| Cyprus Can't Put 'Genie Back in the Bottle': O'Neill |
https://www.cnbc.com/2013/03/18/cyprus-cant-put-genie-back-in-the-bottle-oneill.html |
2013-03-18 11:19:04+00:00 |
Matthew J. Belvedere |
CNBC |
The news that the Euro Zone wants bank depositors in Cyprus to contribute towards a bailout is surprising even given the ongoing European debt crisis, Jim O'Neill, chairman of Goldman Sachs Asset Management, told CNBC on Monday. |
cnbc, Articles, Economy, Markets, Central banking, Europe News, World economy, World Economy, Central Banks, Euro, Squawk Box U.S., Currencies, source:tagname:CNBC US Source |
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Markets |
<div class="ArticleBody-articleBody" data-analytics="RegularArticle-articleBody-5-2" data-module="ArticleBody" data-test="articleBody-2" id="RegularArticle-ArticleBody-5"><span class="HighlightShare-hidden" style="top:0;left:0"></span><div aria-labelledby="Placeholder-ArticleBody-Video-100562489" role="region"><div class="PlaceHolder-wrapper" data-test="VideoPlaceHolder" data-vilynx-id="3000153714" id="Placeholder-ArticleBody-Video-100562489" role="button" tabindex="0"><div class="InlineVideo-videoEmbed" data-test="InlineVideo" id="InlineVideo-0"><div class="InlineVideo-wrapper"><div class="InlineVideo-inlineThumbnailContainer"><img alt="Cyprus Bailout Proposal 'Unprecedented': O'Neill" class="InlineVideo-videoThumbnail" src="https://image.cnbcfm.com/api/v1/image/100562492-6dad7d03b7f33d9c08978ae8f101331b4a20cc9f.jpg?v=1529461878&w=750&h=422&vtcrop=y"/><span class="InlineVideo-videoButton"></span><span><div class="undefined PlayButton-container" data-test="PlayButton"><div class="PlayButton-featured PlayButton-base" data-type="play"><span class="PlayButton-flyout">watch now</span><span class="icon-play-triangle PlayButton-icon"></span></div></div></span></div><div class="InlineVideo-videoFooter"><div class="InlineVideo-videoDurationContainer"><span class="InlineVideo-videoLabel">VIDEO</span><span class="InlineVideo-videoDurationWithLeading0">9:31</span><span class="InlineVideo-videoDuration InlineVideo-videoLabel">09:31</span></div><div class="InlineVideo-title">Cyprus Bailout Proposal 'Unprecedented': O'Neill</div><div class="InlineVideo-section"><a href="https://www.cnbc.com/squawk-box-us/">Squawk Box</a></div></div></div></div><div class="PlaceHolder-endCard PlaceHolder-inactive"></div></div></div><div class="group"><p> The news that the euro zone wants bank depositors in Cyprus to contribute towards a bailout is surprising even given the ongoing European debt crisis, Jim O'Neill, chairman of Goldman Sachs Asset Management, told CNBC on Monday.</p><p> "I'm still trying to get my head around [it]," O'Neill said in a "<a href="https://www.cnbc.com/squawk-box-us/">Squawk Box</a>" interview. He added that Cyprus won't be able to "put the Genie back in the bottle" despite whether or not the depositor hair-cut gets approval.</p><div class="lazyload-placeholder" style="height:100%"></div><p>"This is a biggie, in my opinion," O'Neill said. "I think my biggest concern with this is not whether or not this ultimately gets done, not that the idea that Cyprus would come up with something like this, but that the EU (European Union) would back it and go along these things."<br/></p><p> <strong>European Market Reaction</strong></p></div><div data-test="ArticleTable"><section class="TableHeader-container" data-test="TableHeader" style="border-color:#002f6c"></section><div class="ArticleTable-tableContainer"><div data-test="MarketTable"><div class="BasicTable-basicTable" data-test="BasicTable"><div class="BasicTable-tableWrapper"><div class="BasicTable-articleContainer" style="border-color:#002f6c"><table class="BasicTable-table"><tbody class="BasicTable-tableBody"></tbody></table></div></div><div><br/></div></div></div></div></div><div class="group"><p> Since the news over the weekend, there are media reports that Cyprus will put forward a new proposal on Monday under which a tax-free threshold or a lower tax rate for smaller depositors could be introduced. The move would be aimed at easing the pain of the bailout agreement, which would impose an unprecedented tax on savers with more than 100,000 euros in return for financial aid.</p><p> (Read More: <a href="https://www.cnbc.com/2013/03/18/cyprus-to-put-forward-new-plan-banks-stay-shut-reports.html">Cyprus to Put Forward New Bailout Plan: Reports</a>)</p><p> O'Neill said this idea is another move that erodes trust and the economic rationale for the European Union. "If they keep doing things like all of this kind of protective measures to keep the show on the road," he continued, "at the end of the day, people who are wanting a hope and jobs and some exciting future, they're not going to stand for it."</p><div class="lazyload-placeholder" style="height:100%"></div></div><div class="group"><p> —<em>By CNBC's <a href="https://www.cnbc.com/matthew-j-belvedere/">Matthew J. Belvedere</a>; Follow him on Twitter </em><a class="webresource" href="http://twitter.com/Matt_Belvedere" target="_blank">@Matt_SquawkCNBC</a>. <em>Reuters also contributed to this report.</em><br/> </p></div><div class="MobileAdhesion-container" data-module="mps-slot" id="ArticleBody-MobileAdhesion"></div></div> |
watch nowVIDEO9:3109:31Cyprus Bailout Proposal 'Unprecedented': O'NeillSquawk Box The news that the euro zone wants bank depositors in Cyprus to contribute towards a bailout is surprising even given the ongoing European debt crisis, Jim O'Neill, chairman of Goldman Sachs Asset Management, told CNBC on Monday. "I'm still trying to get my head around [it]," O'Neill said in a "Squawk Box" interview. He added that Cyprus won't be able to "put the Genie back in the bottle" despite whether or not the depositor hair-cut gets approval."This is a biggie, in my opinion," O'Neill said. "I think my biggest concern with this is not whether or not this ultimately gets done, not that the idea that Cyprus would come up with something like this, but that the EU (European Union) would back it and go along these things." European Market Reaction Since the news over the weekend, there are media reports that Cyprus will put forward a new proposal on Monday under which a tax-free threshold or a lower tax rate for smaller depositors could be introduced. The move would be aimed at easing the pain of the bailout agreement, which would impose an unprecedented tax on savers with more than 100,000 euros in return for financial aid. (Read More: Cyprus to Put Forward New Bailout Plan: Reports) O'Neill said this idea is another move that erodes trust and the economic rationale for the European Union. "If they keep doing things like all of this kind of protective measures to keep the show on the road," he continued, "at the end of the day, people who are wanting a hope and jobs and some exciting future, they're not going to stand for it." —By CNBC's Matthew J. Belvedere; Follow him on Twitter @Matt_SquawkCNBC. Reuters also contributed to this report. |
27c563cd-6099-5a7e-8be8-99f9d69a1899 |
2024-09-07 |
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| We are in the middle of a currency war: Strategist |
https://www.cnbc.com/2015/05/29/we-are-in-the-middle-of-a-currency-war-analyst.html |
2015-05-29 17:39:16+00:00 |
Nana Sidibe |
CNBC |
BofA Merrill Lynch's David Woo said that we are currently in the middle of a currency war in which the Fed is unable to play. |
cnbc, Articles, CAC 40 Index, World economy, Federal Reserve System, Bank of America Corp, Wells Fargo & Co, Greece, World Markets, European Central Bank, Central banking, International Monetary Fund, The Fed, World Economy, Central Banks, Squawk on the Street, Foreign Exchange, Markets, Currencies, source:tagname:CNBC US Source |
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Markets |
<div class="ArticleBody-articleBody" data-analytics="RegularArticle-articleBody-5-2" data-module="ArticleBody" data-test="articleBody-2" id="RegularArticle-ArticleBody-5"><span class="HighlightShare-hidden" style="top:0;left:0"></span><div aria-labelledby="Placeholder-ArticleBody-Video-102717673" role="region"><div class="PlaceHolder-wrapper" data-test="VideoPlaceHolder" data-vilynx-id="3000384110" id="Placeholder-ArticleBody-Video-102717673" role="button" tabindex="0"><div class="InlineVideo-videoEmbed" data-test="InlineVideo" id="InlineVideo-0"><div class="InlineVideo-wrapper"><div class="InlineVideo-inlineThumbnailContainer"><img alt="Volatility from Greece is good: Pro " class="InlineVideo-videoThumbnail" src="https://image.cnbcfm.com/api/v1/image/102717674-1e1992a198775a335068fcb56e460ab49f5ff4a4.jpg?v=1529468579&w=750&h=422&vtcrop=y"/><span class="InlineVideo-videoButton"></span><span><div class="undefined PlayButton-container" data-test="PlayButton"><div class="PlayButton-featured PlayButton-base" data-type="play"><span class="PlayButton-flyout">watch now</span><span class="icon-play-triangle PlayButton-icon"></span></div></div></span></div><div class="InlineVideo-videoFooter"><div class="InlineVideo-videoDurationContainer"><span class="InlineVideo-videoLabel">VIDEO</span><span class="InlineVideo-videoDurationWithLeading0">6:36</span><span class="InlineVideo-videoDuration InlineVideo-videoLabel">06:36</span></div><div class="InlineVideo-title">Volatility from Greece is good: Pro </div></div></div></div><div class="PlaceHolder-endCard PlaceHolder-inactive"></div></div></div><div class="group"><p> There is a currency war going on—one in which the <a href="https://www.cnbc.com/2015/03/18/the-federal-reserve-cnbc-explains.html">Federal Reserve</a> is the least able to play, said David Woo, head of global interest rates and currencies research at Bank of America Merrill Lynch, on Friday.</p><p> The <a href="https://www.cnbc.com/central-banks/">European Central Bank</a> statement during a dinner last week regarding the purchase of more bonds is a strong signal it doesn't want the euro to go back over $1.15, said Woo during an interview with CNBC's "<a href="https://www.cnbc.com/squawk-on-the-street/">Squawk on the Street</a>." </p><div class="lazyload-placeholder" style="height:100%"></div><p> "You could argue that the U.S. got back on the street playing that game," explained Woo. "Now, the U.S. cannot tell others they cannot play this game." </p><p> <span class="label-read-more">Read More</span> <a href="https://www.cnbc.com/2015/05/29/europe-markets-wobbly-on-greek-uncertainty.html">Europe shares close sharply lower on Greek fears</a><br/></p><p> With inflation picking up and better performance from U.S. companies, the <a href="https://www.cnbc.com/federal-reserve/">Fed </a> has less of a reason to get engaged in this war at the moment, said Woo. </p></div><div class="InlineImage-imageEmbed" data-test="InlineImage" id="ArticleBody-InlineImage-102317625"><div class="InlineImage-wrapper"><div class="InlineImage-imagePlaceholder" style="padding-bottom:55.55555555555556%"><div class="lazyload-placeholder" style="height:100%"></div></div><div><div class="InlineImage-imageEmbedCaption">A woman walks past an exchange office in Moscow.</div><div class="InlineImage-imageEmbedCredit">Vasily Maximov | AFP | Getty Images</div></div></div></div><div class="group"><p> As the deadline for a debt payment by Greece draws closer, the volatility of currencies has increased. The country is supposed to pay about 300 million euros ($329 million) to the <a href="https://www.cnbc.com/id/10000936">International Monetary Fund</a> on June 5, but creditors have been worried about Greece's ability to make the payment. </p><p> Woo added that the latest data show 5.6 billion euros leaving the Greek banking system for elsewhere—double the March figure. He added that this might force a showdown into the end of June. </p><div class="lazyload-placeholder" style="height:100%"></div><p> Meanwhile, Wells Fargo's Scott Wren, also on "Squawk on the Street," said that the volatility was creating more of a chance to buy stocks. </p><p> "Volatility is going to hopefully cause more buying opportunities. Even in a worst-case scenario for <a href="https://www.cnbc.com/id/10000275">Greece</a>, which I don't think is going to happen, they are going to Band-Aid this thing and kick it down the road," said Wren. </p><p> <span class="label-read-more">Read More</span><a href="https://www.cnbc.com/2015/05/29/greek-talks-progressingso-wheres-the-deal.html">Greek talks 'progressing'…so where's the deal?</a><br/></p><p> Woo said that his biggest worry is Asia, especially China. With the Chinese yuan one of the strongest currencies and Germany's exposure to China, there might be some problems for the euro. </p><p> "I think the euro will have an issue," said Woo. "German exposure is more than U.S exposure to China." </p></div><div class="MobileAdhesion-container" data-module="mps-slot" id="ArticleBody-MobileAdhesion"></div></div> |
