Emerging markets: increasing or decreasing risks?

So far, 2018 has been a difficult year for emerging market (EM) assets, which in the last few months have fared significantly worse than their counterparts in developed markets. This has been due mainly to worldwide issues but also country-specific political uncertainty. Many investors are now asking if the sell-off presents a buying opportunity – … Continue reading “Emerging markets: increasing or decreasing risks?”

Is the trade war really all about the mid-term elections?

US President Donald Trump’s trade war could damage the global economy, but is he just playing politics? Steve Mnuchin did not hold any formal meetings with China at this weekend’s meeting of G20 finance ministers in Buenos Aires. This is despite the US Treasury Secretary indicating recently in Congress that he was prepared to reopen … Continue reading “Is the trade war really all about the mid-term elections?”

Trade War: A game of strategy

Donald, who? In early 2016, Parmenion used the incoming US President, Donald Trump as the theme for our regional roadshows. Who was he and what were his plans? We talked about The Wall, his infrastructure plans, tax cutting ideas and the promised support for the military. We didn’t foresee the Russian investigation, high White House staff … Continue reading “Trade War: A game of strategy”

Investors are hoping Trump is playing tactics

When equity markets were hitting new highs Donald Trump was taking all the credit. “The reason our stock market is so successful is because of me,” the President declared to journalists aboard Air Force One. But the problem with this attitude, as noted by Barack Obama’s former press secretary Jay Carney, is that if you … Continue reading “Investors are hoping Trump is playing tactics”

Can China get along with President Trump?

When President Trump met President Xi we were told the meeting went well. The two men recognised the power each held, and both had a reason to want a positive relationship. Mr Trump understood the influence China has over North Korea, and wanted help with sorting out the tensions over North Korea’s development of nuclear … Continue reading “Can China get along with President Trump?”

UK investors to get direct access to some Chinese shares

News that the British and Chinese stock market will be directly linked is a positive for both countries. It proves China is opening up and it is, post-Brexit, a vote of confidence in the City of London. By the end of this year, there will be a direct link between the London Stock Exchange and … Continue reading “UK investors to get direct access to some Chinese shares”

How China is positioning for slower growth

The Chinese authorities seem to have acknowledged that lower growth will be inevitable. We look at how they have increased their room for manoeuvre economically and politically. The National People’s Congress (NPC), China’s national legislature, met from 5th to 20th March. This conference traditionally provides the senior leadership group with the opportunity to set policy … Continue reading “How China is positioning for slower growth”

Blue skies for communist China?

China is attempting to develop a more rounded and richer economy, with more coming from services and higher value added activities – a difficult balancing act. China’s achievement under President Xi, as under his immediate predecessors, has been impressive. According to the World Bank China now has the world’s largest economy as measured in Purchasing … Continue reading “Blue skies for communist China?”

China points to the financial future

Last time I was in Beijing, I stopped to buy some sausages from a street vendor outside the Forbidden City.  They cost only a couple of yuan, yet the lady selling them was happy to take payment on her phone using the Alipay app. I don’t know what she did with the proceeds. But she … Continue reading “China points to the financial future”

Will China’s stronger-than-expected growth last?

At the closing ceremony of the Chinese Communist Party’s 19th five-year National Congress, President Xi Jinping’s banner term “Thought on Socialism with Chinese Characteristics for a New Era” was written into its constitution, taking its place among the formal ideologies of his predecessors. Meanwhile, there are suggestions that he may remain in power past the … Continue reading “Will China’s stronger-than-expected growth last?”

China’s different system carries on growing

When President Xi first gained the position of President of China five years ago there was considerable western enthusiasm. He came across as a keen reformer willing to push on with China’s enterprise revolution. He wanted to open China’s markets more to the west, to liberalise foreign exchange, privatise more industry and even introduce more … Continue reading “China’s different system carries on growing”

Two decades on from crisis, Asia is roaring

Twenty years ago this month, the government of Indonesia signed the first of several agreements with the International Monetary Fund (IMF) that threw a financial lifeline to a country struggling to stay afloat amid the Asian crisis. Deep-pocketed speculators, spotting structural weaknesses in selected regional economies, had forced catastrophic currency devaluations which triggered economic and … Continue reading “Two decades on from crisis, Asia is roaring”

The rise of China’s technology giants

Baidu, Alibaba and Tencent have rewarded investors’ faith in them. But how have they come to dominate the online economy in China?  When little-known Chinese online gaming and messaging company Tencent decided to list in Hong Kong back in June 2004, its shares were offered at HK$ 3.70 apiece. Fast-forward 13 years to the present … Continue reading “The rise of China’s technology giants”

Supercharged: the car industry in a post-oil world

Governments around the world, barring a handful of exceptions, are seeking to limit the effects of climate change caused by burning fossil fuels. Earlier this year, some 200 countries signed the Paris Agreement, which commits them to help curtail global temperature rises. Part of the solution lies in promoting fuels that produce less of the … Continue reading “Supercharged: the car industry in a post-oil world”

Is China’s tech boom worth investing in?

China’s statistics are often larger-than-life but the numbers relating to mobile phone ownership and money spent online are truly staggering. As of the end of last year, more than half the population – some 731 million people – were online. That’s almost all the people in Europe. Some 95% access the internet via mobile devices. … Continue reading “Is China’s tech boom worth investing in?”