The Markit Economics
released the Caixin China Manufacturing Purchasing Managers Index (PMI) this
morning, showing that operational conditions have improved slightly for May.
According to the
index, total new work rose at a fast pace for Chinese manufacturing firms in
May. Export sales also saw an increase while production was broadly stable. As
production rose and employment levels remained the same, a backlog of work
continued to be on the rise.
In his latest bid to control illegal immigration from
Mexico, U.S President Donald Trump has announced that all goods coming from
Mexico to the U.S will carry a tariff of up to 25 percent.
In a tweet he stated that as of June 10 there will be
a five percent tariff put on all imports coming into the U.S from Mexico, and
this will slowly rise “until such time as illegal migrants coming through
Mexico, and into our Country, STOP. The Tariff will gradually increase until
the Illegal Immigration problem is remedied.
As the world’s two
largest economies, the U.S and China, show no signs of coming to some kind of
agreement when it comes to the trade war, the Dollar reached an almost two-year
high yesterday at 98.371, while the world fears for the worst.
Trade talks have been
going on for ten months now and with President Donald Trump raising tariffs on
Chinese imports earlier on in the month, the economies on both sides of the
Atlantic are continuing to feel the strain.
An ongoing effort is
needed to strengthen the New Zealand financial system, stated the Governor of
the Reserve Bank of New Zealand, Adrian Orr, during a speech, while releasing
the May financial stability report.
As the financial system
risks remain high, the governor suggested that increasing financial institutions’ capital positions are central to ensuring that they can withstand severe shocks. In order to put this
plan in action, Orr said “we have proposed higher capital requirements for banks
and are currently reviewing public submissions on this proposal.
Consultancy firm Duff
& Phelps released a survey today showing that the city of New York has
overtaken London as the world’s pre-eminent financial centre. This shift,
according to the survey, is down to Brexit and all the uncertainty surrounding
Britain’s delay in leaving the European Union.
The annual Global
Regulatory Outlook survey asked 180 executives in asset management, private
equity, hedge funds, banking and brokerage where they thought the top financial
centre is located.
The Bitcoin has
reached its highest level so far in 2019, with a hike of ten percent on Monday,
compared to levels on Friday. The highest the cryptocurrency reached was $8,905
– which is a record high so far this year – before retreating down slightly.
The price of bitcoin,
which is the world’s largest cryptocurrency, dropped to as low as $6,600 on May
17, just before buying pressure pushed prices back above $7,300 on the same
day, according to coindesk.
The world’s two
largest economics, that of the U.S and China, have blamed each other for the
break down in talks over the trade deal. Now the world economy is waiting for
trade tension to end between the two countries and the matter to come to a
conclusion. The end may be close at hand, according to a statement made by the U.S
President Donald Trump that the trade deal saga with China could wrap up very
Although the U.
Bundesamt Deutschland reported that Germany’s gross domestic product (GDP) for
the first quarter of 2019 saw an increase of 0.4 percent compared to the fourth
quarter of 2018.
The last quarter of
2018 saw GDP at 0.0 percent and this jump to 0.4 percent mainly came from
domestic demand, according to the report. So far this year, Germany has also
seen a rise in gross fixed capital formation in machinery and equipment by 1.2
percent as compared to the last four months of 2018. Household final
consumption expenditure rose by 1.
As the fate Brexit
saga continues to play out, and the prime minister Theresa May is running out
of time to save Britain from a no deal, her latest move was to announce that
she will offer MPs the chance to vote on a second Brexit referendum.
In a press conference
May said that she has been listening carefully to those who want a second
referendum and although she does not believe this is a route that the UK should
take, she recognises the genuine and sincere feeling across the house on this
The Reserve Bank of
Australia’s (RBA) Governor, Philip Lowe gave a speech about the economic
outlook and monetary policy to the Economic Society of Australia today, after
the RBA released its latest meeting minutes.
The highlight of the
speech was a suggestion that the bank could consider easing monetary policy at
next month’s meeting in order to drive faster hiring and take unemployment below
five per cent.
Lowe mentioned in his
speech that “the Australian economy can support an unemployment rate of below
five percent without raising inflation concerns.