watch nowVIDEO6:3606:36Volatility from Greece is good: Pro There is a currency war going on—one in which the Federal Reserve is the least able to play, said David Woo, head of global interest rates and currencies research at Bank of America Merrill Lynch, on Friday. The European Central Bank statement during a dinner last week regarding the purchase of more bonds is a strong signal it doesn't want the euro to go back over $1.15, said Woo during an interview with CNBC's "Squawk on the Street." "You could argue that the U.S. got back on the street playing that game," explained Woo. "Now, the U.S. cannot tell others they cannot play this game." Read More Europe shares close sharply lower on Greek fears With inflation picking up and better performance from U.S. companies, the Fed has less of a reason to get engaged in this war at the moment, said Woo. A woman walks past an exchange office in Moscow.Vasily Maximov | AFP | Getty Images As the deadline for a debt payment by Greece draws closer, the volatility of currencies has increased. The country is supposed to pay about 300 million euros ($329 million) to the International Monetary Fund on June 5, but creditors have been worried about Greece's ability to make the payment. Woo added that the latest data show 5.6 billion euros leaving the Greek banking system for elsewhere—double the March figure. He added that this might force a showdown into the end of June. Meanwhile, Wells Fargo's Scott Wren, also on "Squawk on the Street," said that the volatility was creating more of a chance to buy stocks. "Volatility is going to hopefully cause more buying opportunities. Even in a worst-case scenario for Greece, which I don't think is going to happen, they are going to Band-Aid this thing and kick it down the road," said Wren. Read MoreGreek talks 'progressing'…so where's the deal? Woo said that his biggest worry is Asia, especially China. With the Chinese yuan one of the strongest currencies and Germany's exposure to China, there might be some problems for the euro. "I think the euro will have an issue," said Woo. "German exposure is more than U.S exposure to China." |
cebdda09-279e-5199-9796-bfbecbabc2ca |
2024-09-07 |
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| Why HK property won’t bring down its economy |
https://www.cnbc.com/2015/02/05/how-hong-kong-property-will-affect-the-economy.html |
2015-02-05 22:46:05+00:00 |
Leslie Shaffer |
CNBC |
Hong Kong's property sector may face dire predictions of a crash after breakneck pace of price increases in recent years, but that wouldn't be an Armageddon scenario for the economy, market watchers said. |
cnbc, Articles, Central banking, Federal Reserve System, World economy, Real estate, Mortgages, Banks, Citigroup Inc, Moody's Corp, US Dollar/Hong Kong Dollar FX Spot Rate, Real Estate, The Fed, Central Banks, World Economy, Hong Kong Dollar, Construction, DO NOT USE Consumer, Business News, Housing, source:tagname:CNBC Asia Source |
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Business News |
<div class="ArticleBody-articleBody" data-analytics="RegularArticle-articleBody-5-2" data-module="ArticleBody" data-test="articleBody-2" id="RegularArticle-ArticleBody-5"><span class="HighlightShare-hidden" style="top:0;left:0"></span><div class="InlineImage-imageEmbed" data-test="InlineImage" id="ArticleBody-InlineImage-102395347"><div class="InlineImage-wrapper"><div class="InlineImage-imagePlaceholder" style="padding-bottom:55.55555555555556%"><div class="lazyload-placeholder" style="height:100%"></div></div><div><div class="InlineImage-imageEmbedCaption">Residential buildings seen through a construction crane stand in the West Kowloon district of Hong Kong</div><div class="InlineImage-imageEmbedCredit">Jerome Favre | Bloomberg | Getty Images</div></div></div></div><div class="group"><p> Hong Kong's property sector may face dire predictions of a crash after the breakneck pace of price increases in recent years, but that wouldn't be an Armageddon scenario for the economy, market watchers said. <br/></p><p> "With the Federal Reserve set to tighten policy this year and growth likely to slow further in the mainland, there are rising concerns about a possible collapse in house prices," Chang Liu, an economist at Capital Economics, said in a note Tuesday. "While the economy would be weakened if this happened, we would not expect to see a severe and protracted economic downturn."</p><div class="lazyload-placeholder" style="height:100%"></div><p> <span class="label-read-more">Read More</span> <a href="https://www.cnbc.com/2014/12/02/hong-kong-is-in-a-recession-expert.html">Hong Kong is in a recession: Expert</a><br/></p><p> Hong Kong's property prices have more than doubled since 2009, pushing them to levels higher compared with average incomes than prior to the 1997 crash amid the Asian financial crisis, he said. In December, Hong Kong's private home price index climbed to a record high, up 13 percent on-year, after rising for nine straight months, according to official data released Thursday.</p><p> The city is largely captive to U.S. monetary policy as it has <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-2"><a href="/quotes/HKD=/">pegged its currency</a><span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" data-analytics-id="-WatchlistDropdown" id="-WatchlistDropdown"><button aria-label="Add To Watchlist" class="AddToWatchlistButton-watchlistButton" data-testid="dropdown-btn"><span class="AddToWatchlistButton-addWatchListFromTag"></span></button></span></span></span> to the greenback and tighter Fed policy would push up mortgage rates in Hong Kong, Chang noted, adding that at the same time, mainlanders are buying fewer properties. </p><p> The banking sector, private consumption and construction are the main ways a crash would hit the economy, he noted.</p></div><div class="group"><p> Banks may be cushioned by low loan-to-value ratios averaging around 55 percent for last year's new mortgages as well as government efforts to rein in speculators, keeping delinquency ratios low, Chang said. </p><div class="lazyload-placeholder" style="height:100%"></div><p> In addition, studies suggest every percentage-point decline in home prices causes a 0.1 percentage-point fall in the city's private consumption growth, Chang said, noting that the 70 percent price drop in the 1997 crash lowered consumption growth by 7-8 percent over five years. </p><p> "While the impact is sizable, it also suggests that even a total collapse in house prices would be unlikely to lead to a slump in private consumption," he said.</p><p> <span class="label-read-more">Read More</span> <a href="https://www.cnbc.com/2015/01/08/is-a-test-of-singapores-property-market-nigh.html">Is a test of Singapore's property market nigh?</a><br/></p><p> Construction, meanwhile, accounts for only around 4 percent of gross domestic product (GDP), suggesting a collapse there would be "manageable" for the economy, Chang said. </p><p> To be sure, the concern may be academic, with home prices rallying around 13 percent after hitting a bottom in the middle of last year. </p><p> Citigroup is more concerned the government may introduce further cooling measures to contain prices as the Federal Reserve increase interest rates at a slower-than-expected pace. </p><p> But it's still positive on the city's residential property market over the next year.</p></div><div class="group"><p>"Further tightening may cool the property market only for a short while," <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-4"><a href="/quotes/C/">Citigroup</a><span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" data-analytics-id="-WatchlistDropdown" id="-WatchlistDropdown"><button aria-label="Add To Watchlist" class="AddToWatchlistButton-watchlistButton" data-testid="dropdown-btn"><span class="AddToWatchlistButton-addWatchListFromTag"></span></button></span></span></span> said in a note Tuesday. "We expect the annual supply shortage of over 6,000 units to continue for the next three years. Families that do not buy a house would opt for a lease, which would drive up the rental rates – another support to physical home prices."<br/></p><p> Others note Hong Kong's banks will be getting an additional buffer if credit turns sour. Moody's tips a "credit positive" from the monetary authorities' move last week to make the city's banks will be subject to a "countercyclical buffer" of 0.625 percent, starting next year.</p><p> "The authorities' objective in setting the countercyclical buffer is for banks to accumulate additional capital during periods of fast credit growth that will help them when the cycle turns," Sonny Hsu, senior analyst at <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-5"><a href="/quotes/MCO/">Moody's</a><span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" data-analytics-id="-WatchlistDropdown" id="-WatchlistDropdown"><button aria-label="Add To Watchlist" class="AddToWatchlistButton-watchlistButton" data-testid="dropdown-btn"><span class="AddToWatchlistButton-addWatchListFromTag"></span></button></span></span></span>, said in a note this week. </p><p> <em>—By CNBC.Com's Leslie Shaffer; Follow her on Twitter</em> <a href="https://twitter.com/LeslieShaffer1" target="_blank">@LeslieShaffer1</a></p></div><div class="MobileAdhesion-container" data-module="mps-slot" id="ArticleBody-MobileAdhesion"></div></div> |
Residential buildings seen through a construction crane stand in the West Kowloon district of Hong KongJerome Favre | Bloomberg | Getty Images Hong Kong's property sector may face dire predictions of a crash after the breakneck pace of price increases in recent years, but that wouldn't be an Armageddon scenario for the economy, market watchers said. "With the Federal Reserve set to tighten policy this year and growth likely to slow further in the mainland, there are rising concerns about a possible collapse in house prices," Chang Liu, an economist at Capital Economics, said in a note Tuesday. "While the economy would be weakened if this happened, we would not expect to see a severe and protracted economic downturn." Read More Hong Kong is in a recession: Expert Hong Kong's property prices have more than doubled since 2009, pushing them to levels higher compared with average incomes than prior to the 1997 crash amid the Asian financial crisis, he said. In December, Hong Kong's private home price index climbed to a record high, up 13 percent on-year, after rising for nine straight months, according to official data released Thursday. The city is largely captive to U.S. monetary policy as it has pegged its currency to the greenback and tighter Fed policy would push up mortgage rates in Hong Kong, Chang noted, adding that at the same time, mainlanders are buying fewer properties. The banking sector, private consumption and construction are the main ways a crash would hit the economy, he noted. Banks may be cushioned by low loan-to-value ratios averaging around 55 percent for last year's new mortgages as well as government efforts to rein in speculators, keeping delinquency ratios low, Chang said. In addition, studies suggest every percentage-point decline in home prices causes a 0.1 percentage-point fall in the city's private consumption growth, Chang said, noting that the 70 percent price drop in the 1997 crash lowered consumption growth by 7-8 percent over five years. "While the impact is sizable, it also suggests that even a total collapse in house prices would be unlikely to lead to a slump in private consumption," he said. Read More Is a test of Singapore's property market nigh? Construction, meanwhile, accounts for only around 4 percent of gross domestic product (GDP), suggesting a collapse there would be "manageable" for the economy, Chang said. To be sure, the concern may be academic, with home prices rallying around 13 percent after hitting a bottom in the middle of last year. Citigroup is more concerned the government may introduce further cooling measures to contain prices as the Federal Reserve increase interest rates at a slower-than-expected pace. But it's still positive on the city's residential property market over the next year."Further tightening may cool the property market only for a short while," Citigroup said in a note Tuesday. "We expect the annual supply shortage of over 6,000 units to continue for the next three years. Families that do not buy a house would opt for a lease, which would drive up the rental rates – another support to physical home prices." Others note Hong Kong's banks will be getting an additional buffer if credit turns sour. Moody's tips a "credit positive" from the monetary authorities' move last week to make the city's banks will be subject to a "countercyclical buffer" of 0.625 percent, starting next year. "The authorities' objective in setting the countercyclical buffer is for banks to accumulate additional capital during periods of fast credit growth that will help them when the cycle turns," Sonny Hsu, senior analyst at Moody's, said in a note this week. —By CNBC.Com's Leslie Shaffer; Follow her on Twitter @LeslieShaffer1 |
