Australia will serve as a guinea pig in China’s services market, bringing expertise to the world’s second-largest economy without dominating it, Trade Minister Andrew Robb said.
Showing posts with label Australia. Show all posts
Showing posts with label Australia. Show all posts
Thursday, November 20, 2014
Wednesday, November 19, 2014
Australian, Indian leaders target free trade pact, economic boost
(Reuters) - Australia and India will push for a free trade pact, Australian Prime Minister Tony Abbott and Indian Prime Minister Narendra Modi said on Tuesday during a rare state visit to Canberra by an Indian leader.
Saturday, July 19, 2014
Australia Says Putin Still Expected at G-20 as MH17 Attack Probed
Russian President Vladimir Putin is still expected to attend the Group of 20 nations summit in November, Australia said, as pro-Russian rebels were blamed for shooting down a Malaysian jet over Ukraine.
Friday, July 4, 2014
Australia rebalancing act to take time, A$ overvalued: RBA
(Reuters) - Australia's economic rebalancing away from the mining boom is still in its early stages, a top central banker said on Thursday, while warning investors they were underestimating the risk of sharp fall in the local dollar.
Wednesday, April 16, 2014
Australia's Sydney gets second airport
Australia has approved the construction of a second international airport in Sydney at the cost of $2.4bn (£1.4bn).
Tuesday, August 27, 2013
Australia's mining boom rolls on for Chinese entrepreneur in the outback
SYDNEY (Reuters) - Former Chinese commodities trader Jerry Ren, who is quietly building a mining empire in the Australian outback, scoffs at talk the resources boom is over.
Tuesday, January 18, 2011
Asia developing countries power global growth, reports UN
Bangkok - Asian developing economies, particularly China and India, were key to helping power the 2010 global economic recovery, the United Nations reported Tuesday, while noting that the developed Asia-Pacific economies had shown only 'lukewarm' recovery.
In its annual World Economic Situation and Prospects 2011 (WESP) report, the UN said that gross domestic product (GDP) in East and South Asia surged ahead by 8.4 per cent in 2010, up from 5.1 per cent in 2009.
But a 'moderate slowdown' is now expected, with GDP growth for the Asian developing economies forecast at 7.1 per cent this year and 7.3 per cent in 2012, the UN said in releasing the report.
'China and India have sustained their leading role in driving the economic recovery in Asia and the world,' the UN said, reporting 10.1 per cent GDP growth last year for China and 8.4 per cent for India.
Singapore (13 per cent) and Taiwan (9 per cent) also stood out with their GDP performance in the East and South Asia region, according to the WESP report.
'Loose monetary conditions and a recovery in export demand led to a rapid expansion in business investment,' the UN said about the Asian region's economic picture in 2010.
'Household consumption also picked up, on the back of higher wages and rising employment. While the recovery is increasingly being supported by private sector demand, government spending continued to provide significant stimulus in many countries, especially in the first half of 2010,' it added.
Looking ahead, the WESP report said 'the outlook for East Asia is favourable, although growth is expected to moderate owing to weakening global conditions and fading government stimulus.'
While the Asia/East Asia region was robust, the WESP said the developed economies of the Asia/Pacific region saw only 'a lukewarm recovery from the global economic crisis,' last year.
Japan, the world's third largest economy, started strongly in 2010, but then began to falter, with GDP growth of an estimated 2.7 per cent for the year.
Moreover, Japan's prospects look weaker with the economy projected to slow further to 1.1 per cent growth this year and 1.4 per cent in 2012, the UN predicted.
Australia, which last year showed 3.3 per cent GDP growth, is seen faring slightly better this year with a 3.7 per cent improvement, but then will ease back to a 3 per cent rate in 2012.
New Zealand, after a 2.7 per cent rise last year, is foreseen slowing down to 2.4 per cent in 2011, before improving again to a 3 per cent growth rate next year, the WESP report said.
Source: http://news.google.com.ua
In its annual World Economic Situation and Prospects 2011 (WESP) report, the UN said that gross domestic product (GDP) in East and South Asia surged ahead by 8.4 per cent in 2010, up from 5.1 per cent in 2009.
