Dollar firm near two-week high, risk appetite unfazed by weak China GDP

The dollar held steady near a two-week high against a basket of currencies on Monday, as investor risk appetite held up despite the latest data showing China’s 2018 economic growth slowing to a near three-decade low. Along with a decline in Treasury yields earlier in the month which had accompanied the retreat in equities, the dollar index had slipped to a three-month low near 95.00 on Jan. 10. “Whether the current ‘risk on’ supporting the dollar can continue will likely depend on how U.S. corpo


The dollar held steady near a two-week high against a basket of currencies on Monday, as investor risk appetite held up despite the latest data showing China’s 2018 economic growth slowing to a near three-decade low. Along with a decline in Treasury yields earlier in the month which had accompanied the retreat in equities, the dollar index had slipped to a three-month low near 95.00 on Jan. 10. “Whether the current ‘risk on’ supporting the dollar can continue will likely depend on how U.S. corpo
Dollar firm near two-week high, risk appetite unfazed by weak China GDP Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-21  Authors: matt cardy, getty images
Keywords: news, cnbc, companies, weak, near, twoweek, low, gdp, risk, dollar, markets, unfazed, steady, jan, china, trade, economy, firm, pound, high


Dollar firm near two-week high, risk appetite unfazed by weak China GDP

The dollar held steady near a two-week high against a basket of currencies on Monday, as investor risk appetite held up despite the latest data showing China’s 2018 economic growth slowing to a near three-decade low.

The dollar index, which measures its strength against a group of six major currencies, was steady at 96.308 after climbing to 96.394 percent on Friday, its strongest since Jan. 4.

Hopes for a thaw in U.S.-China trade tensions, a more dovish-sounding Federal Reserve and optimism that Britain could avoid a “No-Deal” Brexit are some of the factors that have fanned the return in investor risk appetite, which went into a deep freeze in December as global equity markets tumbled.

Along with a decline in Treasury yields earlier in the month which had accompanied the retreat in equities, the dollar index had slipped to a three-month low near 95.00 on Jan. 10.

“The dollar index is clearly on a recovery track. The currency was stuck in a downtrend at the start of January but is now being bought back against its peers such as the yen, euro, pound and the Aussie,” said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.

“Whether the current ‘risk on’ supporting the dollar can continue will likely depend on how U.S. corporate earnings turn out. The United States and China falling out again over trade issues and volatile U.S. politics still remain the main potential risk factors.”

The U.S.-China trade friction has already put pressure on China’s economy, with the latest data showing the world’s second-biggest economy slowing further in the last quarter of 2018. Markets appeared to take the outcome, largely in line with expectations, in their stride.

The dollar was down 0.1 percent at 109.64 yen, taking a pause after climbing to a three-week high of 109.895 on Friday. The greenback had gained more than 1 percent against its Japanese peer last week.

The euro nudged up 0.15 percent to $1.1376 but remained in close reach of a two-week low of $1.1353 brushed on Friday.

The pound was 0.1 percent lower at $1.2860.

Sterling had climbed to a two-month peak of $1.3001 on Thursday on growing confidence that Britain can avoid leaving the European Union without a deal, but faced profit-taking on Friday.

“The pound is at current levels based on assumption that a no deal Brexit has been avoided. But even an exit with a deal will likely leave some damage on the economy, so it is difficult to see the pound make much further headway from here,” said Koji Fukaya, president at FPG Securities in Tokyo.

British Prime Minister Theresa May will on Monday put forward a motion on her proposed next steps. Over the following week, lawmakers will be able to propose alternatives. They will debate these plans on Jan. 29, and voting on them should indicate whether any could get majority support.

The Australian dollar was steady at $0.7166 after ending Friday on a loss of 0.3 percent.

The Aussie was largely unfazed by China’s growth numbers though analysts agree that any sharp drop in demand from its biggest trading partner would put a dent in local assets.

Australia’s close trading links with the world’s second-biggest economy means its currency is often regarded as a proxy to China-related trades.

