Global recession? Warning Shot to World Economy as Singapore Slumps, China Exports Drop

[Denizen]

I am not a personal admirer of Singapore which I consider an illusion without a real base as it is a center for tax evasion by Australian companies and other MNCs to shield their earnings from tax.

I don't even understand why Singapore is held in such high esteem. The only thing apparent in Singapore's economy is the constant erection of expensive high rise buildings which seems to underpin their GDP. Wages in Singapore are low and do not reflect the high position in world GDP rank.

The big news in this article was that while China's exports fell only 1.3%, China's imports fell by 7.3%. This is a huge multiplier effect on Trump's trade war which will produce collateral financial damage around the world.

Thank you, Donald Trump, for the coming recession.

Bloomberg - Are you a robot?

Warning Shot to World Economy as Singapore Slumps, China Exports Drop
By Enda Curran
July 12, 2019, 7:02 AM GMT+7 Updated on July 12, 2019, 4:09 PM GMT+7
Singapore’s trade-reliant economy contracts annualized 3.4%
China exports decline 1.3%, imports plunge 7.3%, data shows

An unexpected contraction in Singapore’s economy and a slump in China’s exports sent a warning shot to the world economy as simmering trade tensions wilt business confidence and activity.
Gross domestic product in export-reliant Singapore shrank an annualized 3.4% in the second quarter from the previous three months, the biggest decline since 2012. China trade figures showed exports fell 1.3% in June from a year ago and imports shrank a more-than-expected 7.3%.
Like South Korea’s economy -- which already contracted in the first quarter -- Singapore is often held up as a bellwether for global demand given its heavy reliance on foreign trade. China’s quarterly GDP numbers on Monday are expected to show a clear weakening in the economy.
“Singapore is the canary in the coal mine, being very open and sensitive to trade,” said Chua Hak Bin, an economist at Maybank Kim Eng Research Pte in Singapore. The data “points to the risk of a deepening slowdown for the rest of Asia.”
Singapore posts sharp contraction in GDP
Across Asia and Europe, factory activity shrank in June while the U.S. showed only a meager economic expansion. Asia is the world’s growth engine and contributes more than 60% of global GDP, according to the International Monetary Fund.
Singapore’s complicated integration in regional and global supply chains makes it vulnerable to a slowdown in world growth and tariff wars. Exports -- which amount to 176% of GDP -- have already taken a big hit over the past few months, with shipments plunging in May by the most since early 2013.
“I thought the numbers would be bad, but this is ugly,” Chua said. “The whiff of a technical recession is real. We thought it might be shallow, but the risk now is that it might be deeper.”
Singapore isn’t expecting a full-year recession yet but the government is “monitoring the situation closely,” Finance Minister Heng Swee Keat said in a Facebook post. The government has said it will likely revise its growth forecast range of 1.5%-2.5% for this year.
The Singapore dollar fell as much as 0.1% to 1.3588 against the U.S. dollar after the data.
A global slowdown and the U.S.-China trade tensions are rippling across the region. A restart to U.S.-China trade negotiations has done little to convince economists that the global economy can recover. Morgan Stanley analysts last month cut both their 2019 and 2020 growth forecasts by 20 basis points each, to 3% and 3.2%.
“With a resolution of the U.S.-China trade conflict and a rebound in the global tech cycle both still elusive, the downside risks to growth in the region are mounting,” said Krystal Tan, an economist at Australia & New Zealand Banking Group Ltd. in Singapore.
Singapore exports dive on plunge in electronics shipments
Aside from trade tensions, a cooling technology boom is weighing on the outlook of electronics manufacturers like Singapore. About 40% of the city state’s exports are integrated circuits alone, according to Tuuli McCully, head of Asia-Pacific economics at Scotiabank in Singapore.
“The downturn in the global semiconductor sector is reflected in Singapore more than in most countries in the region,” McCully said.
What Bloomberg Economists Say
“As weak as Singapore’s standstill in 2Q GDP was, 2H will probably be much worse without a rapprochement in U.S.-China trade relations. Our forecast for a 0.2% year-on-year contraction in 2019 remains on course.”
-- Tamara Henderson, Asean economist
Weaker growth may prompt Asian central banks to step up policy action to bolster growth. Of the 16 economists surveyed by Bloomberg, half expect the Bank of Korea to lower its benchmark interest rate by 25 basis points next week. The Monetary Authority of Singapore, which uses the exchange rate as its main tool, could also ease in October after leaving policy settings unchanged in April.