But a 'moderate slowdown' is now expected, with GDP growth for the Asian developing economies forecast at 7.1 per cent this year and 7.3 per cent in 2012, the UN said in releasing the report.
'China and India have sustained their leading role in driving the economic recovery in Asia and the world,' the UN said, reporting 10.1 per cent GDP growth last year for China and 8.4 per cent for India.
Singapore (13 per cent) and Taiwan (9 per cent) also stood out with their GDP performance in the East and South Asia region, according to the WESP report.
'Loose monetary conditions and a recovery in export demand led to a rapid expansion in business investment,' the UN said about the Asian region's economic picture in 2010.
'Household consumption also picked up, on the back of higher wages and rising employment. While the recovery is increasingly being supported by private sector demand, government spending continued to provide significant stimulus in many countries, especially in the first half of 2010,' it added.
Looking ahead, the WESP report said 'the outlook for East Asia is favourable, although growth is expected to moderate owing to weakening global conditions and fading government stimulus.'
While the Asia/East Asia region was robust, the WESP said the developed economies of the Asia/Pacific region saw only 'a lukewarm recovery from the global economic crisis,' last year.
Japan, the world's third largest economy, started strongly in 2010, but then began to falter, with GDP growth of an estimated 2.7 per cent for the year.
Moreover, Japan's prospects look weaker with the economy projected to slow further to 1.1 per cent growth this year and 1.4 per cent in 2012, the UN predicted.
Australia, which last year showed 3.3 per cent GDP growth, is seen faring slightly better this year with a 3.7 per cent improvement, but then will ease back to a 3 per cent rate in 2012.
New Zealand, after a 2.7 per cent rise last year, is foreseen slowing down to 2.4 per cent in 2011, before improving again to a 3 per cent growth rate next year, the WESP report said.
Source: http://news.google.com.ua
Monday, January 17, 2011
China's Hu Jintao: Currency system is 'product of past'
Chinese President Hu Jintao has said the international currency system dominated by the US dollar is a "product of the past".
Mr Hu also said China was taking steps to replace it with the yuan, its own currency, but acknowledged that would be a "fairly long process".
The remarks to two US newspapers come ahead of a state visit by the Chinese leader to Washington this week.
They reflect continuing tensions over currency issues between the two powers.
The remarks to the Washington Post and Wall Street Journal came in the form of written responses to questions. Mr Hu also reiterated criticism of a decision by the US Federal Reserve to inject $600bn into the economy, which some argue will weaken the dollar at the expense of other countries' exports.
"The monetary policy of the United States has a major impact on global liquidity and capital flows and therefore, the liquidity of the US dollar should be kept at a reasonable and stable level," President Hu said.
'Important contribution'
Meanwhile, he disagreed with suggestions that letting the yuan appreciate in value would help China to combat inflation.
He said inflation, which reached 5.1% in November - its highest level in 28 months - was "on the whole moderate and controllable".
"We have the confidence, conditions and ability to stabilise the overall price level," he said.
Beijing has previously come under pressure over its currency from the US, which has accused China of manipulating the yuan to help boost Chinese exports.
On Sunday night, three Democratic senators announced they would introduce a new bill to increase penalties the US considers to be "currency manipulators".
However, the move is unlikely to receive support from senior Republicans - who recently took control of the House of Representatives.
The new House speaker, John Boehner, voted against another bill that failed last year that would have helped US companies challenge currency subsidies.
Currency reservations
Despite criticism of the current system, Mr Hu said he believed it would be a long time before the yuan - or renminbi (RMB) - was accepted as a global currency.
"China has made important contribution to the world economy in terms of total economic output and trade, and the RMB has played a role in the world economic development," he said.
"But making the RMB an international currency will be a fairly long process."
Some economists suggest that China's growth strategy - with its focus on exports and state-led investment - may be incompatible with Mr Hu's currency ambitions.
In order for the yuan to oust the dollar as a global reserve currency, international central banks and investors would need to be able to get their hands on huge amounts of the currency.
Yet neither of the ways in which China could supply the world with more yuan is at all appealing to Beijing, according to Michael Pettis, economist at Beijing University.
He says the country could start running big trade deficits with the rest of the world - just as the US has been doing - and finance them by selling their currency to their trade partners.