The 10-year Treasury note yield rose to a three-week high of 2.799 percent on Friday, continuing its rise from a one-year low of 2.543 percent plumbed early in January.

The U.S. financial markets will be closed on Monday for Martin Luther King Jr. Day.


Company: cnbc, Activity: cnbc, Date: 2019-01-21  Authors: matt cardy, getty images
Keywords: news, cnbc, companies, weak, near, twoweek, low, gdp, risk, dollar, markets, unfazed, steady, jan, china, trade, economy, firm, pound, high


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Tax cuts could be the ‘front line’ of China’s fight against slowing growth, experts say

Tax cuts in China could be at the center of Beijing’s fight against a slowing economy amid an ongoing trade spat with the U.S., experts said. “Fiscal policy will be the front line of defense against mounting macroeconomic headwinds in 2019,” Haibin Zhu, J.P. Morgan’s chief China economist, wrote in a recent note. The challenges in China’s economy are already starting to show. That comes amid signs of softening demand — with recent data pointing to weaker exports and a slowdown in manufacturing a


Tax cuts in China could be at the center of Beijing’s fight against a slowing economy amid an ongoing trade spat with the U.S., experts said. “Fiscal policy will be the front line of defense against mounting macroeconomic headwinds in 2019,” Haibin Zhu, J.P. Morgan’s chief China economist, wrote in a recent note. The challenges in China’s economy are already starting to show. That comes amid signs of softening demand — with recent data pointing to weaker exports and a slowdown in manufacturing a
Tax cuts could be the ‘front line’ of China’s fight against slowing growth, experts say Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-21  Authors: huileng tan
Keywords: news, cnbc, companies, slowest, experts, recent, chinas, slowing, fight, cuts, data, china, beijing, line, say, wrote, tax, growth, zhu, economy, amid, trade


Tax cuts could be the 'front line' of China's fight against slowing growth, experts say

Tax cuts in China could be at the center of Beijing’s fight against a slowing economy amid an ongoing trade spat with the U.S., experts said.

“Fiscal policy will be the front line of defense against mounting macroeconomic headwinds in 2019,” Haibin Zhu, J.P. Morgan’s chief China economist, wrote in a recent note.

The challenges in China’s economy are already starting to show. On Monday, Beijing reported its slowest GDP growth in decades, with official data showing that the economy grew 6.6 percent in 2018 compared to a year ago — it’s slowest rate of expansion since 1990.

That comes amid signs of softening demand — with recent data pointing to weaker exports and a slowdown in manufacturing activity — as the trade war with the U.S. appears to be taking a toll. Analysts such as Zhu say that Beijing will need to turn to fiscal measures, which typically means boosting government spending and cutting taxes, in order to stimulate the economy.


Company: cnbc, Activity: cnbc, Date: 2019-01-21  Authors: huileng tan
Keywords: news, cnbc, companies, slowest, experts, recent, chinas, slowing, fight, cuts, data, china, beijing, line, say, wrote, tax, growth, zhu, economy, amid, trade


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Europe should stand up and compete, not blame China

It is clearly a sign of changing times: Silvio Berlusconi, the longest-serving prime minister of the Italian Republic, wants to fight, at the ripe age of 82, in the European parliamentary elections next May. He pledges to make sure that “Europeans don’t stray too far from Western values” and fall under “the domination of the Chinese empire whose convictions and values are opposed to our own.” China, of course, has nothing to do with Berlusconi’s real intentions; it’s just a device to attract att


It is clearly a sign of changing times: Silvio Berlusconi, the longest-serving prime minister of the Italian Republic, wants to fight, at the ripe age of 82, in the European parliamentary elections next May. He pledges to make sure that “Europeans don’t stray too far from Western values” and fall under “the domination of the Chinese empire whose convictions and values are opposed to our own.” China, of course, has nothing to do with Berlusconi’s real intentions; it’s just a device to attract att
Europe should stand up and compete, not blame China Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-21  Authors: dr michael ivanovitch, emmanuele contini, nurphoto, getty images
Keywords: news, cnbc, companies, minister, weekly, italian, europe, villa, stand, values, china, wants, works, blame, prime, western, chinese, compete


Europe should stand up and compete, not blame China

It is clearly a sign of changing times: Silvio Berlusconi, the longest-serving prime minister of the Italian Republic, wants to fight, at the ripe age of 82, in the European parliamentary elections next May. He pledges to make sure that “Europeans don’t stray too far from Western values” and fall under “the domination of the Chinese empire whose convictions and values are opposed to our own.”