 

[Dekster]

I am heavily invested in Asia and will continue to be so. May not be great in the short term, but eventually a democrat will come along and start selling our country out again and I will be positioned to make a mint.

 

[Mikeoxenormous]

I am not a personal admirer of Singapore which I consider an illusion without a real base as it is a center for tax evasion by Australian companies and other MNCs to shield their earnings from tax.

I don't even understand why Singapore is held in such high esteem. The only thing apparent in Singapore's economy is the constant erection of expensive high rise buildings which seems to underpin their GDP. Wages in Singapore are low and do not reflect the high position in world GDP rank.

The big news in this article was that while China's exports fell only 1.3%, China's imports fell by 7.3%. This is a huge multiplier effect on Trump's trade war which will produce collateral financial damage around the world.

Thank you, Donald Trump, for the coming recession.

Bloomberg - Are you a robot?

Warning Shot to World Economy as Singapore Slumps, China Exports Drop
By Enda Curran
July 12, 2019, 7:02 AM GMT+7 Updated on July 12, 2019, 4:09 PM GMT+7
Singapore’s trade-reliant economy contracts annualized 3.4%
China exports decline 1.3%, imports plunge 7.3%, data shows

An unexpected contraction in Singapore’s economy and a slump in China’s exports sent a warning shot to the world economy as simmering trade tensions wilt business confidence and activity.
Gross domestic product in export-reliant Singapore shrank an annualized 3.4% in the second quarter from the previous three months, the biggest decline since 2012. China trade figures showed exports fell 1.3% in June from a year ago and imports shrank a more-than-expected 7.3%.
Like South Korea’s economy -- which already contracted in the first quarter -- Singapore is often held up as a bellwether for global demand given its heavy reliance on foreign trade. China’s quarterly GDP numbers on Monday are expected to show a clear weakening in the economy.
“Singapore is the canary in the coal mine, being very open and sensitive to trade,” said Chua Hak Bin, an economist at Maybank Kim Eng Research Pte in Singapore. The data “points to the risk of a deepening slowdown for the rest of Asia.”
Singapore posts sharp contraction in GDP
Across Asia and Europe, factory activity shrank in June while the U.S. showed only a meager economic expansion. Asia is the world’s growth engine and contributes more than 60% of global GDP, according to the International Monetary Fund.
Singapore’s complicated integration in regional and global supply chains makes it vulnerable to a slowdown in world growth and tariff wars. Exports -- which amount to 176% of GDP -- have already taken a big hit over the past few months, with shipments plunging in May by the most since early 2013.
“I thought the numbers would be bad, but this is ugly,” Chua said. “The whiff of a technical recession is real. We thought it might be shallow, but the risk now is that it might be deeper.”
Singapore isn’t expecting a full-year recession yet but the government is “monitoring the situation closely,” Finance Minister Heng Swee Keat said in a Facebook post. The government has said it will likely revise its growth forecast range of 1.5%-2.5% for this year.
The Singapore dollar fell as much as 0.1% to 1.3588 against the U.S. dollar after the data.
A global slowdown and the U.S.-China trade tensions are rippling across the region. A restart to U.S.-China trade negotiations has done little to convince economists that the global economy can recover. Morgan Stanley analysts last month cut both their 2019 and 2020 growth forecasts by 20 basis points each, to 3% and 3.2%.
“With a resolution of the U.S.-China trade conflict and a rebound in the global tech cycle both still elusive, the downside risks to growth in the region are mounting,” said Krystal Tan, an economist at Australia & New Zealand Banking Group Ltd. in Singapore.
Singapore exports dive on plunge in electronics shipments
Aside from trade tensions, a cooling technology boom is weighing on the outlook of electronics manufacturers like Singapore. About 40% of the city state’s exports are integrated circuits alone, according to Tuuli McCully, head of Asia-Pacific economics at Scotiabank in Singapore.
“The downturn in the global semiconductor sector is reflected in Singapore more than in most countries in the region,” McCully said.
What Bloomberg Economists Say
“As weak as Singapore’s standstill in 2Q GDP was, 2H will probably be much worse without a rapprochement in U.S.-China trade relations. Our forecast for a 0.2% year-on-year contraction in 2019 remains on course.”
-- Tamara Henderson, Asean economist
Weaker growth may prompt Asian central banks to step up policy action to bolster growth. Of the 16 economists surveyed by Bloomberg, half expect the Bank of Korea to lower its benchmark interest rate by 25 basis points next week. The Monetary Authority of Singapore, which uses the exchange rate as its main tool, could also ease in October after leaving policy settings unchanged in April.