Or it could allow foreign investors to pour their money into Chinese financial assets - like shares, bonds or yuan bank accounts - matched by similar Chinese investments in the rest of the world.
But Mr Pettis warns that for the numbers to add up, China would need to do these things on an unprecedented scale, which is likely to be unpalatable to the authorities.
Either of these moves is likely to go with an increase in the yuan's value, making Chinese exporters less competitive.
And they may also fuel speculative asset bubbles in China - something that Beijing has been trying to clamp down on of late.
Source: http://www.bbc.co.uk
Mr Hu also said China was taking steps to replace it with the yuan, its own currency, but acknowledged that would be a "fairly long process".
The remarks to two US newspapers come ahead of a state visit by the Chinese leader to Washington this week.
They reflect continuing tensions over currency issues between the two powers.
The remarks to the Washington Post and Wall Street Journal came in the form of written responses to questions. Mr Hu also reiterated criticism of a decision by the US Federal Reserve to inject $600bn into the economy, which some argue will weaken the dollar at the expense of other countries' exports.
"The monetary policy of the United States has a major impact on global liquidity and capital flows and therefore, the liquidity of the US dollar should be kept at a reasonable and stable level," President Hu said.
'Important contribution'
Meanwhile, he disagreed with suggestions that letting the yuan appreciate in value would help China to combat inflation.
He said inflation, which reached 5.1% in November - its highest level in 28 months - was "on the whole moderate and controllable".
"We have the confidence, conditions and ability to stabilise the overall price level," he said.
Beijing has previously come under pressure over its currency from the US, which has accused China of manipulating the yuan to help boost Chinese exports.
On Sunday night, three Democratic senators announced they would introduce a new bill to increase penalties the US considers to be "currency manipulators".
However, the move is unlikely to receive support from senior Republicans - who recently took control of the House of Representatives.
The new House speaker, John Boehner, voted against another bill that failed last year that would have helped US companies challenge currency subsidies.
Currency reservations
Despite criticism of the current system, Mr Hu said he believed it would be a long time before the yuan - or renminbi (RMB) - was accepted as a global currency.
"China has made important contribution to the world economy in terms of total economic output and trade, and the RMB has played a role in the world economic development," he said.
"But making the RMB an international currency will be a fairly long process."
Some economists suggest that China's growth strategy - with its focus on exports and state-led investment - may be incompatible with Mr Hu's currency ambitions.
In order for the yuan to oust the dollar as a global reserve currency, international central banks and investors would need to be able to get their hands on huge amounts of the currency.
Yet neither of the ways in which China could supply the world with more yuan is at all appealing to Beijing, according to Michael Pettis, economist at Beijing University.
He says the country could start running big trade deficits with the rest of the world - just as the US has been doing - and finance them by selling their currency to their trade partners.
Or it could allow foreign investors to pour their money into Chinese financial assets - like shares, bonds or yuan bank accounts - matched by similar Chinese investments in the rest of the world.
But Mr Pettis warns that for the numbers to add up, China would need to do these things on an unprecedented scale, which is likely to be unpalatable to the authorities.
Either of these moves is likely to go with an increase in the yuan's value, making Chinese exporters less competitive.
And they may also fuel speculative asset bubbles in China - something that Beijing has been trying to clamp down on of late.
Source: http://www.bbc.co.uk
Wednesday, November 3, 2010
Asian nations tighten ahead of Fed
By Kevin Brown, James Fontanella-Khan and Peter Smith
(FT) -- India and Australia raised interest rates on Tuesday amid rising inflation fears as the US Federal Reserve prepared to take aggressive monetary policy action to stimulate the stuttering US economy.
Although both countries' central banks cited domestic pressures on inflation as the main reason for the rises, the Reserve Bank of India also drew attention to fears that a new round of quantitative easing in the US and elsewhere could flood emerging markets with fresh capital inflows, putting further pressure on rising asset prices.
"While the ultra-loose monetary policy of advanced economies may benefit the global economy in the medium term, in the short term it will trigger further capital inflows into emerging market economies and put upward pressure on global commodity prices," said Duvvuri Subbarao, the central bank governor.
The Fed is on Wednesday expected to announce a more gradual approach to quantitative easing, unlike the 'shock and awe' it used during the financial crisis, with initial purchases that may amount to $500bn.