China, of course, has nothing to do with Berlusconi’s real intentions; it’s just a device to attract attention like a bandana he was sporting, after a hair transplant operation, at his spectacularly beautiful Villa Certosa in Sardinia, when he was hosting the then-British Prime Minister Tony Blair in the spring of 2004.

Berlusconi sees that the Italian governing coalition party M5S, with its polls down to 25.4 percent, is losing ground. He, therefore, wants to boost the chances of his right-of-center Forza Italia to take its place alongside his increasingly popular allies of the Northern League, currently polling at 36 percent.

The Chinese have nothing to fear because here is what the other Italy — the one that works — is doing: Last Monday, Italy’s low-cost airline Neos Air launched its weekly service from Milan to Guiyang in China’s Guizhou Province to serve the rising flows of tourism and other economic exchanges.


Company: cnbc, Activity: cnbc, Date: 2019-01-21  Authors: dr michael ivanovitch, emmanuele contini, nurphoto, getty images
Keywords: news, cnbc, companies, minister, weekly, italian, europe, villa, stand, values, china, wants, works, blame, prime, western, chinese, compete


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Canada’s vast pension fund is sticking with China even as political tensions mount

Investment strategies involving China are coming under scrutiny amid political and security-related conflicts between Beijing and major Western economies, as well as a predicted growth slowdown for the world’s second-largest economy. But Canada’s massive pension fund, among the world’s top 10 in terms of size, is sticking to plans to expand its holdings there. Mark Machin, president and chief executive of Canada’s Pension Plan Investment Board (CPPIB), sees the country’s potential to diversify h


Investment strategies involving China are coming under scrutiny amid political and security-related conflicts between Beijing and major Western economies, as well as a predicted growth slowdown for the world’s second-largest economy. But Canada’s massive pension fund, among the world’s top 10 in terms of size, is sticking to plans to expand its holdings there. Mark Machin, president and chief executive of Canada’s Pension Plan Investment Board (CPPIB), sees the country’s potential to diversify h
Canada’s vast pension fund is sticking with China even as political tensions mount Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-21  Authors: natasha turak
Keywords: news, cnbc, companies, sticking, worlds, pension, political, world, market, portfolio, plans, china, growth, investment, tensions, expected, fund, mount, vast, secondlargest, canadas


Canada's vast pension fund is sticking with China even as political tensions mount

Investment strategies involving China are coming under scrutiny amid political and security-related conflicts between Beijing and major Western economies, as well as a predicted growth slowdown for the world’s second-largest economy.

But Canada’s massive pension fund, among the world’s top 10 in terms of size, is sticking to plans to expand its holdings there.

Mark Machin, president and chief executive of Canada’s Pension Plan Investment Board (CPPIB), sees the country’s potential to diversify his portfolio as outweighing any shorter-term economic setbacks.

“China is today the second-largest economy in the world, the second-largest equity market in the world, the third-largest bond market in world, and we have the ability to diversify into it,” he told CNBC at the World Economic Forum in Davos.

“So it’s more of a diversification call than a market call for the next few weeks or months … It’s much longer-term and it’s about diversification.”

China’s growth outlook has been dampened by weakened domestic demand and the trade war with Washington that’s hit exports. A recent Reuters poll found that the country’s growth is expected to slow to 6.3 percent this year from an expected 6.6 percent in 2018, which would be the lowest in 29 years. That figure was 6.9 percent in 2017.