88a210a7-3fbf-5fbc-9f39-0888c39d56f3 |
2024-09-07 |
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| Countries in the massive Pacific trade deal are pushing ahead, but US is 'welcome' to return |
https://www.cnbc.com/2018/02/28/new-tpp-pacific-trade-countries-arent-waiting-on-trump.html |
2018-03-01 04:32:11+00:00 |
Nyshka Chandran |
CNBC |
"The clock isn't ticking" on the prospect of a U.S. return, Steven Ciobo, Australia's minister for trade, tourism and investment told CNBC. |
cnbc, Articles, Australia, China, Steven Mnuchin, Donald Trump, World economy, Asia News, White House, Economy, Politics, World Economy, Business News, source:tagname:CNBC Asia Source |
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Business News |
<div class="ArticleBody-articleBody" data-analytics="RegularArticle-articleBody-5-2" data-module="ArticleBody" data-test="articleBody-2" id="RegularArticle-ArticleBody-5"><span class="HighlightShare-hidden" style="top:0;left:0"></span><div aria-labelledby="Placeholder-ArticleBody-Video-105033630" role="region"><div class="PlaceHolder-wrapper" data-test="VideoPlaceHolder" data-vilynx-id="7000002581" id="Placeholder-ArticleBody-Video-105033630" role="button" tabindex="0"><div class="InlineVideo-videoEmbed" data-test="InlineVideo" id="InlineVideo-0"><div class="InlineVideo-wrapper"><div class="InlineVideo-inlineThumbnailContainer"><img alt="TPP is a great win 'for all 11 countries' in the deal" class="InlineVideo-videoThumbnail" src="https://image.cnbcfm.com/api/v1/image/105036186-4ED2-SSA-StevenCiobb-022818.jpg?v=1529477624&w=750&h=422&vtcrop=y"/><span class="InlineVideo-videoButton"></span><span><div class="undefined PlayButton-container" data-test="PlayButton"><div class="PlayButton-featured PlayButton-base" data-type="play"><span class="PlayButton-flyout">watch now</span><span class="icon-play-triangle PlayButton-icon"></span></div></div></span></div><div class="InlineVideo-videoFooter"><div class="InlineVideo-videoDurationContainer"><span class="InlineVideo-videoLabel">VIDEO</span><span class="InlineVideo-videoDurationWithLeading0">3:30</span><span class="InlineVideo-videoDuration InlineVideo-videoLabel">03:30</span></div><div class="InlineVideo-title">TPP is a great win 'for all 11 countries' in the deal</div><div class="InlineVideo-section"><a href="https://www.cnbc.com/street-signs-asia/">Street Signs Asia</a></div></div></div></div><div class="PlaceHolder-endCard PlaceHolder-inactive"></div></div></div><div class="group"><p>More than a year since President <a href="https://www.cnbc.com/donald-trump/">Donald Trump</a> threw a wrench into a free trade deal once pegged as the world's largest, remaining countries have finally cemented <a href="https://www.cnbc.com/2018/02/21/final-version-of-trans-pacific-trade-deal-released-rules-pushed-by-us-on-ice.html">a new agreement without the United States.</a></p><p>The finalized framework — known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership — gets signed on March 8.</p><div class="lazyload-placeholder" style="height:100%"></div><p>Ahead of that, Trump's administration has been loosely signaling a possible change of heart. But participating member nations aren't waiting around.</p><p><span>"The clock isn't ticking" on the prospect of a U.S. return, Steven Ciobo, <a href="https://www.cnbc.com/australia/">Australia's</a> minister for trade, tourism and investment told CNBC on Thursday. He added that existing members "are pushing forward with putting this deal in effect."</span></p><p><span>All 11 countries "would like to welcome the United States back to the table" but that remains a domestic decision for the White House, Ciobo continued.</span></p></div><h2 class="ArticleBody-subtitle"><a id="headline0"></a>Trump says he wants 'substantially better'</h2><div class="group"><p>In January, Trump told CNBC that he would reconsider joining the multilateral pact <a href="https://www.cnbc.com/2018/01/25/trump-says-he-would-reconsider-trans-pacific-partnership-trade-deal.html">if the U.S. got a "substantially better deal."</a> And speaking on Tuesday, Treasury Secretary <a href="https://www.cnbc.com/steven-mnuchin/">Steven Mnuchin</a> said returning to the TPP "is something the President will consider."</p><p>Trump <a href="https://www.cnbc.com/2017/07/18/trans-pacific-partnership-members-look-to-move-on-without-us.html">withdrew from the original pact in January 2017</a><span>, claiming it did not benefit the U.S. He's called the TPP "the worst trade deal in the history of the country," one that's been "pushed by special interests who want to rape our country."</span></p><div class="lazyload-placeholder" style="height:100%"></div><p>The new deal has "open architecture" and welcomes all interested countries, Ciobo said. And while "there isn't a definitive shot clock or a time countdown for the U.S. to rejoin," he noted that "it would be good for them" and "good for the 11 of us."</p><p>The deal includes Australia and countries from the Americas and Asia. <a href="https://www.cnbc.com/china/">China</a> is a not yet a member.</p></div><div class="MobileAdhesion-container" data-module="mps-slot" id="ArticleBody-MobileAdhesion"></div></div> |
watch nowVIDEO3:3003:30TPP is a great win 'for all 11 countries' in the dealStreet Signs AsiaMore than a year since President Donald Trump threw a wrench into a free trade deal once pegged as the world's largest, remaining countries have finally cemented a new agreement without the United States.The finalized framework — known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership — gets signed on March 8.Ahead of that, Trump's administration has been loosely signaling a possible change of heart. But participating member nations aren't waiting around."The clock isn't ticking" on the prospect of a U.S. return, Steven Ciobo, Australia's minister for trade, tourism and investment told CNBC on Thursday. He added that existing members "are pushing forward with putting this deal in effect."All 11 countries "would like to welcome the United States back to the table" but that remains a domestic decision for the White House, Ciobo continued.Trump says he wants 'substantially better'In January, Trump told CNBC that he would reconsider joining the multilateral pact if the U.S. got a "substantially better deal." And speaking on Tuesday, Treasury Secretary Steven Mnuchin said returning to the TPP "is something the President will consider."Trump withdrew from the original pact in January 2017, claiming it did not benefit the U.S. He's called the TPP "the worst trade deal in the history of the country," one that's been "pushed by special interests who want to rape our country."The new deal has "open architecture" and welcomes all interested countries, Ciobo said. And while "there isn't a definitive shot clock or a time countdown for the U.S. to rejoin," he noted that "it would be good for them" and "good for the 11 of us."The deal includes Australia and countries from the Americas and Asia. China is a not yet a member. |
db9f4fab-872e-56fc-b061-3abee433592a |
2024-09-07 |
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| To get tough on China, Trump may throw out the trade rulebook |
https://www.cnbc.com/2017/01/05/trade-with-china-trump-may-get-tough-by-bypassing-the-wto.html |
2017-01-05 14:46:22+00:00 |
Evelyn Cheng |
CNBC |
"I could certainly see this group promoting tariffs that are not WTO-consistent," says a former assistant U.S. trade representative for China affairs. |
cnbc, Articles, China, Donald Trump, Politics, Trade, World economy, World Economy, US: News, Law and Regulation, Regulations, source:tagname:CNBC US Source |
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Politics |
<div class="ArticleBody-articleBody" data-analytics="RegularArticle-articleBody-5-2" data-module="ArticleBody" data-test="articleBody-2" id="RegularArticle-ArticleBody-5"><span class="HighlightShare-hidden" style="top:0;left:0"></span><div aria-labelledby="Placeholder-ArticleBody-Video-104197363" role="region"><div class="PlaceHolder-wrapper" data-test="VideoPlaceHolder" data-vilynx-id="3000580838" id="Placeholder-ArticleBody-Video-104197363" role="button" tabindex="0"><div class="InlineVideo-videoEmbed" data-test="InlineVideo" id="InlineVideo-0"><div class="InlineVideo-wrapper"><div class="InlineVideo-inlineThumbnailContainer"><img alt="Malek: Lighthizer consistent with Trump's Cabinet picks" class="InlineVideo-videoThumbnail" src="https://image.cnbcfm.com/api/v1/image/104201559-GettyImages-610600382.jpg?v=1529473790&w=750&h=422&vtcrop=y"/><span class="InlineVideo-videoButton"></span><span><div class="undefined PlayButton-container" data-test="PlayButton"><div class="PlayButton-featured PlayButton-base" data-type="play"><span class="PlayButton-flyout">watch now</span><span class="icon-play-triangle PlayButton-icon"></span></div></div></span></div><div class="InlineVideo-videoFooter"><div class="InlineVideo-videoDurationContainer"><span class="InlineVideo-videoLabel">VIDEO</span><span class="InlineVideo-videoDurationWithLeading0">3:42</span><span class="InlineVideo-videoDuration InlineVideo-videoLabel">03:42</span></div><div class="InlineVideo-title">Malek: Lighthizer consistent with Trump's Cabinet picks</div><div class="InlineVideo-section"><a href="https://www.cnbc.com/closing-bell/">Closing Bell</a></div></div></div></div><div class="PlaceHolder-endCard PlaceHolder-inactive"></div></div></div><div class="group"><p> The latest addition to President-elect <a href="https://www.cnbc.com/donald-trump/">Donald Trump</a>'s circle of trade advisors shows that the new administration is focused on China in a big way — and it could even go beyond what the World Trade Organization allows.</p><p> Trump announced Tuesday he intends to nominate lawyer Robert Lighthizer as U.S. trade representative. A proponent of a tough U.S. position on <a href="https://www.cnbc.com/china/">China</a>, Lighthizer has negotiated restrictions on steel imports and was deputy U.S. trade representative in the Reagan administration. </p><div class="lazyload-placeholder" style="height:100%"></div><p> Ideologically, that puts Lighthizer on the same page as <a href="https://www.cnbc.com/2016/12/22/who-is-peter-navarro-trump-advisor-wants-to-get-tough-on-china-trade.html">Peter Navarro, author of "Death by China"</a> and Trump's appointee to head the newly created National Trade Council. Trump's pick for Commerce secretary, billionaire <a href="https://www.cnbc.com/wilbur-ross/">Wilbur Ross</a>, will also be involved with the trade council. </p><p> "I could certainly see this group promoting tariffs that are not WTO-consistent and saying, 'Who gives a damn,'" said Charles Freeman III, managing director at consulting firm Bower Group Asia and former assistant U.S. trade representative for China affairs. </p><p> "Lighthizer comes from the days before WTO … and a lot of trade people who come from before that era regularly talk about WTO as unilateral disarmament," Freeman said.