Some years are good, some years are bad, when president Trump took office, the libtardovich economic "experts" said the market would crash when it was 17K. Today, it is over 27K, so maybe a recession is coming, maybe it isnt. Now that we are energy independent and make our own stuff again, we can weather the bad times better than the rest of the world. Thanks you President Trump for "Making America Great Again" and keeping it that way.

 

[Denizen]

Spending your food stamps on imported noodle packs is not being "heavily invested in Asia".

 

[The Irish Ram]

Yes, Thank you Trump.
Finally someone is telling China it's going to stop stealing and benefiting from our technology, to our disadvantage.

 

[Denizen]

Yes, Thank you Trump.
Finally someone is telling China it's going to stop stealing and benefiting from our technology, to our disadvantage.

What disadvantage is that?

Chinese goods are often sold in the USA with a 600+% mark-up on ex-factory price which means that 84% of the value of sales goes to Americans.

 

[Aletheia4u]

I am not a personal admirer of Singapore which I consider an illusion without a real base as it is a center for tax evasion by Australian companies and other MNCs to shield their earnings from tax.

I don't even understand why Singapore is held in such high esteem. The only thing apparent in Singapore's economy is the constant erection of expensive high rise buildings which seems to underpin their GDP. Wages in Singapore are low and do not reflect the high position in world GDP rank.

The big news in this article was that while China's exports fell only 1.3%, China's imports fell by 7.3%. This is a huge multiplier effect on Trump's trade war which will produce collateral financial damage around the world.

Thank you, Donald Trump, for the coming recession.

Bloomberg - Are you a robot?

Warning Shot to World Economy as Singapore Slumps, China Exports Drop
By Enda Curran
July 12, 2019, 7:02 AM GMT+7 Updated on July 12, 2019, 4:09 PM GMT+7
Singapore’s trade-reliant economy contracts annualized 3.4%
China exports decline 1.3%, imports plunge 7.3%, data shows