The CPPIB, with $280 billion in assets under management as of last summer, plans to more than double its assets allocated to China by 2025 from a current 7.6 percent of its portfolio to up to 20 percent, it announced last August.


Company: cnbc, Activity: cnbc, Date: 2019-01-21  Authors: natasha turak
Keywords: news, cnbc, companies, sticking, worlds, pension, political, world, market, portfolio, plans, china, growth, investment, tensions, expected, fund, mount, vast, secondlargest, canadas


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Petrochemicals giant SABIC isn’t worried about China’s growth slowdown

The Middle East’s largest public company is expanding its investments in China despite an expected slowdown in the country’s economic growth, its CEO said Monday. Investors and analysts have raised concern over China’s growth outlook, which has been dampened by weakened domestic demand and the trade war with Washington that’s hit exports. But SABIC, which is also the fourth-largest petrochemicals producer in the world, plans to keep investing in China. “I think Asia is growing and China is reall


The Middle East’s largest public company is expanding its investments in China despite an expected slowdown in the country’s economic growth, its CEO said Monday. Investors and analysts have raised concern over China’s growth outlook, which has been dampened by weakened domestic demand and the trade war with Washington that’s hit exports. But SABIC, which is also the fourth-largest petrochemicals producer in the world, plans to keep investing in China. “I think Asia is growing and China is reall
Petrochemicals giant SABIC isn’t worried about China’s growth slowdown Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-21  Authors: natasha turak, getty images
Keywords: news, cnbc, companies, giant, think, slowdown, albenyan, world, really, chinas, china, war, growth, isnt, sabic, expected, worried, trade, petrochemicals


Petrochemicals giant SABIC isn't worried about China's growth slowdown

The Middle East’s largest public company is expanding its investments in China despite an expected slowdown in the country’s economic growth, its CEO said Monday.

Speaking to CNBC during the World Economic Forum in Davos, Switzerland, Yousef Al-Benyan, chief executive of Saudi Arabian petrochemicals manufacturer SABIC, dismissed growing concerns about the future of the world’s second-largest economy.

“If you are a long-term player I think this is normal in any economy, they have to go through sometimes a bumpy road. And that is, I think, what we experienced with China today,” Al-Benyan told CNBC’s Hadley Gamble, referencing the ongoing trade war between China and the U.S. That, he said, “has really influenced some of the growth we expect out of China, but from a SABIC perspective we look at China as long term,” he said.

Investors and analysts have raised concern over China’s growth outlook, which has been dampened by weakened domestic demand and the trade war with Washington that’s hit exports. A recent Reuters poll found that the country’s growth is expected to slow to 6.3 percent this year from an expected 6.6 percent in 2018, which would be the lowest in 29 years. That figure was 6.9 percent in 2017.

But SABIC, which is also the fourth-largest petrochemicals producer in the world, plans to keep investing in China.

“I think Asia is growing and China is really driving this growth,” Al-Benyan said. “That is why we have improved our presence in China specifically, we are trying to put even more investment in China because we think the growth is there.”


Company: cnbc, Activity: cnbc, Date: 2019-01-21  Authors: natasha turak, getty images
Keywords: news, cnbc, companies, giant, think, slowdown, albenyan, world, really, chinas, china, war, growth, isnt, sabic, expected, worried, trade, petrochemicals


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McDonald’s apologizes after people said an ad supported Taiwan independence from China

An ad from McDonald’s Taiwan that sparked a row about whether it showed support for the country’s independence from China has been withdrawn. People in China protested against the ad online, accusing the company of supporting an independent Taiwan, according to a report on the Focus Taiwan website on Saturday. McDonald’s Taiwan said the ad promoted its Egg McMuffin and aimed to boost students’ morale, while McDonald’s China said it supported the “One China” principle. “We regret about the ad whi


