Home / World Economy (page 6)

World Economy

China’s Household Debt Poses Moderate Risk, but Pockets of Stress Emerging

Direct risks associated with China’s household debt are low for the sovereign rating (A+/Negative), but some emerging pockets of stress could affect banks, securitised assets and other lenders, says Fitch Ratings. Household debt growth in China has slowed significantly, with the household debt/disposable income ratio rising slightly to 115% in 2023, from 112% in 2022, and remaining moderate on a global scale. The trajectory of household debt mirrors trends in the country’s housing market and, to a lesser extent, is reflected in tepid consumer loan demand. We believe China’s economic ...

Read More »

Super-rich may quit UK over Labour plans for inheritance taxes on trusts

Private banks and advisers to Britain’s super-rich say some clients may quit the country if Labour wins next month’s general election and pushes ahead with plans to abolish tax protections on offshore wealth they wanted to pass to future generations. Keir Starmer’s Labour Party, which leads in the opinion polls and which published its manifesto on Thursday, is targeting Britain’s wealthiest people to support a public spending programme focused on schools, welfare, energy reform and the National Health Service. Around 70,000 people who live in Britain but pay little or ...

Read More »

China’s property measures give sales a boost, but only in big cities

China’s latest property support measures have boosted transactions in its biggest cities, but activity in smaller localities is struggling to get off the ground, pointing to more pain ahead for most of the country’s real estate market. On May 17, China cut minimum mortgage rates and downpayments and instructed municipalities to buy unsold apartments to turn them into social housing, sparking dozens of announcements from cities easing policies under the new guidelines. Small samples of transactions data and interviews with 10 real estate agents across China show the measures had ...

Read More »

China: Economy is set for steady rebound in Q2

China’s economy is set to rebound steadily in the second quarter given steady demand recovery, resilient exports and a low comparison base in the previous year, analysts said. They noted the country is heading in the right direction with regard to dealing with structural issues like property woes, saying more efforts should be made to overcome housing troubles and boost effective domestic demand. Their comments came after data from the National Bureau of Statistics showed on Monday that China’s economy is showing signs of stabilization in May with improvement in ...

Read More »

Students in high-performing education systems record top scores in new international creative thinking assessment

Singapore, Korea, Canada*, Australia*, New Zealand*, Estonia and Finland were the highest-performing education systems in the first-ever creative thinking assessment under the OECD’s Programme for International Student Assessment (PISA). Results of the global assessment, administrated in 2022 to better understand skills of 15-year-old students in 64 countries and economies worldwide, show that students in high-performing education systems are not only succeeding in standardised mathematics, reading and science tests, but also in new creative thinking tests. Students were asked to think of original and diverse solutions for simple expressive tasks and ...

Read More »

US retail sales miss expectations in May

U.S. retail sales increased less than expected in May as lower prices for gasoline and motor vehicles weighed on receipts at service stations and auto dealerships. Retail sales rose 0.1% last month after a downwardly revised 0.2% drop in April,the Commerce Department’s Census Bureau said on Tuesday. Retail sales were previously reported to have been unchanged in April. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, gaining 0.3% in May. Retail sales have in recent months been distorted by an ...

Read More »

German home building permits nosedive in April as slump continues

Building permits for apartments in Germany fell 17% in April from a year earlier, government data showed on Tuesday, underscoring a continued downturn in demand in the construction and real estate industry. Germany has been jolted by the most severe slump in the property sector in decades. Some 17,600 permits were issued, which is 17% fewer than a year earlier, the data showed, making for a nearly 44% drop over the past two years. The number of building permits is an important indicator of future construction. Source: Reuters (Reporting by ...

Read More »

China’s rich ditch flashy luxury as global sales stall, says Bain

China’s richest people are avoiding flaunting their wealth in favour of more discreet fashion, according to a report published on Tuesday by Bain consultancy that predicted the weakest global luxury market since the height of the pandemic. Global sales of personal high-end goods – spanning clothing, accessories and beauty products – this year will be between flat and 4% higher year-on-year, at constant rates, Bain forecast in its twice-yearly luxury report, closely watched in the fashion world. That would be the weakest sales growth since 2020 when sales collapsed during ...

