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China’s economic recovery seen broadening in Q3 as consumers re-emerge: Reuters poll By Reuters

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© Reuters. A worker is seen on a crane at a construction site in front of Lujiazui financial district, in Shanghai

By Gabriel Crossley

BEIJING (Reuters) – China’s economic recovery likely stepped up in the third quarter as consumers returned to shopping malls and major trading partners reopened for business, shaking off the record slump seen earlier this year.

The world’s second-largest economy is expected to have grown 5.2% in July-September from a year earlier, faster than the second quarter’s 3.2%, according to a Reuters poll.

Policymakers globally are pinning their hopes on a robust recovery in China to help restart demand as economies struggle with heavy lockdowns and a second wave of coronavirus infections.

“China has become the first major economy to return to its pre-virus growth path, thanks to its rapid containment of COVID-19 and effective stimulus response,” said analysts from Capital Economics. However, they warned a renewed slowdown is likely from late 2021 as stimulus fades.

China’s retail spending has lagged the comeback in factory activity as heavy job losses and persistent worries about infection kept consumers at home, even as restrictions lifted.

However, that is expected to have changed in the third quarter.

In September, auto sales marked a sixth straight month of gains with a solid 12.8% growth. Ford Motor Co ‘s (N:) China vehicle sales jumped 25% in the September quarter from a year earlier.

Domestic passenger flights in September, meanwhile, beat their COVID-19 levels, indicating that sector was approaching a full recovery.

The COVID-19 pandemic, which caused China’s first contraction since at least 1992 in the first quarter, is now largely under control, although there has been a small resurgence of cases in the eastern province of Shandong.

Year-on-year forecasts by 51 analysts polled by Reuters ranged from 2.5% to 7.2%.

On a quarterly basis, GDP is expected to have grown 3.2% in July-September compared with a rise of 11.5% in the previous quarter.

The government has rolled out a raft of measures, including more fiscal spending, tax relief and cuts in lending rates and banks’ reserve requirements to revive the virus-hit economy and support employment.

China releases third-quarter GDP data on Monday (0200 GMT), along with September factory output, retail sales and fixed-asset investment.

Analysts polled by Reuters expect industrial output to grow 5.8% in September from a year earlier, quickening from a 5.6% rise in August, while retail sales were seen rising 1.8%, versus a 0.5% rise in August.

POLICY SUPPORT

While the central bank stepped up policy support earlier this year after widespread travel restrictions choked economic activity, it has more recently held off on further easing.

“Because of the ongoing growth recovery but still strong headwinds, we expect Beijing to maintain its ‘wait-and-see’ policy approach through the remainder of this year,” said analysts at Nomura in a note this week.

The International Monetary Fund has forecast an expansion of 1.9% for China for the full year, the only major economy expected to report growth in 2020.

($1 = 6.7236 )





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Economy

U.S. group urges Biden to use financial regulation to control climate change By Reuters

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© Reuters. FILE PHOTO: Democratic presidential candidate Joe Biden attends a Voter Mobilization Event in Cincinnati

By Valerie Volcovici

WASHINGTON (Reuters) – A climate advocacy group comprised of high-profile backers of Democratic presidential candidate Joe Biden on Tuesday urged the former vice president to consider using U.S. financial regulation as a tool to fight global warming if he is elected.

Evergreen Action, a group of former staffers of Washington Governor Jay Inslee and Senator Elizabeth Warren who have advised the Biden campaign on a range of issues, handed the campaign a policy memo detailing how he could use the U.S. financial system to counter climate change within his first 100 days in office if he defeats Republican President Donald Trump.

The U.S. election is on Nov. 3.

“We can’t just focus on the Environmental Protection Agency or the Interior Department. We really need to start thinking more expansively about tackling climate change,” said Maggie Thomas, political director of Evergreen Action.

The recommendations http://www.evergreenaction.com/climatecrash include appointing nominees to key posts like the Treasury secretary, a new Federal Reserve chair in 2022, and others, who prioritize climate action and are likely to support measures to increase transparency around the financial risks posed by global warming.

Progressive (NYSE:) policy groups have pushed for Warren or Sarah Bloom Raskin, former deputy Treasury secretary under Democratic President Barack Obama, as candidates for Treasury secretary under a possible Biden administration. Raskin consulted on the Evergreen Action memo.

The memo also calls on the next administration to catch up with other countries whose central banks have taken action to measure and mitigate climate risks to financial markets. It also recommends creating a climate “stress test” for large financial institutions, and urges the financial sector to prioritize clean investments in communities of color.

The Federal Reserve has only recently begun to acknowledge the potential for climate change to destabilize the financial system and consider possible responses.

Meanwhile, the Trump administration has sought to discourage institutional investors from favoring clean energy over fossil fuels, calling it discriminatory, stymie investor pressure to address climate change, and limit required environmental risk disclosures.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Zeta regains hurricane strength, set for Louisiana landfall By Reuters

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© Reuters. Residents prepare for the arrival of Hurricane Zeta in New Orleans

(Reuters) – Zeta has strengthened again into a hurricane and is expected to make landfall in southeastern Louisiana on Wednesday afternoon, the U.S. National Hurricane Center (NHC) said.

Hurricane Zeta, located about 365 miles (585 km) south-southwest of the mouth of the Mississippi River, is packing maximum sustained winds of 75 mph (120 kph), the NHC added.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Israeli-Japanese VC fund Aristagora raises $60m

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The fund focuses on deep technologies and will invest $500,000 to $1.5 million as an initial investment in each selected initiative.


Israeli-Japanese seed-stage tech investment Aristagora VC has announced its first $60 million fund. The fund focuses on deep technologies and will invest $500,000 to $1.5 million as an initial investment in each selected initiative. As a fund with deep financial capabilities, Aristagora VC will support its portfolio companies’ growth through next-stage funding rounds and will serve as a feeder for later-stage and growth-stage funds and will focus on multi-stage exit strategies.

Aristagora VC will also bring another significant advantage to its portfolio companies. As one of the fund’s active general partners hails from Japan and manages private equity and investment activities in Tokyo, the fund will also provide a foot in the door for its portfolio companies to make connections and secure significant business relationships within the Japanese market, known to be hard for foreigners to penetrate..

The fund’s Israeli managing partners are Anat Tila Cherni and Moshe Sarfaty, both experience venture capital investors, while the chairman of the fund’s Investment Committee is Gideon Ben-Zvi. The fund’s fourth partner, Takeshi Shinoda, operates out of Japan and Singapore.

He said, “From my vantage point in Japan, I know exactly what needs to be done to penetrate the Japanese and Asian markets. My local team and I will ensure that the fund’s portfolio companies are brought to the local market at the right time and in the best possible way. We will help Israeli entrepreneurs with their diverse Israeli mentalities to adapt themselves to the local market while also holding on to the many benefits that led us to focus on the Israeli market in the first place.”

Published by Globes, Israel business news – en.globes.co.il – on October 27, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020



Aristagora VC partners  / Photo: Doron Latzter

Aristagora VC partners / Photo: Doron Latzter



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