An ad from McDonald’s Taiwan that sparked a row about whether it showed support for the country’s independence from China has been withdrawn. People in China protested against the ad online, accusing the company of supporting an independent Taiwan, according to a report on the Focus Taiwan website on Saturday. McDonald’s Taiwan said the ad promoted its Egg McMuffin and aimed to boost students’ morale, while McDonald’s China said it supported the “One China” principle. “We regret about the ad whi
McDonald’s apologizes after people said an ad supported Taiwan independence from China Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-21  Authors: lucy handley
Keywords: news, cnbc, companies, taiwan, showed, independence, mcmuffin, support, china, focus, apologizes, supported, students, ticket, ad, mcdonalds


McDonald's apologizes after people said an ad supported Taiwan independence from China

An ad from McDonald’s Taiwan that sparked a row about whether it showed support for the country’s independence from China has been withdrawn.

The commercial, broadcast on YouTube, showed a student’s exam admission ticket stating her nationality as Taiwanese. She drops the ticket on the street and it’s run over by a truck, before being washed clean by a water sprayer. The ad then rewinds and the student is shown eating an Egg McMuffin, known as a Man Fu Bao — which reportedly has a similar pronunciation in Mandarin to “full of good luck.”

People in China protested against the ad online, accusing the company of supporting an independent Taiwan, according to a report on the Focus Taiwan website on Saturday.

McDonald’s Taiwan said the ad promoted its Egg McMuffin and aimed to boost students’ morale, while McDonald’s China said it supported the “One China” principle. “We regret about the ad which had stirred up such an unnecessary misunderstanding,” McDonald’s in China said on its Weibo page, according to Focus Taiwan. “We always hold a solid ‘One China’ stance and we are determined to continue to support China’s sovereignty and territorial integrity.”


Company: cnbc, Activity: cnbc, Date: 2019-01-21  Authors: lucy handley
Keywords: news, cnbc, companies, taiwan, showed, independence, mcmuffin, support, china, focus, apologizes, supported, students, ticket, ad, mcdonalds


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European stocks open lower as China posts slowest growth in nearly three decades

The pan-European Stoxx 600 index sank 0.3 percent as traders kicked off Monday’s session, with most sectors and major bourses in the red. Market players monitored news of slowing growth in the world’s second-largest economy. It’s the latest sign of weakness in the Chinese economy, and comes at a critical time in Beijing’s trade battle with the United States. Meanwhile, traders await British Prime Minister Theresa May’s announcement of a “Plan B” for Brexit which she is due to present in parliame


The pan-European Stoxx 600 index sank 0.3 percent as traders kicked off Monday’s session, with most sectors and major bourses in the red. Market players monitored news of slowing growth in the world’s second-largest economy. It’s the latest sign of weakness in the Chinese economy, and comes at a critical time in Beijing’s trade battle with the United States. Meanwhile, traders await British Prime Minister Theresa May’s announcement of a “Plan B” for Brexit which she is due to present in parliame
European stocks open lower as China posts slowest growth in nearly three decades Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-21  Authors: ryan browne
Keywords: news, cnbc, companies, slowest, worlds, china, data, minister, traders, mays, prime, stocks, nearly, index, posts, growth, european, chinese, lower, trade, economy, open, decades


European stocks open lower as China posts slowest growth in nearly three decades

The pan-European Stoxx 600 index sank 0.3 percent as traders kicked off Monday’s session, with most sectors and major bourses in the red.

Market players monitored news of slowing growth in the world’s second-largest economy. Official data published Monday said China’s gross domestic product (GDP) in 2018 grew 6.6 percent from the previous year, in line with analyst expectations but at its most sluggish rate in almost three decades.

It’s the latest sign of weakness in the Chinese economy, and comes at a critical time in Beijing’s trade battle with the United States. The two countries have been locked in a tense sparring of tariffs since the start of last year, but are currently trying to prevent any further escalation over the course of a 90-day truce.

Over the weekend, President Donald Trump said a trade deal with China “could very well happen,” but denied what he called “false reports” that the U.S. was considering lifting duties on Chinese imports.