QE, or not QE? That is the question
In a research note published on Tuesday, HSBC warned that emerging markets were struggling with what it called an "impossible trinity" -- an inability to allow free flows of capital while simultaneously maintaining a grip over interest rates and exchange rates. That, the bank's economists warned, meant that "the more the west pursues quantitative easing, the more the emerging world, via capital controls, will pursue quantitative tightening".
Economists said a less aggressive approach from the Fed should moderate US dollar weakness. However, the Reserve Bank of Australia's surprise decision to lift its official interest rate by 25 basis points to 4.75 per cent lifted the Australian dollar by as much as 1.2 per cent to a record US$1.003.
The Aussie reached the same level as the US dollar for the first time in mid-October but had since retreated. It was trading at US$0.9882 before the announcement.
The Australian central bank, which had held rates since May, said the country's economy was "subject to a large expansionary shock from the high terms of trade and has relatively modest amounts of spare capacity".
The RBA has now raised rates seven times since October last year when they hit a 49-year low of 3 per cent. Australia stood alone among the developed world by narrowly avoiding technical recession during the global financial crisis, and its central bank was the first among the Group of 20 nations to begin raising rates in the aftermath of the downturn.
Economists expect both central banks to put further rate increases on hold. The RBI, which raised its repo rate -- the rate at which the central bank lends to commercial banks -- by 25 basis points to 6.25 per cent, said the likelihood of further rate actions in the immediate future would be relatively low.
"The RBI has clearly indicated for a pause in the upcoming December policy meeting," said Anubhuti Sahay, an economist at Standard Chartered. "Further rate hikes in 2011, if any, would be conditional on upside surprises in inflation."
(FT) -- India and Australia raised interest rates on Tuesday amid rising inflation fears as the US Federal Reserve prepared to take aggressive monetary policy action to stimulate the stuttering US economy.
Although both countries' central banks cited domestic pressures on inflation as the main reason for the rises, the Reserve Bank of India also drew attention to fears that a new round of quantitative easing in the US and elsewhere could flood emerging markets with fresh capital inflows, putting further pressure on rising asset prices.
"While the ultra-loose monetary policy of advanced economies may benefit the global economy in the medium term, in the short term it will trigger further capital inflows into emerging market economies and put upward pressure on global commodity prices," said Duvvuri Subbarao, the central bank governor.
The Fed is on Wednesday expected to announce a more gradual approach to quantitative easing, unlike the 'shock and awe' it used during the financial crisis, with initial purchases that may amount to $500bn.
QE, or not QE? That is the question
In a research note published on Tuesday, HSBC warned that emerging markets were struggling with what it called an "impossible trinity" -- an inability to allow free flows of capital while simultaneously maintaining a grip over interest rates and exchange rates. That, the bank's economists warned, meant that "the more the west pursues quantitative easing, the more the emerging world, via capital controls, will pursue quantitative tightening".
Economists said a less aggressive approach from the Fed should moderate US dollar weakness. However, the Reserve Bank of Australia's surprise decision to lift its official interest rate by 25 basis points to 4.75 per cent lifted the Australian dollar by as much as 1.2 per cent to a record US$1.003.
The Aussie reached the same level as the US dollar for the first time in mid-October but had since retreated. It was trading at US$0.9882 before the announcement.
The Australian central bank, which had held rates since May, said the country's economy was "subject to a large expansionary shock from the high terms of trade and has relatively modest amounts of spare capacity".
The RBA has now raised rates seven times since October last year when they hit a 49-year low of 3 per cent. Australia stood alone among the developed world by narrowly avoiding technical recession during the global financial crisis, and its central bank was the first among the Group of 20 nations to begin raising rates in the aftermath of the downturn.
Economists expect both central banks to put further rate increases on hold. The RBI, which raised its repo rate -- the rate at which the central bank lends to commercial banks -- by 25 basis points to 6.25 per cent, said the likelihood of further rate actions in the immediate future would be relatively low.
"The RBI has clearly indicated for a pause in the upcoming December policy meeting," said Anubhuti Sahay, an economist at Standard Chartered. "Further rate hikes in 2011, if any, would be conditional on upside surprises in inflation."
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