Analysis & Opinion
With Britain’s economy languishing, Covid-19 uncertainties persisting and Brexit taking its toll, a lot could happen that would upset expectations of a bull market.
Notwithstanding the release of pent-up demand for consumer durables, face-to-face services, including food and entertainment services, show signs of lasting damage.
Hong Kong must address the legitimate worry about the efficacy and side effects of the three jabs it has chosen, especially Sinovac. But no vaccine is 100 per cent effective.
Despite a strong rebound in the third quarter, the bloc recorded a 0.4 per cent contraction in the fourth, raising fears of a double-dip recession.
When it comes to the driving forces behind purchase agreements with China, the picture that emerges is one of adequate solutions meeting extreme demand. China, and now Russia, are winning purchase agreements simply by being able to deliver.
With the jobless rate rising and unions seeing a need to support out-of-work Hongkongers, the government must respond. It’s also a good time to steer local business towards good corporate governance, to protect labour and environmental standards.
Today’s economic conditions have no precedent in the past 50 years, so current forecasts are no guarantee inflation will actually remain low. The massive fiscal and monetary expansion in response to Covid-19 may pose a greater inflation risk.
The allegations of biowarfare surrounding this pandemic should prompt a review of the Biological Weapons Convention and states’ compliance with it.
More than ever, banks must strike a delicate balance between extending needed lines of credit to borrowers while also safeguarding themselves against bad debt. Banks must continue to lend while anticipating loan losses, and shielding lenders and borrowers while managing bad loans is essential to an economic recovery.
While the yen retains its safe haven attributes, Japan’s exporters should be well placed to benefit from the global post-pandemic economic recovery. Japanese government bond nominal yields may not put off investors, given the different outlook for real yields.
With governments around the world gearing up to vaccinate their populations, evidence of real-world effectiveness will be closely watched.
While ensuring digital access is important, fiscal policy and financial incentives that keep up with the times represent a win-win for the people and the government as well as an investment in the future of the economy.
Investors can get in on the global pet boom, or simply invest in a new buddy for life – but consider a rescue from an animal shelter, writes Neil Newman.
While fears of runaway prices should be taken seriously, the priority for economies is still to get the pandemic under control. With the mass roll-out of vaccines proving challenging, markets should be watching how this will affect company profits.
Research shows that past pandemics had no statistically significant impact on real economic growth, inflation, interest rates, exports or wages. The economy will probably rebound rapidly after Covid-19, given the new monetary tools available.
The sector’s stellar performance compared with other commercial real estate assets is attracting a flood of capital seeking profit, pushing prices up and rental yield down. The real challenge is the scarcity of institutional-grade assets.
If Biden really wants to work with allies to tackle ‘serious competitor’ China, clear multilateral commitments are essential, particularly before his powers to fast track trade deals end in July.
It is a good idea to revamp the park’s business model by opening the lower area to the public for free. But outsourcing retail and entertainment businesses to private companies will take the park further from its primary mission as a non-profit organisation.
Children, particularly the very young and those from less well-off families, need in-person classes to learn well, and virtual learning is a poor substitute.