<br/></p><p> The Trump transition team and Lighthizer did not respond to CNBC requests for comment.<br/></p><br/></div><blockquote data-test="Pullquote"><div class="Pullquote-pullquote" style="border-top-color:#002f6c"><div class="Pullquote-quotemark"><span class="Pullquote-quotemark1"></span><span class="Pullquote-quotemark2"></span></div><div><div class="Pullquote-quote">Is free trade really making global markets more efficient? Is it promoting our values and making America stronger? Or is it simply strengthening our adversaries and creating a world where countries who abuse the system — such as China — are on the road to economic and military dominance?</div><div class="Pullquote-sourceWrapper"><div class="Pullquote-sourceAccentWrapper"></div><div class="Pullquote-source">Robert Lighthizer</div><div class="Pullquote-info">U.S. trade representative pick in a 2011 Op-Ed</div></div></div></div></blockquote><div class="group"><p> The WTO was formed in 1995 and consists of a set of trade agreements negotiated and signed by its members. Those policies support free trade of goods and services across borders and oppose governments attempting to protect national industries with subsidies and taxes on imports. </p><div class="lazyload-placeholder" style="height:100%"></div><p>But critics say countries like China have been unfairly allowed to reap benefits without cutting back on its own protectionist policies, to the harm of other members like the United States. <br/></p><p>China was admitted to the WTO in 2001, and millions of U.S. manufacturing jobs fled the country for China in the months and years that followed.</p><p> Lighthizer is one of those free trade critics. In the closing paragraph of a <a href="http://www.washingtontimes.com/news/2011/may/9/donald-trump-is-no-liberal-on-trade/" target="_blank">2011 opinion piece in The Washington Times</a>, he wrote: </p><div class="ArticleBody-blockquote"> <p> Given the current financial crisis and the widespread belief that the 21st century will belong to China, is free trade really making global markets more efficient? Is it promoting our values and making America stronger? Or is it simply strengthening our adversaries and creating a world where countries who abuse the system — such as China — are on the road to economic and military dominance? If Mr. Trump's potential campaign does nothing more than force a real debate on those questions, it will have done a service to both the Republican Party and the country.<br/> </p></div><p> "I think you're setting up both a philosophical and a practical way in which the U.S. government [is going] to renegotiate trade agreements both with and without WTO," said Gregory Husisian, chair of law firm Foley & Lardner's export controls and national security practice. </p><p> "It's going to be a continuation of the steel trade wars and expansion of that to cover more products," he said. </p><p> Under the Reagan administration in the 1980s, Lighthizer threatened quotas and punitive tariffs on Japan to help reduce imports into the United States. At the time, the U.S. government also enacted "voluntary export restraint" programs which limited auto imports from Japan and global steel imports in the 1980s. </p></div><div aria-labelledby="Placeholder-ArticleBody-Video-104196617" role="region"><div class="PlaceHolder-wrapper" data-test="VideoPlaceHolder" data-vilynx-id="3000580702" id="Placeholder-ArticleBody-Video-104196617" role="button" tabindex="0"><div class="InlineVideo-videoEmbed" data-test="InlineVideo" id="InlineVideo-0"><div class="InlineVideo-wrapper"><div class="InlineVideo-inlineThumbnailContainer"><img alt="Trump picks Robert Lighthizer for US trade rep." class="InlineVideo-videoThumbnail" src="https://image.cnbcfm.com/api/v1/image/104086101-GettyImages-55994134.jpg?v=1532563992&w=750&h=422&vtcrop=y"/><span class="InlineVideo-videoButton"></span><span><div class="undefined PlayButton-container" data-test="PlayButton"><div class="PlayButton-featured PlayButton-base" data-type="play"><span class="PlayButton-flyout">watch now</span><span class="icon-play-triangle PlayButton-icon"></span></div></div></span></div><div class="InlineVideo-videoFooter"><div class="InlineVideo-videoDurationContainer"><span class="InlineVideo-videoLabel">VIDEO</span><span class="InlineVideo-videoDurationWithLeading0">1:52</span><span class="InlineVideo-videoDuration InlineVideo-videoLabel">01:52</span></div><div class="InlineVideo-title">Trump picks Robert Lighthizer for US trade rep.</div><div class="InlineVideo-section"><a href="https://www.cnbc.com/squawk-alley/">Squawk Alley</a></div></div></div></div><div class="PlaceHolder-endCard PlaceHolder-inactive"></div></div></div><div class="group"><p> Lighthizer then spent nearly three decades as a lawyer representing U.S. steelmakers and other companies in anti-dumping and anti-subsidy cases. </p><p> "Lighthizer is the only one who has any trade law experience, and his trade law experience is pretty darn deep. Not everyone in the trade community is a fan," Freeman said, also saying that Lighthizer is "a very respected, and frankly feared, trade lawyer in this town."<br/></p><p> With Trump yet to take office, it's still unclear how far the new administration will push past existing trade frameworks such as the WTO. </p></div><div class="InlineImage-imageEmbed" data-test="InlineImage" id="ArticleBody-InlineImage-104199452"><div class="InlineImage-wrapper"><div class="InlineImage-imagePlaceholder" style="padding-bottom:55.55555555555556%"><div class="lazyload-placeholder" style="height:100%"></div></div><div><div class="InlineImage-imageEmbedCaption">A Chinese magazine with a front page story naming US President-elect Donald Trump as their Person of the Year is seen at a news stand in Beijing on December 29, 2016.</div><div class="InlineImage-imageEmbedCredit">Greg Baker | AFP | Getty Images</div></div></div></div><div class="group"><p> Lighthizer "seems to be talking about doing things that are within the existing rules," said Edward Alden, Bernard L. Schwartz senior fellow at the Council on Foreign Relations and author of "Failure to Adjust: How Americans Got Left Behind in the Global Economy."</p><p> "He's talking about a range of more aggressive action. He does not talk about tariffs across the board," Alden said. </p><p> <em>— Reuters contributed to this report.</em></p></div><div class="MobileAdhesion-container" data-module="mps-slot" id="ArticleBody-MobileAdhesion"></div></div> |
watch nowVIDEO3:4203:42Malek: Lighthizer consistent with Trump's Cabinet picksClosing Bell The latest addition to President-elect Donald Trump's circle of trade advisors shows that the new administration is focused on China in a big way — and it could even go beyond what the World Trade Organization allows. Trump announced Tuesday he intends to nominate lawyer Robert Lighthizer as U.S. trade representative. A proponent of a tough U.S. position on China, Lighthizer has negotiated restrictions on steel imports and was deputy U.S. trade representative in the Reagan administration. Ideologically, that puts Lighthizer on the same page as Peter Navarro, author of "Death by China" and Trump's appointee to head the newly created National Trade Council. Trump's pick for Commerce secretary, billionaire Wilbur Ross, will also be involved with the trade council. "I could certainly see this group promoting tariffs that are not WTO-consistent and saying, 'Who gives a damn,'" said Charles Freeman III, managing director at consulting firm Bower Group Asia and former assistant U.S. trade representative for China affairs. "Lighthizer comes from the days before WTO … and a lot of trade people who come from before that era regularly talk about WTO as unilateral disarmament," Freeman said. The Trump transition team and Lighthizer did not respond to CNBC requests for comment.Is free trade really making global markets more efficient? Is it promoting our values and making America stronger? Or is it simply strengthening our adversaries and creating a world where countries who abuse the system — such as China — are on the road to economic and military dominance?Robert LighthizerU.S. trade representative pick in a 2011 Op-Ed The WTO was formed in 1995 and consists of a set of trade agreements negotiated and signed by its members. Those policies support free trade of goods and services across borders and oppose governments attempting to protect national industries with subsidies and taxes on imports. But critics say countries like China have been unfairly allowed to reap benefits without cutting back on its own protectionist policies, to the harm of other members like the United States. China was admitted to the WTO in 2001, and millions of U.S. manufacturing jobs fled the country for China in the months and years that followed. Lighthizer is one of those free trade critics. In the closing paragraph of a 2011 opinion piece in The Washington Times, he wrote: Given the current financial crisis and the widespread belief that the 21st century will belong to China, is free trade really making global markets more efficient? Is it promoting our values and making America stronger? Or is it simply strengthening our adversaries and creating a world where countries who abuse the system — such as China — are on the road to economic and military dominance? If Mr. Trump's potential campaign does nothing more than force a real debate on those questions, it will have done a service to both the Republican Party and the country. "I think you're setting up both a philosophical and a practical way in which the U.S. government [is going] to renegotiate trade agreements both with and without WTO," said Gregory Husisian, chair of law firm Foley & Lardner's export controls and national security practice. "It's going to be a continuation of the steel trade wars and expansion of that to cover more products," he said. Under the Reagan administration in the 1980s, Lighthizer threatened quotas and punitive tariffs on Japan to help reduce imports into the United States. At the time, the U.S. government also enacted "voluntary export restraint" programs which limited auto imports from Japan and global steel imports in the 1980s. watch nowVIDEO1:5201:52Trump picks Robert Lighthizer for US trade rep.Squawk Alley Lighthizer then spent nearly three decades as a lawyer representing U.S. steelmakers and other companies in anti-dumping and anti-subsidy cases. "Lighthizer is the only one who has any trade law experience, and his trade law experience is pretty darn deep. Not everyone in the trade community is a fan," Freeman said, also saying that Lighthizer is "a very respected, and frankly feared, trade lawyer in this town." With Trump yet to take office, it's still unclear how far the new administration will push past existing trade frameworks such as the WTO. A Chinese magazine with a front page story naming US President-elect Donald Trump as their Person of the Year is seen at a news stand in Beijing on December 29, 2016.Greg Baker | AFP | Getty Images Lighthizer "seems to be talking about doing things that are within the existing rules," said Edward Alden, Bernard L. Schwartz senior fellow at the Council on Foreign Relations and author of "Failure to Adjust: How Americans Got Left Behind in the Global Economy." "He's talking about a range of more aggressive action. He does not talk about tariffs across the board," Alden said. — Reuters contributed to this report. |
17daff6e-0a22-525c-a295-f0091cb94273 |
2024-09-07 |
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| Oil firms Apache and Total make major discovery offshore Suriname |
https://www.cnbc.com/2020/01/07/oil-firms-apache-and-total-make-major-discovery-offshore-suriname.html |
