China's zero covid policy.

The American Chamber of Commerce in Shanghai called for a relaxation of China’s strict zero-Covid policy as it found that around a fifth of the 307 companies it surveyed were pulling back on investment, mainly as a result of coronavirus measures. The call came as Chen Jining was appointed chief of Shanghai, following the promotion of its former leader, Li Qiang, to China’s highest political echelon. China should «pivot to a more sensible approach to managing Covid-19 based on a reasonable balance between public health and the economy», said Eric Zheng, president of the Shanghai chamber, adding that the policy had «upended business performance expectations». Just 47 per cent thought revenue growth in China would exceed their companies’ growth worldwide.

According to data released on Monday, China’s economy grew 3.9 per cent in the third quarter, a week later than expected. The rise is well below Beijing’s already multi-decade-low growth target of 5.5 per cent, and the World Bank anticipates that China will underperform Asian growth this year for the first time since 1990. In addition, business activity has been hit by a property crisis, which erupted a year ago with the default of developer Evergrande, and zero-Covid controls that have been stepped up this year because of the very infectious Omicron variant.

www.sba.tax

Comments

Cloud Bookkeeping

US FED rate rise.

The US Federal Reserve officials have indicated that they plan to resume increasing interest rates to control inflation in the world's biggest economy. During the June meeting, the Federal Open Market Committee reached a consensus to keep interest rates stable for the time being to evaluate whether further tightening of policy would be necessary. However, the majority of the committee anticipates that additional rate increases will be required in the future. The minutes of the meeting have recently been made public. According to the minutes, most participants believed maintaining the federal funds rate at 5 to 5.25 per cent was appropriate or acceptable, despite some individuals wanting to raise the acceleration due to slow progress in cooling inflation. Although Fed forecasts predicted a mild recession starting later in the year, policymakers faced challenges in interpreting data that showed a tight job market and only slight improvements in inflation. Additionally, officials gr...

EU business slide.

S&P Global’s flash eurozone composite purchasing managers’ index, a key gauge of business conditions for the manufacturing and services sector, fell 1 point to 47.1, figures showed yesterday. That is its lowest level since November 2020 and the fourth consecutive month below the crucial 50 mark separating growth from contraction. One of the few bright spots in the survey was that companies in all sectors reported a slight easing of cost pressures, price growth and supply chain constraints. However, prices charged for goods and services still rose at the sixth fastest rate since such data started in 2002. Jobs growth increased marginally from October but remained low compared with the past 18 months. Following a few months of falling price pressure in manufacturing and services, the October print shows an overall stabilisation said Jens Eisenschmidt, chief European economist at Morgan Stanley. However, German businesses, at the hub of Europe’s energy crisis, reported that manu...

EU debt reduction

Brussels wants to give EU capitals extra time to curb their debts and create space for public investment as part of an overhaul of the EU’s deficit rules . The European Commission would table a proposal at the end of the month to reform the Stability and Growth Pact , under which it would work out multi-year , country-specific plans with capitals for getting their debt burdens under control , EU officials said . The proposals come as member states face mounting fiscal burdens as they spend hundreds of billions of euros sheltering businesses and households from the energy crisis . Under the new blueprint , the commission would propose a four- or five-year plan to an EU member state to get its public debt burden on a credible , downward trajectory , officials said . The national fiscal plan would need to pass a debt sustainability analysis and be approved by the commission and EU council . The new regime would ditch an EU ...

Search This Blog