Meanwhile, traders await British Prime Minister Theresa May’s announcement of a “Plan B” for Brexit which she is due to present in parliament later on Monday.

Last week, U.K. lawmakers rejected May’s EU withdrawal agreement, an event that was largely expected. The prime minister subsequently won a confidence vote that was tabled by opposition leader Jeremy Corbyn, albeit by a slim margin of 19 votes.

Sterling was barely changed in early morning trade, trading just below the flatline at $1.2871.

In corporate news, Logitech is due to report third-quarter results on Monday.

In terms of data, Germany’s December Producer Price Index (PPI) will be released at 2 a.m. ET.


Company: cnbc, Activity: cnbc, Date: 2019-01-21  Authors: ryan browne
Keywords: news, cnbc, companies, slowest, worlds, china, data, minister, traders, mays, prime, stocks, nearly, index, posts, growth, european, chinese, lower, trade, economy, open, decades


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Asia markets: China economic data, currencies in focus

Asia Pacific markets started the trading week with gains despite China reporting that its economy grew at the lowest official pace in 28 years. Fourth quarter GDP growth was 6.4 percent, which was also in line with expectations. While Beijing’s official GDP figures are seen as one of the crucial indicators of China’s economic health, many outside experts have expressed skepticism about the veracity of the numbers. “Falling producer prices and new export orders point to a slowdown in China’s grow


Asia Pacific markets started the trading week with gains despite China reporting that its economy grew at the lowest official pace in 28 years. Fourth quarter GDP growth was 6.4 percent, which was also in line with expectations. While Beijing’s official GDP figures are seen as one of the crucial indicators of China’s economic health, many outside experts have expressed skepticism about the veracity of the numbers. “Falling producer prices and new export orders point to a slowdown in China’s grow
Asia markets: China economic data, currencies in focus Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-21  Authors: eustance huang
Keywords: news, cnbc, companies, official, chinas, data, focus, quarter, economic, gdp, gains, currencies, growth, president, china, markets, economy, asia, trade


Asia markets: China economic data, currencies in focus

Asia Pacific markets started the trading week with gains despite China reporting that its economy grew at the lowest official pace in 28 years.

The world’s second-largest economy grew 6.6 percent in 2018, which matched analysts’ expectations, and was lower than a revised 6.8 percent growth in 2017. Fourth quarter GDP growth was 6.4 percent, which was also in line with expectations.

“I think what we’re seeing actually in the fourth quarter is that while the economy is decelerating, we actually still have some of the supports,” Helen Zhu, head of China equities at Blackrock, told CNBC’s “Street Signs” on Monday. “For example, for most of the quarter, from the export front loading impact that we had probably before the Argentina G-20 (summit) when people’s expectations regarding trade became a little bit more optimistic.”

Chinese President Xi Jinping and U.S. President Donald Trump agreed to a 90-day pause in tariff escalation at the G-20 summit in Argentina late in 2018.

While Beijing’s official GDP figures are seen as one of the crucial indicators of China’s economic health, many outside experts have expressed skepticism about the veracity of the numbers.

Raymond Yeung, chief economist for Greater China at the Australia and New Zealand Banking Group, wrote in a note that China’s GDP numbers are “not an accurate gauge” of its economic growth. Still, he pointed out, the gap between the actual figures and the official targets usually shapes the government’s policy stance.

“Falling producer prices and new export orders point to a slowdown in China’s growth momentum,” Yeung added. “To celebrate the 70th anniversary of the founding of the People’s Republic of China in 2019, President Xi (Jinping) will still likely launch growth-supportive policies.”

The mainland Chinese markets, closely watched as a result of the ongoing U.S.-China trade fight, saw gains on the back of the data release. The Shanghai composite rose more than 0.5 percent to close at about 2,610.51 while the Shenzhen composite gained 0.607 percent to end its trading day at around 1,330.17. The Shenzhen component also advanced 0.592 percent to close at approximately 7,626.24.

Hong Kong’s Hang Seng index saw gains of more than 0.3 percent in late-afternoon trade.