2020-01-07 13:49:00+00:00 |
|
CNBC |
Oil companies Apache Corp. and Total said that they had made a major oil discovery at an offshore well and confirmed a geologic model with 240 feet of oil pay and 164 feet of light oil and gas condensate pay. |
cnbc, Articles, World Markets, World economy, Oil and Gas, Energy, APA Corp (US), TotalEnergies SE, World Economy, Business News, source:tagname:Reuters |
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Business News |
<div class="ArticleBody-articleBody" data-analytics="RegularArticle-articleBody-5-2" data-module="ArticleBody" data-test="articleBody-2" id="RegularArticle-ArticleBody-5"><span class="HighlightShare-hidden" style="top:0;left:0"></span><div class="InlineImage-imageEmbed" data-test="InlineImage" id="ArticleBody-InlineImage-106324316"><div class="InlineImage-wrapper"><div class="InlineImage-imagePlaceholder" style="padding-bottom:55.55555555555556%"><div class="lazyload-placeholder" style="height:100%"></div></div><div><div class="InlineImage-imageEmbedCaption">A worker with Apache Corp. is viewed at the Patterson 298 natural gas fueled drilling rig on land in the Permian Basin on February 5, 2015 in Mentone, Texas.</div><div class="InlineImage-imageEmbedCredit">Spencer Platt | Getty Images</div></div></div></div><div class="group"><p><span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-1"><a href="/quotes/APA/">Apache Corp.</a><span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" data-analytics-id="-WatchlistDropdown" id="-WatchlistDropdown"><button aria-label="Add To Watchlist" class="AddToWatchlistButton-watchlistButton" data-testid="dropdown-btn"><span class="AddToWatchlistButton-addWatchListFromTag"></span></button></span></span></span> and <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-2"><a href="/quotes/TTE-FR/">Total</a><span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" data-analytics-id="-WatchlistDropdown" id="-WatchlistDropdown"><button aria-label="Add To Watchlist" class="AddToWatchlistButton-watchlistButton" data-testid="dropdown-btn"><span class="AddToWatchlistButton-addWatchListFromTag"></span></button></span></span></span> said on Tuesday they made a major oil discovery offshore Suriname with the closely watched Maka-Central 1 well.</p><p>Apache's exploration offshore Suriname has been on the radar as it is just over the border from an Exxon Mobil-led consortium's giant fields off Guyana, which are estimated to hold more than 6 billion barrels of oil.</p><div class="lazyload-placeholder" style="height:100%"></div><p>The Make-Central 1 well confirmed a geologic model with 73 meters (240 feet) of oil pay and 50 meters (164 feet) of light oil and gas condensate pay, and more appraisal planning was underway, Apache said in a statement.</p><p>"This appears to be a significant discovery and should be viewed very positively," RBC Capital Markets analyst Scott Hanold said.</p><p>Apache's shares rose 14.6% to $29.39 in premarket trading.</p><p>The independent U.S. oil producer's agreement with Total SA for joint development offshore Suriname included a $100 million payment at the outset, and additional pay for expenses recorded in the exploration.</p><p>Suriname was considered a long-shot for Apache, which had largely focused on a venture in a remote corner of the Permian Shale basin, the top U.S. shale formation.</p><div class="lazyload-placeholder" style="height:100%"></div><p>However, that area has required enormous infrastructure investments and delivered mostly natural gas at a time when prices for the fuel are at their lowest in more than two decades. Apache has pledged to spend 20% less this year on capital outlays than in 2019.</p><p>"We are very pleased with results from Maka Central-1. The well proves a working hydrocarbon system in the first two play types within Block 58 and confirms our geologic model with oil and condensate in shallower zones and oil in deeper zones," said Apache Chief Executive Officer and President John J. Christmann.</p></div><div class="MobileAdhesion-container" data-module="mps-slot" id="ArticleBody-MobileAdhesion"></div></div> |
A worker with Apache Corp. is viewed at the Patterson 298 natural gas fueled drilling rig on land in the Permian Basin on February 5, 2015 in Mentone, Texas.Spencer Platt | Getty ImagesApache Corp. and Total said on Tuesday they made a major oil discovery offshore Suriname with the closely watched Maka-Central 1 well.Apache's exploration offshore Suriname has been on the radar as it is just over the border from an Exxon Mobil-led consortium's giant fields off Guyana, which are estimated to hold more than 6 billion barrels of oil.The Make-Central 1 well confirmed a geologic model with 73 meters (240 feet) of oil pay and 50 meters (164 feet) of light oil and gas condensate pay, and more appraisal planning was underway, Apache said in a statement."This appears to be a significant discovery and should be viewed very positively," RBC Capital Markets analyst Scott Hanold said.Apache's shares rose 14.6% to $29.39 in premarket trading.The independent U.S. oil producer's agreement with Total SA for joint development offshore Suriname included a $100 million payment at the outset, and additional pay for expenses recorded in the exploration.Suriname was considered a long-shot for Apache, which had largely focused on a venture in a remote corner of the Permian Shale basin, the top U.S. shale formation.However, that area has required enormous infrastructure investments and delivered mostly natural gas at a time when prices for the fuel are at their lowest in more than two decades. Apache has pledged to spend 20% less this year on capital outlays than in 2019."We are very pleased with results from Maka Central-1. The well proves a working hydrocarbon system in the first two play types within Block 58 and confirms our geologic model with oil and condensate in shallower zones and oil in deeper zones," said Apache Chief Executive Officer and President John J. Christmann. |
8ec7d170-194c-5755-adb7-3f37b25a8722 |
2024-09-07 |
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| China calls for curbs on 'excessive' income and for the wealthy to give back more to society |
https://www.cnbc.com/2021/08/18/chinas-xi-emphasizes-common-prosperity-at-finance-economy-meeting.html |
2021-08-18 05:07:47+00:00 |
Evelyn Cheng |
CNBC |
Chinese President Xi Jinping led a meeting Tuesday that emphasized the concept of "common prosperity“ and preventing major financial risks, state media said. |
cnbc, Articles, Asia Economy, Politics, Market Insider, Markets, Stock markets, Xi Jinping, China Economy, China Politics, China Markets, stocks, Finance, Asia Politics, source:tagname:CNBC Asia Source |
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China Economy |
<div class="ArticleBody-articleBody" data-analytics="RegularArticle-articleBody-5-2" data-module="ArticleBody" data-test="articleBody-2" id="RegularArticle-ArticleBody-5"><span class="HighlightShare-hidden" style="top:0;left:0"></span><div class="InlineImage-imageEmbed" data-test="InlineImage" id="ArticleBody-InlineImage-106237415"><div class="InlineImage-wrapper"><div class="InlineImage-imagePlaceholder" style="padding-bottom:55.55555555555556%"><div class="lazyload-placeholder" style="height:100%"></div></div><div><div class="InlineImage-imageEmbedCaption">Chinese President Xi Jinping</div><div class="InlineImage-imageEmbedCredit">Aris Messinis | Pool | Reuters</div></div></div></div><div class="group"><p>BEIJING — Chinese President <a href="https://www.cnbc.com/xi-jinping/">Xi Jinping</a> emphasized at a finance and economic meeting Tuesday the need to support moderate wealth for all — or the <a href="https://www.cnbc.com/2021/08/12/chinas-tech-giants-generate-billions-but-squeezed-small-businesses.html">idea of "common prosperity," which analysts have said is behind the latest regulatory crackdown</a> on tech companies.</p><p>Significantly, the meeting was the first Xi led publicly since a two-week quiet period. Chinese leaders typically spend early August in secret political discussions at a resort in Beidaihe, about a three hours' drive east of Beijing.</p><div class="lazyload-placeholder" style="height:100%"></div><p>The meeting called for the "reasonable adjustment of excessive incomes and encouraging high income groups and businesses to return more to society," <a href="http://politics.people.com.cn/n1/2021/0818/c1024-32197312.html" target="_blank">state media said in Chinese</a>, according to a CNBC translation.</p></div><div aria-labelledby="Placeholder-ArticleBody-Video-106929315" role="region"><div class="PlaceHolder-wrapper" data-test="VideoPlaceHolder" data-vilynx-id="7000205345" id="Placeholder-ArticleBody-Video-106929315" role="button" tabindex="0"><div class="InlineVideo-videoEmbed" data-test="InlineVideo" id="InlineVideo-0"><div class="InlineVideo-wrapper"><div class="InlineVideo-inlineThumbnailContainer"><img alt="We're finally getting to the finish line with China regulation, says KraneShares CIO Ahern" class="InlineVideo-videoThumbnail" src="https://image.cnbcfm.com/api/v1/image/106929316-16292268031629226799-18110408060-1080pnbcnews.jpg?v=1629226802&w=750&h=422&vtcrop=y"/><span class="InlineVideo-videoButton"></span><span><div class="undefined PlayButton-container" data-test="PlayButton"><div class="PlayButton-featured PlayButton-base" data-type="play"><span class="PlayButton-flyout">watch now</span><span class="icon-play-triangle PlayButton-icon"></span></div></div></span></div><div class="InlineVideo-videoFooter"><div class="InlineVideo-videoDurationContainer"><span class="InlineVideo-videoLabel">VIDEO</span><span class="InlineVideo-videoDurationWithLeading0">3:41</span><span class="InlineVideo-videoDuration InlineVideo-videoLabel">03:41</span></div><div class="InlineVideo-title">We're finally getting to the finish line with China regulation, says KraneShares CIO Ahern</div><div class="InlineVideo-section"><a href="https://www.cnbc.com/power-lunch/">Power Lunch</a></div></div></div></div><div class="PlaceHolder-endCard PlaceHolder-inactive"></div></div></div><div class="group"><p>Leaders also specified common prosperity does not mean prosperity for just a few and is not a form of equal distribution, state media said. Rather, progress toward the goal would occur in stages, the report said.</p><p>Delivering "common prosperity" has emerged in recent months as an underlying theme of Chinese political discussion. The term is generally understood as moderate wealth for all, rather than just a few. But it remains a vague, frequently used slogan.</p><p>Yue Su, principal economist at The Economist Intelligence Unit, said in a statement she expects authorities to be pragmatic in implementation.</p><p>"Considering that raising taxes on high-income groups and capital returns may curb investment and potentially lead to capital outflows, the Chinese government will not completely ignore the impact of redistribution policies on the economy," she said.</p><div class="lazyload-placeholder" style="height:100%"></div><p>She added that privatization will likely slow in public services such as education, care for the elderly or medical care, with authorities at the very least becoming more strict in monitoring prices and affordability.</p><p>Income inequality among China's 1.4 billion people has increased over the last few decades. The top 10% of the population earned 41% of national income in 2015, up from 27% in 1978, according to <a href="https://blogs.lse.ac.uk/businessreview/2019/04/01/income-inequality-is-growing-fast-in-china-and-making-it-look-more-like-the-us/" target="_blank">estimates published in 2019 by Paris School of Economics professor Thomas Piketty and a team.</a></p><p>But the lower-earning half of the population has seen its share of national income fall to about 15%, down from about 27% in 1978.</p><p>This year, urban residents in the coastal city of Shanghai had an average per capita disposable income of 7,058 yuan ($1,091) a month, far higher than the 4,021 yuan for those in cities nationwide, and well above the 1,541 yuan for rural residents, official data showed.