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 every weekday morning 8 to 8:30 a.m. 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 "MoneytalkRadio3") .
The US has agreed to suspend this week’s tariff hikes on Chinese imports after two days of trade talks in Washington. An interim "phase one deal" between the US and China was announced by President Trump on Friday that would include increased agricultural purchases and address financial services and technology theft.
The US Federal Reserve announced Friday that it would be adding assets to its balance sheet once again in order to avoid a repeat of the freeze in short-term lending markets that occurred in September. The Fed will buy US$60bn a month of Treasury bills at least until the middle of next year.
The more than year long slump in China’s car market has continued. The China Passenger Car Association reported Saturday that mainland passenger car sales fell 6.6% y/y in September, down for the 3rd straight month, and for 15 out of the last 16 months.
A proposal to set up an offshore yuan-denominated “Nasdaq” in Macau has been submitted to Beijing for consideration. The Monetary Policy of Macau said it was conducting a feasibility study and China’s central government might give its blessing to the plan by mid-December, the 20th anniversary of the city’s handover to China.
On today’s Money Talk are Alex Wong of Ample Capital and Le Xia from BBVA Research. Providing the view from the mainland is Brock Silvers at Kaiyuan Capital.
14/10/2019 - 8:09 Business and Market Discussions
Alex Wong, Director of Asset Management at Ample Capital, comments that the interim US-China "phase one" trade deal signals some progress but will not have a significant impact on business investment.
Le Xia, Chief Economist for Asia at BBVA Research, expects that if the relationship between the US and China improves, it may lower the Hong Kong protestors' incentive to take part in radical demonstrations.
14/10/2019 - 8:24 View From China
British Foreign Secretary Jeremy Hunt said Saturday there will be "serious consequences" if the British-flagged tanker taken over by Iran in the Strait of Hormuz isn’t released and he urged Iran to reverse its "illegal" seizure of the vessel.
The Federal Reserve is under fire for miscommunication over its rate cutting policy. On Thursday, New York Fed Chairman John Williams urged the central bank to “act quickly” when the economy was slowing & rates were low. Expectations of a 50bps rate cut shot up to over 70%. However, on Friday, the New York Fed issued an unprecedented statement saying Mr. Williams' speech was not about potential policy actions at the July FOMC meeting but rather "an academic speech on 20 years of research." Afterwards the odds of a 50bps cut plunged back down to 23%.
President Trump tweeted “because of the faulty thought process we have going for us at the Federal Reserve, we pay much higher interest rates than countries that are no match for us economically”, adding “I like John Williams' first statement much better than his second.”
China announced new measures on Saturday to open up the financial sector to foreign investors. The mainland will scrap foreign ownership limits for life insurance companies, securities brokerages and asset management firms.
Swiss luxury brands company Richemont, the owner of Cartier, is the latest firm to report business being hit by the protests in Hong Kong. Sales in APAC rose in the second quarter, except for Hog Kong, a key market for its watches, where sales sank due to the political unrest.
Japanese beer maker Asahi will buy the Australian business of Anheuser-Busch InBev for US$11.3bn. It makes Foster's lager & accounts for half of Australia's beer market. AB InBev said it was still interested in reviving the flotation of Budweiser APAC in Hong Kong.
Cathay Pacific has completed its takeover of HK Express, Hong Kong’s only low-cost airline, paying HK$4.93 billion. The acquisition puts Cathay Pacific in control of 3 out of 4 of Hong Kong 's commercial airlines.
On today’s Money Talk, reviewing the latest business headlines are Andrew Sullivan of Pearl Bridge Partners and Le Xia from BBVA Research. Providing the view from the mainland is Ben Cavender at the China Market Research Group.
After 8:30 we’ll discuss the trade war with Louis Chan from the Hong Kong Trade Development Council, Raymond Young of the Chinese Manufacturers' Association of Hong Kong and William Zarit, Chairman Emeritus of the American Chamber of Commerce in China.
22/07/2019 - 8:00-8:20 Market Discussion
Le Xia, Chief Economist for Asia at BBVA Research, says that the US-China trade dispute is impacting Hong Kong exports and could send Hong Kong into a recession.
Andrew Sullivan, Director of Pearl Bridge Partners, comments that the Fed should not cut interest rates at all as previous rate reductions have not fed through to the real economy.
22/07/2019 - 8:20-8:30 View from China
22/07/2019 - 8:30-9:00 Monday Debate - Sino-US Trade War
Raymond Young, CEO of the Chinese Manufacturers' Association of Hong Kong, comments that around 3000 members in the commercial sector have reported a loss of business of around 50-60% since the tariffs came in to effect and some of them are considering relocating their businesses.
William Zarit, Chairman of the American Chamber of Commerce in China, says that the trade war has had an impact of up to 1% on China's GDP but the economy was slowing even before the trade war started.
Louis Chan, Assistant Principal Economist at the Hong Kong Trade Development Council, suggests the Hong Kong government needs to find flexible ways to tackle the trade dispute.