Hopes for an influx of Chinese manufacturers evaporate over fears of a global recession
Jitters from the impending Fed Reserve rate cuts can be felt in global markets already impacted by the trade war
Trade wars are ringing alarm bells across the globe and the Southeast Asian region is not spared. Besides the prolonged trade war between the US and China, which will impact the Asean region, there are other trade woes on the horizon.
John Chen, president of the reinsurance company in Swiss Re China, said at the Summer Davos Forum that the “future belongs to China, and the entire Swiss Re regards China as a strategically important market.
Yet the current global crisis we are facing now is to a considerable extent, a “man-made disaster” caused by extreme policies. One of the most obvious examples is the global trade war initiated by the Trump administration.
The economic tariffs on rice exports to the EU were mainly at the behest of Italian rice producers who could not compete with imported rice. As seen in trade wars, we are likely to see more of this sort of action – certainly among the major trading blocks.
The US China trade war with President Donald Trump and President Xi Jinping as the key players shows the world two men with a lot of self-confidence. Or is it overconfidence?
The extended trade war between the US and China is likely to deal a blow to the world economy particularly the Chinese economy but it is set to be a boon to the Asean region.
Investors are entering 2019 with wary thoughts after a year of weak performance characterised by extreme bouts of volatility. The S&P 500, considered the bellwether of stock performance, ended 2018 with its biggest yearly loss since the global financial crisis.