</p><p>The Chinese government has claimed it <a href="https://www.fmprc.gov.cn/mfa_eng/wjb_663304/zwjg_665342/zwbd_665378/t1872272.shtml" target="_blank">eliminated extreme poverty in the country</a> as of the end of last year. That marked a first step to fulfilling the <a href="http://www.xinhuanet.com/english/2017-10/17/c_136686770.htm" target="_blank">longer-term pledges</a> of the ruling Chinese Communist Party, which celebrated its 100th anniversary in July.</p></div><div class="group"><div class="RelatedContent-relatedContent" id="RegularArticle-RelatedContent-1"><div class="RelatedContent-container"><div class="RelatedContent-nonCollapsibleContent"><h2 class="RelatedContent-header">Read more about China from CNBC Pro</h2><div class="group"><p><a href="https://www.cnbc.com/2023/12/10/jpmorgan-picks-china-stocks-to-buy-now-alibabas-not-on-the-list.html">JPMorgan picks China stocks to buy now. Alibaba's not on the list</a></p><p><a href="https://www.cnbc.com/2023/11/27/portfolio-manager-says-hes-bullish-on-one-china-tech-stock.html">Portfolio manager explains why he has the 'most conviction' in this China tech stock</a></p><p><a href="https://www.cnbc.com/2023/12/03/chinas-version-of-spotify-is-underappreciated-morgan-stanley-says.html">China's version of Spotify is 'underappreciated,' Morgan Stanley says</a></p><p><a href="https://www.cnbc.com/2023/12/01/goldman-reveals-one-of-its-favorite-sectors-in-china-names-stocks.html">Goldman Sachs loves this sub-sector in China — and names 3 stocks to buy</a></p></div></div></div></div></div><div class="group"><p>"Elaborating on the 'common prosperity' objective, China has affirmed its effort to rebalance the economy toward labor, tackling social inequality with redistribution, social welfare, taxes and inclusive education," Morgan Stanley analysts said in a report distributed Wednesday, noting a target — "to increase the middle-income group's share of the economy."</p><p>Based on the top economic policy meeting, the analysts said they expect additional measures to support economic growth, such as a cut to the reserve requirement ratio.</p><p>Data for July showed China's economic growth slowed more than analysts' expected, including figures on spending by individual Chinese consumers.</p><p>However, economists have noted that growth is not as important for Beijing this year as tackling long-term problems such as a buildup of debt and risks in the vast real estate market.</p><p>"Finance is the core of the modern economy, with ties to development and security," CNBC's translation of state media said, citing Xi's remarks at Tuesday's meeting. "It must follow the principles of marketization and the rule of law, and coordinate the prevention and resolution of major financial risks."</p></div><div aria-labelledby="Placeholder-ArticleBody-Video-106842065" role="region"><div class="PlaceHolder-wrapper" data-test="VideoPlaceHolder" data-vilynx-id="7000177894" id="Placeholder-ArticleBody-Video-106842065" role="button" tabindex="0"><div class="InlineVideo-videoEmbed" data-test="InlineVideo" id="InlineVideo-0"><div class="InlineVideo-wrapper"><div class="InlineVideo-inlineThumbnailContainer"><img alt="Why are China's billionaires going under the radar?" class="InlineVideo-videoThumbnail" src="https://image.cnbcfm.com/api/v1/image/106842075-Thumbnail-Explains-China-s-Billionares-Clean-jpg?v=1613652015&w=750&h=422&vtcrop=y"/><span class="InlineVideo-videoButton"></span><span><div class="undefined PlayButton-container" data-test="PlayButton"><div class="PlayButton-featured PlayButton-base" data-type="play"><span class="PlayButton-flyout">watch now</span><span class="icon-play-triangle PlayButton-icon"></span></div></div></span></div><div class="InlineVideo-videoFooter"><div class="InlineVideo-videoDurationContainer"><span class="InlineVideo-videoLabel">VIDEO</span><span class="InlineVideo-videoDurationWithLeading0">6:20</span><span class="InlineVideo-videoDuration InlineVideo-videoLabel">06:20</span></div><div class="InlineVideo-title">Why are China's billionaires going under the radar?</div><div class="InlineVideo-section"><a href="https://www.cnbc.com/cnbc-explains/">CNBC Explains</a></div></div></div></div><div class="PlaceHolder-endCard PlaceHolder-inactive"></div></div></div><div class="MobileAdhesion-container" data-module="mps-slot" id="ArticleBody-MobileAdhesion"></div></div> |
Chinese President Xi JinpingAris Messinis | Pool | ReutersBEIJING — Chinese President Xi Jinping emphasized at a finance and economic meeting Tuesday the need to support moderate wealth for all — or the idea of "common prosperity," which analysts have said is behind the latest regulatory crackdown on tech companies.Significantly, the meeting was the first Xi led publicly since a two-week quiet period. Chinese leaders typically spend early August in secret political discussions at a resort in Beidaihe, about a three hours' drive east of Beijing.The meeting called for the "reasonable adjustment of excessive incomes and encouraging high income groups and businesses to return more to society," state media said in Chinese, according to a CNBC translation.watch nowVIDEO3:4103:41We're finally getting to the finish line with China regulation, says KraneShares CIO AhernPower LunchLeaders also specified common prosperity does not mean prosperity for just a few and is not a form of equal distribution, state media said. Rather, progress toward the goal would occur in stages, the report said.Delivering "common prosperity" has emerged in recent months as an underlying theme of Chinese political discussion. The term is generally understood as moderate wealth for all, rather than just a few. But it remains a vague, frequently used slogan.Yue Su, principal economist at The Economist Intelligence Unit, said in a statement she expects authorities to be pragmatic in implementation."Considering that raising taxes on high-income groups and capital returns may curb investment and potentially lead to capital outflows, the Chinese government will not completely ignore the impact of redistribution policies on the economy," she said.She added that privatization will likely slow in public services such as education, care for the elderly or medical care, with authorities at the very least becoming more strict in monitoring prices and affordability.Income inequality among China's 1.4 billion people has increased over the last few decades. The top 10% of the population earned 41% of national income in 2015, up from 27% in 1978, according to estimates published in 2019 by Paris School of Economics professor Thomas Piketty and a team.But the lower-earning half of the population has seen its share of national income fall to about 15%, down from about 27% in 1978.This year, urban residents in the coastal city of Shanghai had an average per capita disposable income of 7,058 yuan ($1,091) a month, far higher than the 4,021 yuan for those in cities nationwide, and well above the 1,541 yuan for rural residents, official data showed.The Chinese government has claimed it eliminated extreme poverty in the country as of the end of last year. That marked a first step to fulfilling the longer-term pledges of the ruling Chinese Communist Party, which celebrated its 100th anniversary in July.Read more about China from CNBC ProJPMorgan picks China stocks to buy now. Alibaba's not on the listPortfolio manager explains why he has the 'most conviction' in this China tech stockChina's version of Spotify is 'underappreciated,' Morgan Stanley saysGoldman Sachs loves this sub-sector in China — and names 3 stocks to buy"Elaborating on the 'common prosperity' objective, China has affirmed its effort to rebalance the economy toward labor, tackling social inequality with redistribution, social welfare, taxes and inclusive education," Morgan Stanley analysts said in a report distributed Wednesday, noting a target — "to increase the middle-income group's share of the economy."Based on the top economic policy meeting, the analysts said they expect additional measures to support economic growth, such as a cut to the reserve requirement ratio.Data for July showed China's economic growth slowed more than analysts' expected, including figures on spending by individual Chinese consumers.However, economists have noted that growth is not as important for Beijing this year as tackling long-term problems such as a buildup of debt and risks in the vast real estate market."Finance is the core of the modern economy, with ties to development and security," CNBC's translation of state media said, citing Xi's remarks at Tuesday's meeting. "It must follow the principles of marketization and the rule of law, and coordinate the prevention and resolution of major financial risks."watch nowVIDEO6:2006:20Why are China's billionaires going under the radar?CNBC Explains |
2397ea3c-7a10-5b23-8084-ba180072abb2 |
2024-09-07 |
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| Bove sees global rise of Chinese currency as threat to US prosperity |
https://www.cnbc.com/2019/01/14/bove-sees-global-rise-of-chinese-currency-as-threat-to-us-prosperity.html |
2019-01-14 16:33:32+00:00 |
Richard X. Bove |
CNBC |
China and its allies have placed a great deal of emphasis on using the yuan as a dollar replacement in many parts of the world. In those areas where this shift has occurred countries fall out of the United States orbit. This impacts U.S. economic health and, at some point, will affect the ability of this country to grow trade internationally and to fund its debt with international resources. |
cnbc, Articles, Richard Bove, World economy, U.S. Economy, Economy, Trade, Currency markets, Banks, Currencies, US Economy, World Economy, US: News, Business News, Finance, source:tagname:CNBC US Source |
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Business News |
<div class="ArticleBody-articleBody" data-analytics="RegularArticle-articleBody-5-2" data-module="ArticleBody" data-test="articleBody-2" id="RegularArticle-ArticleBody-5"><span class="HighlightShare-hidden" style="top:0;left:0"></span><div class="InlineImage-imageEmbed" data-test="InlineImage" id="ArticleBody-InlineImage-104226848"><div class="InlineImage-wrapper"><div class="InlineImage-imagePlaceholder" style="padding-bottom:55.55555555555556%"><div class="lazyload-placeholder" style="height:100%"></div></div><div><div class="InlineImage-imageEmbedCaption">Chinese yuan and dollar</div><div class="InlineImage-imageEmbedCredit">China Photos | Getty Images </div></div></div></div><div class="group"><p>No one is likely to dispute the fact that China and its allies are working diligently to establish a multilateral world. In it China would control its own sphere from the eastern Pacific rim to the countries located along the historic "Silk Road." That trade route stretched from East Asia to West Africa. </p><p>In this regard, a great deal is being written about the Chinese military build-up in the Pacific; the theft of technology secrets; unfair trade policies; and discriminatory investment practices. Very little focus has been placed upon the creep of the yuan and the expansion of the Chinese banking system. Yet, this might be the greatest threat of all. </p><div class="lazyload-placeholder" style="height:100%"></div><p>China and its allies have placed a great deal of emphasis on using the yuan as a dollar replacement in many parts of the world. In those areas where this shift has occurred countries fall out of the United States orbit. This impacts U.S. economic health and, at some point, will affect the ability of this country to grow trade internationally and to fund its debt with international resources.</p></div><h2 class="ArticleBody-subtitle"><a id="headline0"></a>Yuan Creep</h2><div class="group"><p>Prior to China joining the World Trade Organization in December 2001, only a few hundred banks in the world would clear transactions completed in yuan. A decade later, it was reported that well over 10,000 banks, worldwide would transact in the yuan. So many global entities were using the yuan that in October 2016, the International Monetary Fund (IMF) decided to include the yuan as one of four currencies backing its Special Drawing Rights (SDRs). In sum, the yuan had become one of the world's reserve currencies.