Read More »

Singapore’s May exports down 0.1% y/y, better than forecast

Singapore’s non-oil domestic exports edged down 0.1% in May from the same month a year earlier, data on Tuesday showed, with electronics exports growing for a second straight month, Enterprise Singapore said in a statement. The almost flat result compared with a Reuters poll forecast of a 1.0% fall, and followed a downwardly revised 9.6% drop in April. On a month-on-month seasonally adjusted basis,non-oil exports decreased by 0.1% in May after a 7.3% increase in April. Electronic exports expanded by 21.9% in May, compared to 3.3% in April, posting the ...

Read More »

Fitch Ratings raises India’s 2024/25 GDP forecast to 7.2%

India is expected to grow by 7.2% in the current fiscal year, stronger than earlier expected, with its central bank opting for just a one-quarter-point rate cut in that period, Fitch Ratings said in its quarterly Global Economic Outlook (GEO) report published on Tuesday. The ratings agency has also raised its world growth forecast for 2024 to 2.6% from 2.4% earlier as confidence in European recovery prospects improve, China’s export sector revives and domestic demand in emerging markets excluding China shows stronger momentum. “We still expect the RBI to cut ...

Read More »

UBS introduces framework to size and seize the AI investment opportunity

The launch of ChatGPT marked a watershed moment for AI and its adoption, and the range of problems that AI can address keeps growing at a quick pace. In its new report Artificial intelligence: Sizing and seizing the investment opportunity, UBS GWM’s CIO outlines a value chain led framework for the investable AI universe, describing the value creation in the AI industry from a bottom-up perspective. According to the report, the fortunes of different parts of the value chain are likely to vary even in a fast-growing industry, due to ...

Read More »

The euro zone’s fragmented banking industry

Supporters for more consolidation in the euro zone’s banking sector have been watching Spanish lender BBVA (BME:)’s hostile bid for Sabadell, alongside comments from some supervisors and lawmakers supporting the idea of more tie-ups. Regulators are keen for more consolidation – both within and across countries – because they believe fewer, stronger lenders will boost the economy and enable euro area banks to compete more effectively with larger, more profitable rivals in the United States and Asia. Yet big banking takeovers have been rare since the 2008-09 global financial crisis, ...

Read More »

UK grocery inflation edges lower again ahead of election, Kantar says

UK grocery inflation fell for a sixteenth month in a row in June, industry data showed on Tuesday, providing a little cheer for Prime Minister Rishi Sunak ahead of next month’s election. Market researcher Kantar said annual grocery price inflation was 2.1% in the four weeks to June 9, down from 2.4% in the previous four-week period. In campaigning ahead of the July 4 election, Sunak has sought to take credit for more than halving overall inflation. However, there has been little sign of an opinion poll boost for his ...

Read More »

France would feel lonely if debt crisis hit

France has the largest public debt load in Europe, at 2.3 trillion euros, so investors’ concerns over a far-right victory in upcoming elections are understandable. If Marine Le Pen’s Rassemblement National (RN) comes out as the clear winner of the first round of voting on June 30, markets will become even more turbulent. With the European Central Bank on the sidelines and Brussels wary of a eurosceptic government, France will feel lonely in a crisis. Yields on French 10-year government bonds are now at 3.1% FR10YT=RR, a level last seen ...

Read More »

German investor morale rises modestly in June, ZEW says

The recovery in German investor morale tapered off in June, the ZEW economic research institute said on Tuesday, reporting a modest rise in its economic sentiment index that fell short of forecasts. The economic sentiment index rose to 47.5 points from 47.1 points in May. Analysts polled by Reuters had forecast a June reading of 50.0. The assessment of the current economic situation in Germany slightly deteriorated in June, falling to minus 73.8 points from minus 72.3. ZEW president Achim Wambach said that the inflation expectations of respondents had increased, ...

Read More »

Recent Videos

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