An unexpected contraction in Singapore’s economy and a slump in China’s exports sent a warning shot to the world economy as simmering trade tensions wilt business confidence and activity.
Gross domestic product in export-reliant Singapore shrank an annualized 3.4% in the second quarter from the previous three months, the biggest decline since 2012. China trade figures showed exports fell 1.3% in June from a year ago and imports shrank a more-than-expected 7.3%.
Like South Korea’s economy -- which already contracted in the first quarter -- Singapore is often held up as a bellwether for global demand given its heavy reliance on foreign trade. China’s quarterly GDP numbers on Monday are expected to show a clear weakening in the economy.
“Singapore is the canary in the coal mine, being very open and sensitive to trade,” said Chua Hak Bin, an economist at Maybank Kim Eng Research Pte in Singapore. The data “points to the risk of a deepening slowdown for the rest of Asia.”
Singapore posts sharp contraction in GDP
Across Asia and Europe, factory activity shrank in June while the U.S. showed only a meager economic expansion. Asia is the world’s growth engine and contributes more than 60% of global GDP, according to the International Monetary Fund.
Singapore’s complicated integration in regional and global supply chains makes it vulnerable to a slowdown in world growth and tariff wars. Exports -- which amount to 176% of GDP -- have already taken a big hit over the past few months, with shipments plunging in May by the most since early 2013.
“I thought the numbers would be bad, but this is ugly,” Chua said. “The whiff of a technical recession is real. We thought it might be shallow, but the risk now is that it might be deeper.”
Singapore isn’t expecting a full-year recession yet but the government is “monitoring the situation closely,” Finance Minister Heng Swee Keat said in a Facebook post. The government has said it will likely revise its growth forecast range of 1.5%-2.5% for this year.
The Singapore dollar fell as much as 0.1% to 1.3588 against the U.S. dollar after the data.
A global slowdown and the U.S.-China trade tensions are rippling across the region. A restart to U.S.-China trade negotiations has done little to convince economists that the global economy can recover. Morgan Stanley analysts last month cut both their 2019 and 2020 growth forecasts by 20 basis points each, to 3% and 3.2%.
“With a resolution of the U.S.-China trade conflict and a rebound in the global tech cycle both still elusive, the downside risks to growth in the region are mounting,” said Krystal Tan, an economist at Australia & New Zealand Banking Group Ltd. in Singapore.
Singapore exports dive on plunge in electronics shipments
Aside from trade tensions, a cooling technology boom is weighing on the outlook of electronics manufacturers like Singapore. About 40% of the city state’s exports are integrated circuits alone, according to Tuuli McCully, head of Asia-Pacific economics at Scotiabank in Singapore.
“The downturn in the global semiconductor sector is reflected in Singapore more than in most countries in the region,” McCully said.
What Bloomberg Economists Say
“As weak as Singapore’s standstill in 2Q GDP was, 2H will probably be much worse without a rapprochement in U.S.-China trade relations. Our forecast for a 0.2% year-on-year contraction in 2019 remains on course.”
-- Tamara Henderson, Asean economist
Weaker growth may prompt Asian central banks to step up policy action to bolster growth. Of the 16 economists surveyed by Bloomberg, half expect the Bank of Korea to lower its benchmark interest rate by 25 basis points next week. The Monetary Authority of Singapore, which uses the exchange rate as its main tool, could also ease in October after leaving policy settings unchanged in April.

It will not affect our economy. It will just make people to buy more American's products. I remember a while back. That they had raised the taxes on Japanese's import on their cars. Because back then, you can buy a brand new Japanese's vehicles for half the price of an American car. Everyone were buying Japanese vehicles because they were very cheap and fuel efficient.
But now the Left is pushing out lies that it will hurt the economy.


TOKYO — An ascendant Asian nation with a powerful domestic auto industry that brims with international ambition. A ballooning trade surplus with the U.S. And a populist American president threatening punishing tariffs in a desperate attempt to level the field.

The scenario seems ripped from the pages of today's headlines. But the country in question is Japan, not China. And the president is Bill Clinton, not Donald Trump. How this year's trade war is a different battle

 

[The Irish Ram]

Yes, Thank you Trump.
Finally someone is telling China it's going to stop stealing and benefiting from our technology, to our disadvantage.

What disadvantage is that?

Chinese goods are often sold in the USA with a 600+% mark-up on ex-factory price which means that 84% of the value of sales goes to Americans.

It’s a longstanding issue. That 2011 report by the U.S. International Trade Commission estimated that U.S. IP-intensive firms lost $48 billion in 2009 because of Chinese infringements. A 2016 USTR’s report highlighted serious problems, especially concerning the theft of trade secrets. "Offenders in many cases continue to operate with impunity," the report said.

Bloomberg - Are you a robot?

 

[Mikeoxenormous]

Yes, Thank you Trump.
Finally someone is telling China it's going to stop stealing and benefiting from our technology, to our disadvantage.

What disadvantage is that?

Chinese goods are often sold in the USA with a 600+% mark-up on ex-factory price which means that 84% of the value of sales goes to Americans.

