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") .
Data released on Friday from around the world shows the coronavirus pandemic and lockdowns by governments have pushed the global economy into the sharpest downturn since the Great Depression of the 1930’s. IMF Managing Director, Kristalina Georgieva said, “never in the history of the IMF have we witnessed the world economy coming to a standstill.”
Nonfarm payrolls in the US in March fell by 701,000, ten times more than expected. The unemployment rate rose from 3.5% to 4.4%, the highest level since August 2017.
The Caixin China Composite PMI rebounded to 46.7 from an all-time low of 27.5 the previous month. The gauge for the services sector rose to 43, from 26.5 in February. Both readings indicate that activity is still contracting although at a slower pace than seen in February. The People’s Bank of China will cut the Reserve Requirement Ratio for some medium- and small-sized banks by 100bps in total, releasing a total of 400 billion yuan of funding.
Business activity in Hong Kong worsened in March. The IHS Markit PMI improved slightly to 34.9, up from 33.1 in February, but still deep in contraction territory and the second-worst deterioration since July 1998 when the survey began.
On today’s Money Talk, we’re joined by Alex Wong from Ample Capital and Gavin Parry at Parry International Trading. With the view from the Mainland is Brock Silvers of Adamas Asset Management.
06/04/2020 - 8:09am Business and Market Discussion
Alex Wong, Director of Asset Management at Ample Capital says that compared to the 2008 financial crisis, financial institutions are better equipped to deal with the economic turmoil, thanks to the higher capitalisation of banks and stricter regulatory policies.
Gavin Parry, Managing Director at Parry International Trading warns that the credit markets are crucial in defining the course of the economic downturn and says that a financial crisis similar to that of 2008 is possible if markets were to freeze.
06/04/2020 - 8:23am View from China
Global stocks have fallen after US tech giant Apple said that it won’t meet its quarterly revenue forecast because of constrained supply around the world of its iPhones and lower Chinese demand. The company said it was "experiencing a slower return to normal conditions" than planned. Hong Kong’s unemployment rate climbed for a fourth straight month in January, hitting 3.4%, the highest level since 2016. The jobless rate in the consumption and tourism-related sectors remained at 5.2%, the highest in more than three years. Unemployment in the construction sector rose to 5.7%, the highest level in almost six years. Singapore has unveiled a S$5.6 billion (US$4.02 billion) fiscal stimulus to offset the fallout from the coronavirus in its budget announced yesterday. The extra spending will result in Singapore’s biggest budget deficit since 1997. South Korea’s President Moon Jae-in has warned that “emergency steps” are needed to prevent an escalating economic crisis in the country. He said, “the current situation is more serious than we thought.” The Trump administration is contemplating new bans on exports of American technology to China, including semiconductors and jet engines. It also plans to clamp down further on Huawei’s access to vital semiconductors. On today’s Money Talk are Stewart Aldcroft of CitiTrust, Mark Michelson from IMA Asia and over in Washington D.C., RTHK’s International Economics Correspondent, Barry Wood.
19/02/2020 - 8:08am Business and Market Discussion
Stewart Aldcroft, Chairman of CitiTrust thinks that international firms may reconsider their supply chain strategy by developing new warehouses and factories around Asia, as their over-reliance on the Chinese market is proving to be disruptive in times of crisis.
Mark Michelson, Chairman of the Asia CEO Forum at IMA Asia says that the Hong Kong government's relief measures remain questionable but he highlights that the city has enough reserves to deal with the ongoing crisis.
Barry Wood, RTHK's International Economics Correspondent in Washington, D.C. points out that Apple is likely to reduce its revenue forecast for the year ahead given its high dependence on Mainland China, Taiwan and Hong Kong, which account for over 16 % of its total revenue.