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
US stocks have soared on reports that Congress is close to an agreement on a historic US$2 trillion stimulus package, including bailouts for stricken companies and payments to individuals and families.
The China Beige Book, a quarterly survey of more than 3,300 firms published by CBB International, says a 10-11% contraction in first quarter GDP is not unreasonable. It found that Chinese companies had their worst quarter on record with every segment of the economy reporting declines. Companies were hit by collapsing revenues and profits and sharp falls in sales. There was a contraction in employment across every sector.
Flash PMI survey data from the US and Europe show that business activity contracted sharply this month. In the US, the IHS Markit flash composite PMI fell to 40.5 in March, from 49.6 the previous month, the steepest decline on record. The flash composite PMI for the eurozone plunged to 31.4 in March from 51.6 in the previous month, the lowest level ever. Business activity in the UK also crumbled at a record pace. The IHS Markit flash UK PMI for services plunged to 35.7 in March from 53.2 in the previous month, the lowest reading since the survey began in 1996.
Our guests on today’s Money Talk are Stewart Aldcroft of CitiTrust, Andrew Sullivan at Pearl Bridge Partners and RTHK’s International Economics Correspondent, Barry Wood.
25/03/2020 - 8:08-8:30 Market and Business Discussion
Stewart Aldcroft, Chairman of CitiTrust points out that the airline industry is composed of different segments ranging from low-cost carriers to high end and therefore, governments will need to decide which ones should be rescued first.
Andrew Sullivan, Director at Pearl Bridge Partners says that some companies need to rethink their long term strategies, as keeping their current staff could help them to rebuild faster.
Barry Wood, RTHK's International Economics Correspondent justifies the US government's plans to assist private enterprises, as some of these firms remain strategic to the country.