News with tag Economy  RSS
China's economic growth plunges to lowest level since 1992

18.10.2019 3:15

China's growth dropped to its lowest level in nearly three decades, as the world's second largest economy continues to feel the pain from trade tensions with the United States.

From: rss.cnn.com

[Ticker] US imposes €6.7bn new tariffs on European products

18.10.2019 2:53

The United States have imposed new tariffs on European products starting on Friday. The tariffs of in total $7.5bn [€6.7bn] are in place on a list of products including airplanes (Airbus), French wine, Italian cheese and Scottish whisky. French minister of economy, Bruno Le Maire warned that "these decisions would have very negative consequences both from an economic and a political point of view".

From: euobserver.com

[Ticker] Turkey's pension fund buys stake in Finnish defence firm

18.10.2019 2:48

Turkey's army-linked pension fund has purchased a 70-percent stake in a major Finnish defence manufacturer, which makes products such as reinforced steel for armoured vehicles, Finnish media Uutiset writes. The ministries of employment and economy closed the deal in April. Last year, Turkey was Finland's most important arms sales partner. Earlier this week EU states agreed to stop arms sales to Turkey over its invasion of Syria.

From: euobserver.com

China’s growth slows to lowest in 27 years

18.10.2019 1:46

China's third-quarter economic growth slowed more than expected and to its weakest pace in almost three decades as the bruising US trade war hit factory production, boosting the case for Beijing to roll out fresh support.

From: www.news.com.au

China economy: Third quarter growth misses expectations

18.10.2019 1:03

The world's second largest economy is battling a trade war with the US and slowing domestic demand.

Tags: Economy
From: www.bbc.co.uk

China's GDP growth grinds to near 30-year low as tariffs hit production

18.10.2019 0:43

China's third-quarter economic growth slowed more than expected and to its weakest pace in almost three decades as the bruising U.S. trade war hit factory production, boosting the case for Beijing to roll out fresh support.

From: feeds.reuters.com

Instant View: China third-quarter GDP grows 6.0% year-on-year, misses expectations

18.10.2019 0:43

China's economic growth slowed more than expected to 6.0% year-on-year in the third quarter, the weakest pace in at least 27-1/2 years, as demand at home and abroad faltered amid a bruising Sino-U.S. trade war.

Tags: Economy
From: feeds.reuters.com

China's economic growth sinks to a 26-year low

18.10.2019 0:08

The world's second-largest economy expanded by 6 percent.

Tags: Economy
From: feeds.foxbusiness.com

Holding Off Stimulus in Germany Isn't Just a Political Mantra

18.10.2019 0:00


(Bloomberg) -- When German officials get nagged about delivering major fiscal stimulus, they have plenty of answers ready for why now isn’t the moment.Their arguments don’t just rely on the national obsession with budget prudence and the avoidance of debt though. Officials also cite their assessment of the current situation in Europe’s biggest economy, as well as tactical considerations on how a stimulus package would be effective.Such reasoning might be used often this week in Washington as Finance Minister Olaf Scholz and colleagues attend meetings of the International Monetary Fund, which on Tuesday called for Germany to invest more and reduce taxes to aid its faltering economy. Two days later, Chancellor Angela Merkel’s government cut its growth forecast for 2020 to just 1%, after earlier predicting 1.5%. Data due next month may even show the economy has just slipped into recession.The IMF is far from alone. Outgoing European Central Bank President Mario Draghi said last month that it is time for “fiscal policy to take charge” in the region, and is likely to repeat that refrain at his final meeting next week. Germany, with ample fiscal space built on repeated budget surpluses, is a prime candidate.While the opposition by some German lawmakers to a fiscal boost is starting to thaw, the government is holding firm for now. Here’s a look at some of the arguments they’re deploying to keep calls for stimulus at bay, based on public statements, private briefings, and confidential conversations with officials.Studying the CycleOne argument is that Germany’s slowdown doesn’t fundamentally stem from domestic weakness and the economic cycle. It’s a result of external and political factors, including global trade tensions and Brexit-related disruption. Such a situation isn’t best served by a classic stimulus response and doesn’t need measures that would normally counter the ebbing of the cycle.It’s Not AppropriateA continuation of that point is that the economy is actually close to its speed limit, with areas such as construction, where a lack of workers is causing bottlenecks, threatening to constrain expansion. Bundesbank President Jens Weidmann argued that on Wednesday, saying calls for German fiscal stimulus are “completely disconnected” from reality.“The economy is working with an almost-closed output gap,” he said in response to questions at an event in New York. “Why would you spend money when you are operating at full capacity?”Two-Speed EconomyGerman weakness has generally been limited to manufacturing and isn’t widespread, runs another argument. The auto industry has suffered from trade tensions and a slow response to the global shift toward electric vehicles. But the domestic economy remains healthy, thanks to unemployment near a record low and the benefits of extreme monetary easing.The line of reasoning holds that past spillovers from the industrial sector to the consumer aren’t happening this time, because the link between the two is weaker than it was.“It’s a two-speed Germany,” Trevor Greetham, head of multi-asset management at Royal London Asset Management, told Bloomberg Television. “The consumer is okay, and the housing market is actually rising quite strongly.”The Time Isn’t RightAnother view holds that a major budget stimulus should only be unveiled when it’s widely perceived to be needed. A fiscal boost may be more potent if announced at a time when things are really seen to be deteriorating. That was the experience in 2009 during the global financial crisis. But if ordinary people aren’t much feeling the effects of economic weakness, stimulus now could be less efficient than it otherwise would be.It Needs ThoughtA further point Weidmann made this week is that stimulus should be well aimed and not just delivered for the sake of it, suggesting the need for caution. He recommended targeted spending on infrastructure, research and education, and incentivizing work and investment through tax cuts.“It would be important to use the leeway wisely in order to promote sustainable growth in the long run and not just cause a flash in the pan,” he said.Merkel argued last month that simply spending cash isn’t what’s needed, saying “it’s currently not a lack of money” that’s the problem, and there are sufficient investment projects in the pipeline. They just need to be fast-tracked.--With assistance from Francine Lacqua.To contact the reporters on this story: Craig Stirling in Frankfurt at [email protected];Birgit Jennen in Berlin at [email protected] contact the editors responsible for this story: Simon Kennedy at [email protected], Paul Gordon, Jana RandowFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

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