Company: cnbc, Activity: cnbc, Date: 2019-01-21  Authors: eustance huang
Keywords: news, cnbc, companies, official, chinas, data, focus, quarter, economic, gdp, gains, currencies, growth, president, china, markets, economy, asia, trade


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Davos opens with US-China contest as ‘the key problem of our time’

Davos, Switzerland – Former U.S. National Security Adviser Stephen Hadley poses the most significant question hovering over the global future as the World Economic Forum’s annual meeting opens here Monday. “Can the United States and China be strategic competitors and strategic cooperators at the same time?” In some 25 years of attending Davos, first with the Wall Street Journal and now at the Atlantic Council, I’ve never sensed such concern among its attendees about emerging risk: Political, eco


Davos, Switzerland – Former U.S. National Security Adviser Stephen Hadley poses the most significant question hovering over the global future as the World Economic Forum’s annual meeting opens here Monday. “Can the United States and China be strategic competitors and strategic cooperators at the same time?” In some 25 years of attending Davos, first with the Wall Street Journal and now at the Atlantic Council, I’ve never sensed such concern among its attendees about emerging risk: Political, eco
Davos opens with US-China contest as ‘the key problem of our time’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-20  Authors: fred kempe, fabrice coffrini, afp, getty images, -fred kempe, president, ceo, the atlantic counsel
Keywords: news, cnbc, companies, contest, world, problem, political, western, weeks, economic, china, unprecedented, technologies, opens, uschina, davos, key, future


Davos opens with US-China contest as 'the key problem of our time'

Davos, Switzerland – Former U.S. National Security Adviser Stephen Hadley poses the most significant question hovering over the global future as the World Economic Forum’s annual meeting opens here Monday.

“Can the United States and China be strategic competitors and strategic cooperators at the same time?” Hadley asked. “It’s what the world requires, but it’s also never been done before.”

In short: What’s needed are unprecedented means to navigate unprecedented times.

In some 25 years of attending Davos, first with the Wall Street Journal and now at the Atlantic Council, I’ve never sensed such concern among its attendees about emerging risk: Political, economic, societal and climate. Most crucially, worry is growing over how emerging technologies – and the Sino-U.S. struggle for their commanding heights – will define or disrupt the industries and countries they inhabit.

Characteristically, World Economic Forum founder Klaus Schwab is appealing to his 3,000 participants to mold that uncertain future, representing as they do some of the most influential political, business and civil society actors of their times.

Yet the past week’s news captured some of the difficulties Western leaders face in shaping that future. The parliamentary defeat of Theresa May’s Brexit plan and President Donald Trump’s continued U.S. government shutdown have underscored the political ferment that will infect Western democracies for years to come. Both leaders cancelled their participation at Davos to deal with their immediate concerns at home.

The past week’s stories that got more of my attention, however, were the latest, contradictory episodes of the generational Chinese-U.S. drama as framed by Hadley.

On the positive side, news leaks suggested China was offering to settle its trade dispute with the U.S., through an epic offer to buy more than $1 trillion of goods. On the negative side, U.S. federal investigators were acting against China’s Huawei Technologies on allegations it stole technologies. At the same time, a bipartisan group of lawmakers in Congress has put forward legislation that would limit what U.S. companies could sell Chinese telecom operators.

Meanwhile, a North Korean emissary’s visit to Washington resulted in an agreement to arrange a second summit between President Trump and Kim Jong Un at end-February. Though this would appear to be a bilateral North Korean-US affair, how it is resolved will be a test of whether the U.S. and China can find collaborative solutions to major global problems when their interests clash.


