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Why the world is right to worry about China’s economy

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China’s economic stability is increasingly under scrutiny as it grapples with deflation and a host of internal challenges.

The country saw a decline in consumer prices in July, marking the first time this has occurred in over two years.

Several factors are contributing to China’s economic downturn. These include a rising burden of local government debt, weakened imports and exports, difficulties in the housing market, and a surge in youth unemployment.

These issues are causing unease not only within China but also among global observers. Concerns are growing about the potential repercussions for the international economy.

China’s economic health is increasingly seen as a barometer of the global economy, and any significant downturn in the world’s second-largest economy could have far-reaching consequences.

Country Garden deal

Country Garden, one of China’s largest property developers, has found itself ensnared in a dire financial crisis, with estimated debts of 1.43 trillion yuan ($196 billion) recorded by the close of 2022. This week, the company reported staggering losses of 48.9 billion yuan for the first half of this year.

These ominous developments have ignited widespread concerns that the beleaguered company could face a collapse, potentially sending shockwaves through China’s already beleaguered economy. The nation is grappling with record-high levels of youth unemployment and a decline in consumer spending.

China’s remarkable economic ascent has, in large part, been fueled by the property and construction sectors, which collectively constitute approximately a quarter of the country’s gross domestic product (GDP).

In a significant move to stave off an immediate financial catastrophe, Country Garden’s bondholders convened this week to vote on the postponement of a 3.9 billion yuan ($535 million) bond repayment, providing the company with a lifeline to regain its financial footing. Had the bondholders rejected this extension, Country Garden would have faced the ignominious distinction of becoming the largest Chinese real estate firm to default since its rival, Evergrande, encountered a similar fate in 2021.

However, the latest reports suggest that bondholders have decided to grant Country Garden a reprieve, agreeing to extend the bond repayment deadline until 2026. The company itself has yet to officially confirm the outcome of the vote.

Money

Australia’s inflation hits 3.8%: Budget decisions under pressure

Australia’s inflation hits 3.8%, raising concerns for households; Dr. Enticott discusses implications for everyday Australians and economic planning.

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Australia’s inflation hits 3.8%, raising concerns for households; Dr. Enticott discusses implications for everyday Australians and economic planning.


Australia’s inflation has surged to 3.8%, sparking concern for households and businesses. Experts warn that rising prices could threaten financial stability if the government does not act in the upcoming budget.

Dr Steven Enticott from CIA Tax joins Ticker to break down what this inflation spike means for everyday Australians. He also explains why inflation above the Reserve Bank’s target band is particularly significant and how it affects economic planning.

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#AustraliaInflation #EconomicUpdate #Budget2026 #RBA #FinancialNews #BusinessImpact #HouseholdCosts #TickerNews


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Wall Street gains momentum amid tech and earnings surge

U.S. stocks rose Monday, driven by Oracle gains, as investors overlooked recent silver and bitcoin losses ahead of earnings week.

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U.S. stocks rose Monday, driven by Oracle gains, as investors overlooked recent silver and bitcoin losses ahead of earnings week.

U.S. equities climbed on Monday as Wall Street kicked off a new month of trading. Investors looked past recent losses in silver and bitcoin, with optimism returning to major indices. The S&P 500 rose 0.7%, led by gains in Oracle shares following the company’s announcement to raise up to £50 billion for cloud capacity.

The Dow Jones Industrial Average surged 501 points, while the Nasdaq Composite increased 0.9%. Analysts note that the broader market is showing resilience despite mixed signals from tech and commodities.

More than 100 S&P 500 companies are expected to report earnings this week. Strong growth is predicted, even as some high-profile sell-offs continue to make headlines.

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U.S. dollar weakens while Australian dollar rises amid global market shifts

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US dollar weakens as Trump comments; Australian dollar gains from commodity prices and RBA rate hike expectations


The US dollar is coming under pressure as the economy remains strong and President Trump comments on its decline. We explore how this is impacting major currencies around the world and what it means for investors.

Meanwhile, the Australian dollar is benefiting from rising commodity prices and growing expectations of an RBA rate hike. Global investors are increasingly drawn to Australia’s bond market as economic conditions shift.

Currency trading strategies are adapting to this changing landscape, with potential implications for interest rates and international markets. Steve Gopalan from SkandaFX breaks down the trends.

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#USDDollar #AustralianDollar #ForexTrading #RBA #InterestRates #GlobalEconomy #CurrencyMarket #Ticker


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