</p><p>The yuan had reached this lofty level due to a three pronged approach. First, countries that had historic issues with United States dollar dominance supported greater use of the yuan. They include Russia, Iran, North Korea and to some extent South Africa and Brazil. </p><p>Second, China isolated countries that were having difficulty accessing large amounts of dollar based loans due to poor repayment histories. In South America this included small nations like Ecuador and larger countries like Venezuela and possibly Argentina. In Africa, the list is very long. At the top is Angola, Ethiopia, and the Republic of the Congo.</p><p> The third group of nations are countries, primarily in east Asia, who trade heavily with China. In many cases, the Chinese demand that these nations use the yuan in all trading transactions. In fact, China has gone even further. It has established the Asian Infrastructure Investment Bank, a replica of the western world's IMF. This banks is funded by China and lends to other Asian nations. </p><div class="lazyload-placeholder" style="height:100%"></div><p>Stated crudely, the yuan is becoming the dominant currency in many countries with small and troubled economies but the world's largest and fastest growing populations.</p></div><h2 class="ArticleBody-subtitle"><a id="headline1"></a>Why is this Important?</h2><div class="group"><p>The American Century was built on many factors related to the stability of this nation's economy; its strong military; and its financial dominance. Following World War II, one might argue that the dollar was the only currency in the world that mattered. Backing this currency was a large, relatively stable, banking system. If a nation wanted to trade internationally it had to have dollars and the only place to acquire them was from American banks. </p><p>Some would argue that this financial dominance led to the creation of the multilateral rules and organizations that fostered and incentivized the global growth that developed in the past 7 decades whereby virtually every nation benefited. If yuan creep continues these rules and organizations will be re-written.</p><p>Most importantly, large areas of the world will function under a new financial system orchestrated by China. From the perspective of the United States this would reduce this nation's trade and its ability to fund its debt. Yuan Creep has the potential to cause major disruptions in this country over time. </p></div><h2 class="ArticleBody-subtitle"><a id="headline2"></a>How is the U.S. Reacting to this Threat? </h2><div class="group"><p>Actually, the U.S. is unwittingly aiding Yuan Creep. This country is penalizing domestic banks that increase in size. It is putting operating restrictions on American banks that operate in global markets. It is using its banks to attack other nations with a variety of financial sanctions. It is penalizing foreign banks that compete with China in nations shifting their financial allegiances. </p><p>The United States is creating a financial vacuum into which the Yuan is creeping. The biggest banks in the world are now headquartered in China. The biggest U.S. bank is smaller than the fourth biggest Chinese bank. This is simply bad for this country.</p></div><div class="MobileAdhesion-container" data-module="mps-slot" id="ArticleBody-MobileAdhesion"></div></div> |
Chinese yuan and dollarChina Photos | Getty Images No one is likely to dispute the fact that China and its allies are working diligently to establish a multilateral world. In it China would control its own sphere from the eastern Pacific rim to the countries located along the historic "Silk Road." That trade route stretched from East Asia to West Africa. In this regard, a great deal is being written about the Chinese military build-up in the Pacific; the theft of technology secrets; unfair trade policies; and discriminatory investment practices. Very little focus has been placed upon the creep of the yuan and the expansion of the Chinese banking system. Yet, this might be the greatest threat of all. China and its allies have placed a great deal of emphasis on using the yuan as a dollar replacement in many parts of the world. In those areas where this shift has occurred countries fall out of the United States orbit. This impacts U.S. economic health and, at some point, will affect the ability of this country to grow trade internationally and to fund its debt with international resources.Yuan CreepPrior to China joining the World Trade Organization in December 2001, only a few hundred banks in the world would clear transactions completed in yuan. A decade later, it was reported that well over 10,000 banks, worldwide would transact in the yuan. So many global entities were using the yuan that in October 2016, the International Monetary Fund (IMF) decided to include the yuan as one of four currencies backing its Special Drawing Rights (SDRs). In sum, the yuan had become one of the world's reserve currencies.The yuan had reached this lofty level due to a three pronged approach. First, countries that had historic issues with United States dollar dominance supported greater use of the yuan. They include Russia, Iran, North Korea and to some extent South Africa and Brazil. Second, China isolated countries that were having difficulty accessing large amounts of dollar based loans due to poor repayment histories. In South America this included small nations like Ecuador and larger countries like Venezuela and possibly Argentina. In Africa, the list is very long. At the top is Angola, Ethiopia, and the Republic of the Congo. The third group of nations are countries, primarily in east Asia, who trade heavily with China. In many cases, the Chinese demand that these nations use the yuan in all trading transactions. In fact, China has gone even further. It has established the Asian Infrastructure Investment Bank, a replica of the western world's IMF. This banks is funded by China and lends to other Asian nations. Stated crudely, the yuan is becoming the dominant currency in many countries with small and troubled economies but the world's largest and fastest growing populations.Why is this Important?The American Century was built on many factors related to the stability of this nation's economy; its strong military; and its financial dominance. Following World War II, one might argue that the dollar was the only currency in the world that mattered. Backing this currency was a large, relatively stable, banking system. If a nation wanted to trade internationally it had to have dollars and the only place to acquire them was from American banks. Some would argue that this financial dominance led to the creation of the multilateral rules and organizations that fostered and incentivized the global growth that developed in the past 7 decades whereby virtually every nation benefited. If yuan creep continues these rules and organizations will be re-written.Most importantly, large areas of the world will function under a new financial system orchestrated by China. From the perspective of the United States this would reduce this nation's trade and its ability to fund its debt. Yuan Creep has the potential to cause major disruptions in this country over time. How is the U.S. Reacting to this Threat? Actually, the U.S. is unwittingly aiding Yuan Creep. This country is penalizing domestic banks that increase in size. It is putting operating restrictions on American banks that operate in global markets. It is using its banks to attack other nations with a variety of financial sanctions. It is penalizing foreign banks that compete with China in nations shifting their financial allegiances. The United States is creating a financial vacuum into which the Yuan is creeping. The biggest banks in the world are now headquartered in China. The biggest U.S. bank is smaller than the fourth biggest Chinese bank. This is simply bad for this country. |
886ed227-519f-5c82-9fe7-46542db595fc |
2024-09-07 |
|
| HSBC predicts China's 2019 GDP will soar past others' estimates |
https://www.cnbc.com/2019/04/09/hsbc-predicts-china-2019-gdp-will-soar-past-others-estimates.html |
2019-04-09 05:58:02+00:00 |
Kelly Olsen |
CNBC |
China's stimulus-boosted private sector is on track to lead the economy to a "self-sustained recovery" that could see growth hit 6.6 percent this year, according to HSBC. |
cnbc, Articles, China, Xi Jinping, Central banking, U.S. Economy, World economy, Asia Economy, Hong Kong, Asia News, World Economy, US Economy, China Markets, Asia Markets, Central Banks, China Economy, source:tagname:CNBC Asia Source |
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China Economy |
<div class="ArticleBody-articleBody" data-analytics="RegularArticle-articleBody-5-2" data-module="ArticleBody" data-test="articleBody-2" id="RegularArticle-ArticleBody-5"><span class="HighlightShare-hidden" style="top:0;left:0"></span><div class="InlineImage-imageEmbed" data-test="InlineImage" id="ArticleBody-InlineImage-102959700"><div class="InlineImage-wrapper"><div class="InlineImage-imagePlaceholder" style="padding-bottom:55.55555555555556%"><div class="lazyload-placeholder" style="height:100%"></div></div><div><div class="InlineImage-imageEmbedCaption">Shoppers peruse vendors' wares on a street in Beijing</div><div class="InlineImage-imageEmbedCredit">Tomohiro Ohsumi | Bloomberg | Getty Images</div></div></div></div><div class="group"><p><a href="https://www.cnbc.com/china/">China's</a> stimulus-boosted private sector is on track to lead the economy to a "self-sustained recovery" that could see growth hit 6.6 percent this year, according to HSBC.</p><p>And while that would only match last year's GDP result — <a href="https://www.cnbc.com/2019/01/21/china-2018-gdp-china-reports-economic-growth-for-fourth-quarter-year.html">the worst performance for the world's second-largest economy in 28 years</a> — it is well above current consensus of about 6.2 percent for 2019.</p><div class="lazyload-placeholder" style="height:100%"></div><p>Pessimism has engulfed the outlook for China's economy this year following 2018's performance as waning growth and the still-unresolved trade war with the United States cast long shadows.</p><p>The Chinese government last month <a href="#">set its GDP growth target for this year at between 6.0 percent to 6.5 percent,</a> below last year's of about 6.5 percent. China is set to announce first quarter economic growth on April 17.</p><p>Alarmed by sliding economic indicators, the Chinese government in 2018 introduced measures, such as encouraging banks to increase lending, to bolster growth — moving away from a policy that had been aimed at reining in debt.</p><p>That looser stance is accelerating this year, with <a href="https://www.cnbc.com/2019/03/05/chinese-premier-li-keqiang-on-tax-cuts-monetary-stimulus-in-china.html">Premier Li Keqiang announcing fresh stimulus measures last month,</a> including cuts in taxes and fees worth 2 trillion yuan ($297.73 billion).</p><p>HSBC said in a report Monday that recent economic data, <a href="https://www.cnbc.com/2019/04/01/china-economy-march-caixin-manufacturing-purchasing-managers-index.html">including stronger manufacturing activity</a>, show that "growth has bottomed and will gradually pick up in the coming quarters as the stimulus measures filter through."</p><div class="lazyload-placeholder" style="height:100%"></div></div><h2 class="ArticleBody-subtitle"><a id="headline0"></a>'This time is very different'</h2><div class="group"><p>The British bank said that it sees GDP growth hitting 6.7 percent by the fourth quarter, which it predicted will push the figure for the full year to 6.6 percent.</p><p>"The shape of the stimulus package this time is very different from earlier rounds," Hong Kong-based HSBC economists Qu Hongbin and Julia Wang said in the report. "We believe that it will not only work, but will also trigger a self-sustained recovery in the coming quarters."</p><p>They said previous packages were focused on infrastructure spending but the latest tax and fee cut announced by Li — which they described as the biggest in a decade — is centered on corporate tax cuts for the crucial non-state sector.</p><p>Non-state companies make up more than 80 percent of employment in urban areas and over 70 percent of GDP, they said.</p><p>"So rising private investment could benefit over 80 percent of urban consumers, boosting final demand for products and services," Qu and Wang said. "This would lead to a self-sustained growth recovery, in our view."</p><p>The <a href="https://www.cnbc.com/2018/11/09/chinas-xi-tries-to-reassure-the-countrys-worried-private-companies.html">concerns of private companies</a> about their worsening conditions last year drew the attention of Chinese President <a href="https://www.cnbc.com/xi-jinping/">Xi Jinping</a>, who assured them that authorities stood ready to help.</p><p>Economists elsewhere are also noting signs that China's economy is stabilizing. Citi, in a report Monday, said it sees "upside risks" to its current 6.2 percent growth forecast for this year.</p></div><div class="MobileAdhesion-container" data-module="mps-slot" id="ArticleBody-MobileAdhesion"></div></div> |
