Peter Lewis: A fast moving and topical business and finance show.
A fast moving and topical business and finance show bringing you breaking business and economic news and financial market updates. Presented by former CEO and investment bank global trading head Peter Lewis, with over 30 years' industry experience. Join Peter and his expert guests for analysis and discussion on the day's top business stories live from 8 a.m. to 8.30 a.m. every weekday morning on RTHK Radio 3. We have a podcast to download after the show and you can also listen through the RTHK Radio 3 website live or later in the day. We welcome your questions, comments and feedback to read out in the show. You can email us at email@example.com, post on our Facebook page "Money Talk on RTHK Radio 3 " or find us on twitter "MoneytalkR3") .
U.S. Treasury Secretary Steven Mnuchin said yesterday the U.S. is “putting the trade war on hold” with China and will delay the imposition of tariffs. A joint statement from the U.S. and China at the end of bilateral trade talks in Washington said that China had agreed to buy “significantly” more US goods and services in an effort to reduce the trade imbalances between the two countries.
Italy appears set to have a new government with Florence University law professor Giuseppe Conte chosen as the next Prime Minister. The latest development occurred after the two populist parties the 5-Star Movement and the far-right League reached an accord which promised to ramp up public spending, make billions of euros in tax cuts and to roll-back pension reforms introduced at the height of the 2011 debt crisis. Investors took fright at the proposals selling the countries shares and government bonds on Friday.
Elsewhere in the markets a toxic combination of rising interest rates, a surging oil price and a strengthening U.S. dollar have sent emerging market currencies into a tailspin, suffering their worst week in a year and a half.
Public consultations on a new minimum wage for Hong Kong, closed yesterday. The minimum wage is reviewed every two years and currently stands at HK$34.50. That compares to a national minimum wage in the United States of an equivalent HK$56.91 (US$7.25). Hong Kong’s unemployment rate hit a 20-year low of 2.8% in the 3-month period to April.
Joining today’s Money Talk are Steve Wang from CITIC CLSA and Sam Faveur of Mandarin Capital. Providing the view from the mainland is Ben Cavender, of the China Market Research Group in Shanghai.
21/05/2018 - 8:09 Business and Market Discussion
Steve Wang, Senior Credit Analyst at CITIC CLSA, comments that the US-China trade war is not over and there are still risks in resolving the trade tensions between the two countries. However, he adds that the joint statement is a good development.
Sam Faveur, CEO and Founder of Mandarin Capital, says that the economic and fiscal policies of the coalition government in Italy could lead to market disruption.
21/05/2018 - 8:24 View From China
US President Donald Trump will hold his much-anticipated summit with North Korea’s leader, Kim Jong Un, on June 12 in Singapore.
A new political era has dawned in Malaysia as the world's oldest leader, 92-year-old Mahathir Mohamad, was sworn in as prime minister of Malaysia, and he signalled a tougher line on a surge of Chinese investment into the country.
The Bank of England has held interest rates steady and cut the UK growth forecast for the year down to 1.4%. Sterling fell after the decision to $1.352 and HK$10.61
Producer price inflation on the mainland has picked up for the first time in 7 months. However, the rise in consumer price inflation slowed to 1.8% in April as pork prices, which are weighted heavily in China’s CPI basket, dropped 16%.
US consumer prices climbed by a less than expected 2.2% in April compared to a year ago sending the 10-year Treasury bond yield 4bps lower to 2.96%.
On Wall Street, US stocks have moved into positive territory for the year with shares in Apple up for the ninth session in a row to a new record high. The Dow notched its sixth day of wins climbing 197 points to 24,739. The S&P500 and the NASDAQ were both up 0.9%.
Ratings agency Fitch has downgraded its view of the environment for Hong Kong banks citing concerns over the “growing influence of the links between Hong Kong and the mainland,” where “China's governance standards are substantially lower than Hong Kong's.”
On Money Talk this morning, we speak to Sabine Bauer, Senior Director for Financial Institutions at Fitch Ratings. We hear from Francis Lun of GEO Securities and Wendy Liu from Nomura. Giving us an update from Sydney is Toby Lawson of Societe Generale Australia.
11/05/2018 - 8:05 Sabine Bauer : Fitch Ratings
11/05/2018 - 8:09 Business and Market Discussion
However, Francis Lun, CEO of GEO Securities, disagrees with Fitch Ratings' assessment. He believes that the deterioration in China’s credit conditions will not affect the profitability of Hong Kong banks.
Wendy Liu, Chief Greater China Equity Strategist at Nomura, says that it will hard for China to reduce its trade surplus with the US by $100bn within this year. Ms. Liu points out that with the exception of high-end technology products, which are not for sale, there is not much to purchase from the US on China's shopping list.
11/05/2018 - 8:25 View From Australia