Home / World Economy / World Economy News

World Economy News

How to Win Trade Wars: Don’t Fight Them

In the 1983 movie “War Games,” a NORAD supercomputer (spoiler alert) saves the world when it realizes that, in the game of Global Thermonuclear War, “The only winning move is not to play.” The Trump administration may be learning the same thing about the game of Global Trade War. President Donald Trump is taking flack for losing/surrendering/caving to China in trade talks. That’s to be expected from the likes of Steve Bannon. But people who don’t just want to watch the world burn should be encouraging Trump’s softer approach, not ...

Read More »

Merkel woos China as Trump poses new trade challenge

China said on Thursday it would “open its door wider” to German businesses, helping visiting Chancellor Angela Merkel defend free commerce and counterbalance trade threats from U.S. President Donald Trump that are testing transatlantic ties. Germany and China, two exporting nations that run large trade surpluses with the United States, have found themselves in Trump’s firing line and are scrambling to preserve the rules-based multilateral order on which their prosperity rests. Merkel faces a delicate balancing act on the China trip, her 11th since becoming chancellor in 2005, as she ...

Read More »

German Exports Drop Most Since 2012 as Trade Damps Growth

German exports fell the most in more than five years at the start of 2018, holding back growth in Europe’s largest economy. A breakdown of first-quarter gross domestic product data showed foreign sales fell 1 percent, the most since 2012. Imports also declined, and net trade knocked 0.1 percentage point off GDP. “The drop in exports could be a first sign that the appreciation of the euro in 2017 has started to leave its mark on the economy,” said Carsten Brzeski, an economist at ING-Diba in Frankfurt. But “strong private ...

Read More »

Singapore Q1 GDP Growth Revised Up

Singapore’s economic growth accelerated more than initially estimated in the first quarter, latest figures from the Ministry of Trade and Industry showed Thursday. Gross domestic product advanced 4.4 percent year-over-year in the March quarter, just above the 4.3 percent rise seen in the flash estimate published on April 13. During the fourth quarter of 2017, the rate of growth was 3.6 percent. Among sectors, manufacturing sector grew 9.8 percent year-over-year in the first quarter, mainly driven by the electronics, precision engineering and chemical clusters. The wholesale & retail trade expanded ...

Read More »

French Manufacturing Confidence Stable in May

Business confidence in French manufacturing was stable in May at a level above the long-term reading for the indicator, national statistics agency Insee said Thursday. French business confidence was unchanged at 109 in May from April, while economists had forecast a slight decline. The long-term average for the indicator is 100. Insee’s monthly indicator showed business leaders in manufacturing were more confident about the production outlook for their own companies in May but less so for the whole sector. A wider measure of business confidence fell to 106 in May ...

Read More »

China plans to cut import tariffs on some consumer goods from July 1 – Bloomberg

China plans to cut import tariffs on some consumer products ranging from food and cosmetics as early as July 1, Bloomberg reported on Thursday, citing unidentified sources. The tariff reductions will apply to more product lines than similar cuts on around 200 items announced last year, Bloomberg said, citing the sources. The move would be in step with Beijing’s pledges to its trade partners – including the United States – that China will take steps to increase imports, and a boon to global brands looking to deepen their presence in ...

Read More »

UniCredit : ECB sees ‘clouds’, potential for further slowdown

The euro zone economy continues to motor ahead but a more pronounced slowdown is possible and political uncertainty in places like Italy could undermine confidence, European Central Bank policymakers said on Thursday. ECB stimulus has fuelled a five-year recovery and central bankers have been setting up markets for the end of a 2.55 trillion euro (2.24 trillion pounds) bond purchase scheme. But an unexpected slowdown in the euro zone economy, global trade tensions and fears over the new Italian government’s spending plans could throw a spanner in the works. Playing ...