Company: cnbc, Activity: cnbc, Date: 2019-01-20  Authors: fred kempe, fabrice coffrini, afp, getty images, -fred kempe, president, ceo, the atlantic counsel
Keywords: news, cnbc, companies, contest, world, problem, political, western, weeks, economic, china, unprecedented, technologies, opens, uschina, davos, key, future


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China set to post slowest growth in 28 years in 2018, more stimulus seen

That could pull 2018 gross domestic product (GDP) growth to 6.6 percent, the lowest since 1990 and down from a revised 6.8 percent in 2017. “What China can really do this year is to prevent deflation, prevent a recession and a hard landing in the economy,” Chen said. On a quarterly basis, growth likely eased to 1.5 percent inOct-Dec from 1.6 percent in the preceding period. China will release its fourth-quarter and 2018 GDP data onMonday (0200 GMT), along with December factory output, retailsale


That could pull 2018 gross domestic product (GDP) growth to 6.6 percent, the lowest since 1990 and down from a revised 6.8 percent in 2017. “What China can really do this year is to prevent deflation, prevent a recession and a hard landing in the economy,” Chen said. On a quarterly basis, growth likely eased to 1.5 percent inOct-Dec from 1.6 percent in the preceding period. China will release its fourth-quarter and 2018 GDP data onMonday (0200 GMT), along with December factory output, retailsale
China set to post slowest growth in 28 years in 2018, more stimulus seen Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-20  Authors: str, afp, getty images
Keywords: news, cnbc, companies, slowest, growth, 28, seen, 2018, stimulus, global, post, economy, gdp, beijing, china, expected, quickly, set


China set to post slowest growth in 28 years in 2018, more stimulus seen

China is expected to report on Monday that economic growth cooled to its slowest in 28 years in 2018 amid weakening domestic demand and bruising U.S. tariffs, adding pressure on Beijing to roll out more support measures to avert a sharper slowdown.

Growing signs of weakness in China — which has generated nearly a third of global growth in the past decade — are stoking worries about risks to the world economy and are weighing on profits for firms ranging from Apple to big carmakers.

Chinese policymakers have pledged more support for the economy this year to reduce the risk of massive job losses, but they have ruled out a “flood” of stimulus like that which Beijing has unleashed in the past, which quickly juiced growth rates but left a mountain of debt.

Analysts polled by Reuters expect the world’s second-largest economy to have grown 6.4 percent in the October-December quarter from a year earlier, slowing from the previous quarter’s 6.5 percent pace and matching levels last seen in early 2009 during the global financial crisis.

That could pull 2018 gross domestic product (GDP) growth to 6.6 percent, the lowest since 1990 and down from a revised 6.8 percent in 2017.

With stimulus measures expected to take some time to kick in, most analysts believe conditions in China are likely to get worse before they get better, and see a further slowdown to 6.3 percent this year. Some analysts believe real growth levels are already much weaker than official data suggest.

Even if China and the United States agree on a trade deal in current talks, which is a tall order, analysts said it would be no panacea for the sputtering Chinese economy unless Beijing can galvanize weak investment and consumer demand.

Chen Xingdong, chief China economist at BNP Paribas, said investors should not expect the latest round of stimulus to produce similar results as during the 2008-09 global crisis, when Beijing’s huge spending package quickly boosted growth.

“What China can really do this year is to prevent deflation, prevent a recession and a hard landing in the economy,” Chen said.

On a quarterly basis, growth likely eased to 1.5 percent inOct-Dec from 1.6 percent in the preceding period.

China will release its fourth-quarter and 2018 GDP data onMonday (0200 GMT), along with December factory output, retailsales and fixed-asset investment.

Since China’s quarterly GDP readings tend to be unusually steady, most investors prefer to focus on recent trends.

Surprising contractions in December trade data and factory activity gauges in recent weeks have suggested the economy cooled more quickly than expected at the end of 2018, leaving it on shakier footing at the start of the new year.

Sources have told Reuters that Beijing was planning tolower its growth target to 6-6.5 percent this year from around 6.5 percent in 2018.


Company: cnbc, Activity: cnbc, Date: 2019-01-20  Authors: str, afp, getty images
Keywords: news, cnbc, companies, slowest, growth, 28, seen, 2018, stimulus, global, post, economy, gdp, beijing, china, expected, quickly, set


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