And why is there such a mark up in the value of sales? Because the Socialists of China have slave labor at 50 cents a day wages, and libtards want this type of working conditions here in the US of A.

 

[Bruce_T_Laney]

Spending your food stamps on imported noodle packs is not being "heavily invested in Asia".

And comments like that is why some do not even bother discussing economics with those like you...

 

[Denizen]

Spending your food stamps on imported noodle packs is not being "heavily invested in Asia".

And comments like that is why some do not even bother discussing economics with those like you...

Thanks for your support. You are very hard on Dekster.

 

[Bruce_T_Laney]

Spending your food stamps on imported noodle packs is not being "heavily invested in Asia".

And comments like that is why some do not even bother discussing economics with those like you...

Thanks for your support. You are very hard on Dekster.

And your trolling is not new.

Fact is the start of recession in the Asian region usually Start with China and Japan in today times when we will know if it is just a regional or world one is when we slowing in key States like California and Texas.

Blaming Trump for the recession at this point is a little quick and many other factors must be taken into consideration because as much as you believe Trump is the only part of our government it take many people and States to drive our economy.

 

[Denizen]

How can one not blame Trump as the trade deficit reaches new highs? Trump is marketing turds with gold paint as nuggets.

If imports stopped, the US economy would collapse.

Trump is too frightened to challenge China further.

"The wider trade deficit added to weak housing, manufacturing, business investment and moderate consumer spending in offering a downbeat assessment of the economy."

U.S. trade deficit surges to five-month high as imports soar - Reuters

U.S. trade deficit surges to five-month high as imports soar

WASHINGTON (Reuters) - The U.S. trade deficit jumped to a five-month high in May as imports of goods increased, likely as businesses restocked ahead of an increase in tariffs on Chinese merchandise, eclipsing a broad rise in exports.
FILE PHOTO: An aerial photo looking north shows shipping containers at the Port of Seattle and the Elliott Bay waterfront in Seattle, Washington, U.S. March 21, 2019. REUTERS/Lindsey Wasson/File Photo
The Commerce Department said on Wednesday the trade deficit surged 8.4% to $55.5 billion. Data for April was revised higher to show the trade gap widening to $51.2 billion instead of the previously reported $50.8 billion. Economists polled by Reuters had forecast the trade gap widening to $54.0 billion in May.
The goods trade deficit with China, a focus of President Donald Trump’s “America First” agenda, increased 12.2% to $30.2 billion, with imports rising 12.8%. Trump recently raised additional import tariffs on Chinese goods, prompting Beijing to retaliate.
Trump and Chinese President Xi Jinping last week agreed to a trade truce and a return to talks. White House trade adviser Peter Navarro said on Tuesday talks were heading in the right direction, but it would take time to get the right deal made.

The U.S.-China trade tensions have caused wild swings in the trade deficit, with exporters and importers trying to stay ahead of the tariff fight between the two economic giants.
In May, goods imports increased 4.0% to $217.0 billion. Imports of consumer goods rose $1.4 billion, while those of motor vehicle and parts soared $2.3 billion to a record high. There were also big increases in imports of capital goods and industrial supplies and materials.
Goods exports rose 2.8% to $140.8 billion. Exports of consumer goods increased $0.8 billion and soybean exports advanced $0.7 billion. Civilian aircraft exports rose $0.5 billion. Gains are, however, likely to be capped after Boeing in March suspended deliveries of its fastest-selling MAX 737 jetliner. The aircraft was grounded indefinitely following two deadly crashes in five months. Production of the troubled plane has been cut.
When adjusted for inflation, the goods trade deficit increased $4.8 billion to $87.0 billion in May. The increase in the so-called real goods trade deficit suggests that trade could be a drag on second-quarter gross domestic product.

Trade contributed 0.94 percentage point to the economy’s 3.1% annualized growth pace in the first quarter. The Atlanta Fed is forecasting gross domestic product rising at a 1.5% rate in the April-June quarter.
The wider trade deficit added to weak housing, manufacturing, business investment and moderate consumer spending in offering a downbeat assessment of the economy.