Read More »

U.K. Retail Sales Bounce Back in April as Weather Warms Up

U.K. retail sales rebounded more than expected in April as the spring weather lured shoppers into stores. Sales climbed 1.6 percent from March, compared with a median estimate of a 0.9 percent gain in a Bloomberg survey. The surge was led by fuel, household goods and clothing, according to data from the Office for National Statistics in London. After cold weather hit sales at the start of the year, the Bank of England is looking out for a recovery in consumption as it debates when to next raise interest rates. ...

Read More »

EU sets new obligations for asset managers to avoid greenwashing

The European Commission proposed on Thursday new rules to force asset managers to disclose how they take into account environmental risks in their investments and abide by new, precise criteria when they claim “green” credentials. The plan is meant to spur green investment and to curb “greenwashing”, a practice whereby companies and other organisations claim to be more environmentally friendly than they really are. “We want to establish an EU-wide classification system for sustainable activities, to provide common definitions for what is green and what is not. This is a ...

Read More »

UN official says China could help Africa in continental free trade area

A UN offcial said that China could play a role in helping Africa achieve benefits of the Continental Free Trade Area. Stephen Karingi, Director of Capacity Development Division at the UN Economic Commission for Africa (UNECA), told Xinhua in Nairobi that for Africa to achieve optimum benefit from the free trade regime it will require new investments in the area of infrastructure, human capacity and manufacturing. “China has all these resources which if deployed in Africa could help the Continent Free Trade area to be fully realized,” Karingi said on ...

Read More »

ECB Confidence Holds Strong for Now Against Trade, Italy Risks

European Central Bank policy makers flagged protectionism and mounting global risks as potential threats to the euro area, though they stuck to their conviction about the underlying momentum in the economy for now. “Uncertainty around the outlook had increased,” the Governing Council said in the account of its April 25-26 monetary-policy meeting published on Thursday. “Risks related to global factors, including the threat of increased protectionism, had become more prominent and warranted monitoring.” The account came hours after the ECB published its Financial Stability Review, where it warned high-debt countries ...

Read More »

U.S. Jobless Claims Rose to 234,000 Last Week

The number of Americans filing new applications for unemployment benefits rose again last week but remained near historically low levels. Initial jobless claims, a proxy for layoffs across the U.S., increased by 11,000 to a seasonally adjusted 234,000 in the week ended May 19, the Labor Department said Thursday. Economists surveyed by The Wall Street Journal had expected 220,000 new claims last week. It was the second straight weekly rise, taking initial claims to their highest level since late March. Claims can be volatile from week to week; the four-week ...

Read More »

The double whammy from rising crude oil prices

The blow from rising crude oil prices is twofold. One, India’s crude oil import dependency is increasing. The chart above shows the country’s import dependency of crude oil has increased to 83.7% for April 2018. The measure stood at 77.3% in fiscal year 2014 (FY14). Simply put, we are consuming more petroleum products and to compensate for our lacklustre local crude oil production growth, we will have to resort to imports. Unfortunately for us, this trend is not expected to change soon. The second part of the problem is that ...

Read More »

German Consumer Sentiment Set to Decline Slightly in June -GfK

German consumer sentiment is set to weaken in June but consumers still take a relaxed view of the escalating geopolitical situation, market research group GfK said in its monthly survey on Thursday. GfK’s forward-looking consumer confidence index is set to ease to 10.7 points in June from 10.8 points in May, it said. The data is below economists’ forecast for a 10.8 point reading in The Wall Street Journal’s survey. “The termination of the nuclear agreement with Iran by the American President did not have a particularly negative effect on ...

Read More »

JPMorgan pushes ECB rate hike forecast to June 2019 after PMI fall

JPMorgan said on Wednesday it has pushed back rate hike expectations from March 2019 to June 2019 after a business survey showed that euro zone economic growth slowed much more sharply than expected this month. IHS Markit’s Euro Zone Composite Flash Purchasing Managers’ Index (PMI), considered a gauge of economic health, slowed in May to an 18-month low of 54.1 from 55.1, below all forecasts in a Reuters poll, which predicted a reading of 55.0. JPMorgan said it has also cut its growth forecast for the second quarter of 2018 ...

Read More »

Recent Videos

Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and International Shipping