Hello. Today we look at China’s slowdown and whether party reshuffling could pave the path to recovery, and an easing in some inflation pressures as chip, fertilizer and shipping container costs moderate.To get more China business latest news, you can visit shine news official website.
Are the Brakes Coming Off?
One of the most notable things about China’s economic slowdown is just how self inflicted it has been.
The Covid Zero strategy has seen the megacities of Shenzhen and Shanghai locked down, denting output and retail sales. The property slump stems from deliberate efforts to curb speculation and rein in developers. And a regulatory overhaul has hammered giant internet platform companies.
To China bears, all that government intervention shows the nation has become largely un-investible.
Bulls see it differently, priming for a recovery in markets and the economy once the brakes are eased on Covid, housing and internet companies. Whether that’s a harbinger of better times ahead, as the bulls would argue, or yet more policy unpredictability as the bears maintain, remains to be seen. But one thing that both camps can probably agree on: In today’s China, Marxism is back, and investors had better take note.
As Tom Hancock reports for Bloomberg Markets Magazine, the intellectual shift hasn’t happened overnight, but it has become more evident in the past two years. Since the end of 2020, when China’s Communist Party began vowing to rein in the “disorderly expansion of capital,” a regulatory onslaught has swept through the economy and stock market.
At first, economists at investment banks interpreted the party’s statements on disorderly capital expansion as a call to curtail the power of big companies that was similar to antitrust efforts the US and Europe were bringing to bear on tech platforms. But political economists empowered by President Xi Jinping have seen it differently: as calling for a wholesale revamp of the relationship between the state and private business.Three of the key supply-side factors driving today’s global inflation levels have already turned around, meaning relief could be on the horizon for shoppers worldwide, Michelle Jamrisko reports here.
Though few forecasters are predicting a return to pre-pandemic prices in the short run, a moderation in those supply-side pressures could eventually allow central bankers to slow their tightening cycles.
US inflation is running even closer today to its 1980 peak, fresh analysis of historical price data shows, suggesting to the authors of the study that the Federal Reserve’s task of bringing price gains back to its target is similar in scale to that of then-Chair Paul Volcker.
A group of economists including former Treasury Secretary Lawrence Summers recalculated historical readings for the consumer price index to apply modern-day spending patterns, especially for housing.
After adjustments, the figures showed that core inflation ran at an estimated 9.1% in June 1980 — versus the reported peak of 13.6%, the paper by economists Marijn A. Bolhuis, Judd N. L. Cramer and Summers said.
Hello. Today we look at China’s slowdown and whether party reshuffling could pave the path to recovery, and an easing in some inflation pressures as chip, fertilizer and shipping container costs moderate.To get more China business latest news, you can visit shine news official website.
Are the Brakes Coming Off?
One of the most notable things about China’s economic slowdown is just how self inflicted it has been.
The Covid Zero strategy has seen the megacities of Shenzhen and Shanghai locked down, denting output and retail sales. The property slump stems from deliberate efforts to curb speculation and rein in developers. And a regulatory overhaul has hammered giant internet platform companies.
To China bears, all that government intervention shows the nation has become largely un-investible.
Bulls see it differently, priming for a recovery in markets and the economy once the brakes are eased on Covid, housing and internet companies. Whether that’s a harbinger of better times ahead, as the bulls would argue, or yet more policy unpredictability as the bears maintain, remains to be seen. But one thing that both camps can probably agree on: In today’s China, Marxism is back, and investors had better take note.
As Tom Hancock reports for Bloomberg Markets Magazine, the intellectual shift hasn’t happened overnight, but it has become more evident in the past two years. Since the end of 2020, when China’s Communist Party began vowing to rein in the “disorderly expansion of capital,” a regulatory onslaught has swept through the economy and stock market.
At first, economists at investment banks interpreted the party’s statements on disorderly capital expansion as a call to curtail the power of big companies that was similar to antitrust efforts the US and Europe were bringing to bear on tech platforms. But political economists empowered by President Xi Jinping have seen it differently: as calling for a wholesale revamp of the relationship between the state and private business.Three of the key supply-side factors driving today’s global inflation levels have already turned around, meaning relief could be on the horizon for shoppers worldwide, Michelle Jamrisko reports here.
Though few forecasters are predicting a return to pre-pandemic prices in the short run, a moderation in those supply-side pressures could eventually allow central bankers to slow their tightening cycles.
US inflation is running even closer today to its 1980 peak, fresh analysis of historical price data shows, suggesting to the authors of the study that the Federal Reserve’s task of bringing price gains back to its target is similar in scale to that of then-Chair Paul Volcker.
A group of economists including former Treasury Secretary Lawrence Summers recalculated historical readings for the consumer price index to apply modern-day spending patterns, especially for housing.
After adjustments, the figures showed that core inflation ran at an estimated 9.1% in June 1980 — versus the reported peak of 13.6%, the paper by economists Marijn A. Bolhuis, Judd N. L. Cramer and Summers said.