Shoppers peruse vendors' wares on a street in BeijingTomohiro Ohsumi | Bloomberg | Getty ImagesChina's stimulus-boosted private sector is on track to lead the economy to a "self-sustained recovery" that could see growth hit 6.6 percent this year, according to HSBC.And while that would only match last year's GDP result — the worst performance for the world's second-largest economy in 28 years — it is well above current consensus of about 6.2 percent for 2019.Pessimism has engulfed the outlook for China's economy this year following 2018's performance as waning growth and the still-unresolved trade war with the United States cast long shadows.The Chinese government last month set its GDP growth target for this year at between 6.0 percent to 6.5 percent, below last year's of about 6.5 percent. China is set to announce first quarter economic growth on April 17.Alarmed by sliding economic indicators, the Chinese government in 2018 introduced measures, such as encouraging banks to increase lending, to bolster growth — moving away from a policy that had been aimed at reining in debt.That looser stance is accelerating this year, with Premier Li Keqiang announcing fresh stimulus measures last month, including cuts in taxes and fees worth 2 trillion yuan ($297.73 billion).HSBC said in a report Monday that recent economic data, including stronger manufacturing activity, show that "growth has bottomed and will gradually pick up in the coming quarters as the stimulus measures filter through."'This time is very different'The British bank said that it sees GDP growth hitting 6.7 percent by the fourth quarter, which it predicted will push the figure for the full year to 6.6 percent."The shape of the stimulus package this time is very different from earlier rounds," Hong Kong-based HSBC economists Qu Hongbin and Julia Wang said in the report. "We believe that it will not only work, but will also trigger a self-sustained recovery in the coming quarters."They said previous packages were focused on infrastructure spending but the latest tax and fee cut announced by Li — which they described as the biggest in a decade — is centered on corporate tax cuts for the crucial non-state sector.Non-state companies make up more than 80 percent of employment in urban areas and over 70 percent of GDP, they said."So rising private investment could benefit over 80 percent of urban consumers, boosting final demand for products and services," Qu and Wang said. "This would lead to a self-sustained growth recovery, in our view."The concerns of private companies about their worsening conditions last year drew the attention of Chinese President Xi Jinping, who assured them that authorities stood ready to help.Economists elsewhere are also noting signs that China's economy is stabilizing. Citi, in a report Monday, said it sees "upside risks" to its current 6.2 percent growth forecast for this year. |
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2024-09-07 |
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| Global trade expert: US may increase tariffs on China, but there won't be a trade war |
https://www.cnbc.com/2017/04/03/us-may-raise-tariffs-on-china-but-there-wont-be-a-trade-war-expert.html |
2017-04-04 02:14:45+00:00 |
Eustance Huang, Special to CNBC |
CNBC |
Alex Capri, a visiting senior fellow at the National University of Singapore's business school, told CNBC that a U.S.-China trade war is unlikely. |
cnbc, Articles, Government taxation and revenue, World economy, Asia News, China, Donald Trump, World Economy, Taxes, Business News, Economy, source:tagname:CNBC Asia Source |
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Business News |
<div class="ArticleBody-articleBody" data-analytics="RegularArticle-articleBody-5-2" data-module="ArticleBody" data-test="articleBody-2" id="RegularArticle-ArticleBody-5"><span class="HighlightShare-hidden" style="top:0;left:0"></span><div aria-labelledby="Placeholder-ArticleBody-Video-104380005" role="region"><div class="PlaceHolder-wrapper" data-test="VideoPlaceHolder" data-vilynx-id="3000606821" id="Placeholder-ArticleBody-Video-104380005" role="button" tabindex="0"><div class="InlineVideo-videoEmbed" data-test="InlineVideo" id="InlineVideo-0"><div class="InlineVideo-wrapper"><div class="InlineVideo-inlineThumbnailContainer"><img alt="China has 'resigned' itself to bluster" class="InlineVideo-videoThumbnail" src="https://image.cnbcfm.com/api/v1/image/104380030-2ED3-CC-USChina-040317.jpg?v=1529474694&w=750&h=422&vtcrop=y"/><span class="InlineVideo-videoButton"></span><span><div class="undefined PlayButton-container" data-test="PlayButton"><div class="PlayButton-featured PlayButton-base" data-type="play"><span class="PlayButton-flyout">watch now</span><span class="icon-play-triangle PlayButton-icon"></span></div></div></span></div><div class="InlineVideo-videoFooter"><div class="InlineVideo-videoDurationContainer"><span class="InlineVideo-videoLabel">VIDEO</span><span class="InlineVideo-videoDurationWithLeading0">2:05</span><span class="InlineVideo-videoDuration InlineVideo-videoLabel">02:05</span></div><div class="InlineVideo-title">China has 'resigned' itself to bluster</div><div class="InlineVideo-section"><a href="https://www.cnbc.com/capital-connection/">Capital Connection</a></div></div></div></div><div class="PlaceHolder-endCard PlaceHolder-inactive"></div></div></div><div class="group"><p>President <a href="https://www.cnbc.com/donald-trump/">Donald Trump</a> has been a vocal critic of U.S.-<a href="https://www.cnbc.com/china/">China</a> trade relations since his days on the campaign trail, often calling for a stronger stance against Beijing.</p><p>That rhetoric led many analysts to suggest a trade war between the world's two largest economies could be on the horizon, and it would have major global ramifications. But, Alex Capri, an expert on international trade and a visiting senior fellow at the National University of Singapore's business school, told CNBC that such a trade war is unlikely — although an increase in certain kinds of tariffs on Chinese products could well occur.</p><div class="lazyload-placeholder" style="height:100%"></div><p>Speaking with CNBC's "Capital Connection" on Monday, Capri said "there will be an increase in anti-dumping duties, there will be an increase in countervailing duties levied against Chinese products."</p><p>Still, he said, "it's unlikely that we will see an across-the-board tariff of 45 percent across a whole suite of Chinese products."</p><p>Capri stressed that it would be unlikely for a trade war to break out between the nations as such a move would be unlikely to benefit anyone.</p><p>He did, however, caution against possible retaliation by the Chinese government if the U.S. decided to take actions on trade which Beijing deems too drastic or unfair. U.S. businesses would obviously be concerned by the prospect of retaliation, Capri added, as many are already facing difficulties in China.</p><p>"[The Chinese government] could certainly make business much more difficult for companies on the ground in China, and it's not exactly easy for them now as is," Capri said.</p><div class="lazyload-placeholder" style="height:100%"></div></div><div class="group"><p>Capri's comments come ahead of a much-anticipated first meeting between Trump and Chinese President Xi Jinping at Trump's Mar-a-Lago resort in Florida later this week. There, Capri predicted, "the Chinese will come into this meeting looking to establish 'harmonious' relationship" with the U.S.</p><p>When asked about the possibility of the U.S. Treasury labeling China a currency manipulator, Capri said that it was an improbable scenario as it was not in Beijing's interest to deliberately devalue the yuan.</p><p>"I think the long term plans for China, if you look at their 5-year plan to develop in terms of high technology — you know, the China 2025 plan — the renminbi is a very important part of that," he said. "They want the renminbi to be a major currency for trade, for transactions, so it's not really in their interests, medium-term, to devalue it."</p><p><em>Follow CNBC International on <a href="https://twitter.com/cnbci" target="_blank">Twitter</a> and <a href="https://www.facebook.com/cnbcinternational" target="_blank">Facebook</a>.</em></p></div><div class="MobileAdhesion-container" data-module="mps-slot" id="ArticleBody-MobileAdhesion"></div></div> |
watch nowVIDEO2:0502:05China has 'resigned' itself to blusterCapital ConnectionPresident Donald Trump has been a vocal critic of U.S.-China trade relations since his days on the campaign trail, often calling for a stronger stance against Beijing.That rhetoric led many analysts to suggest a trade war between the world's two largest economies could be on the horizon, and it would have major global ramifications. But, Alex Capri, an expert on international trade and a visiting senior fellow at the National University of Singapore's business school, told CNBC that such a trade war is unlikely — although an increase in certain kinds of tariffs on Chinese products could well occur.Speaking with CNBC's "Capital Connection" on Monday, Capri said "there will be an increase in anti-dumping duties, there will be an increase in countervailing duties levied against Chinese products."Still, he said, "it's unlikely that we will see an across-the-board tariff of 45 percent across a whole suite of Chinese products."Capri stressed that it would be unlikely for a trade war to break out between the nations as such a move would be unlikely to benefit anyone.He did, however, caution against possible retaliation by the Chinese government if the U.S. decided to take actions on trade which Beijing deems too drastic or unfair. U.S. businesses would obviously be concerned by the prospect of retaliation, Capri added, as many are already facing difficulties in China."[The Chinese government] could certainly make business much more difficult for companies on the ground in China, and it's not exactly easy for them now as is," Capri said.Capri's comments come ahead of a much-anticipated first meeting between Trump and Chinese President Xi Jinping at Trump's Mar-a-Lago resort in Florida later this week. There, Capri predicted, "the Chinese will come into this meeting looking to establish 'harmonious' relationship" with the U.S.When asked about the possibility of the U.S. Treasury labeling China a currency manipulator, Capri said that it was an improbable scenario as it was not in Beijing's interest to deliberately devalue the yuan."I think the long term plans for China, if you look at their 5-year plan to develop in terms of high technology — you know, the China 2025 plan — the renminbi is a very important part of that," he said. "They want the renminbi to be a major currency for trade, for transactions, so it's not really in their interests, medium-term, to devalue it."Follow CNBC International on Twitter and Facebook. |
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2024-09-07 |
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