Tag Archives: Asian economy

Market conditions will ‘win’ in the Australia-China trade dispute: Platts | Instant News

SINGAPORE – Australia is at an disadvantage in its trade dispute with China, which has found alternative sources such as the US for supplies, according to S&P Global Platts.

China currently imports many products from the US, including wheat, corn and soybeans, Andrei Agapi, director of the Asia-Pacific pricing association for agriculture at Platts, told CNBC’s “Squawk Box Asia” on Tuesday.

The purchase came after Beijing agrees to make a “substantial purchase” US manufacturing, agricultural and energy products, along with services, as part of a “phase one” trade agreement between two economic powers.

Analysts said China had “the potential to buy more” as it wanted to replenish its inventories and reserves. Agapi explains, “There is room for more suppliers, this is not just a US game.”

“China doesn’t really need wheat and barley … from Australia. More Australia needs the Chinese market,” Agapi said.

A farmer operates a combined harvester as he unloads wheat into a grain cart during harvest at a farm near Gunnedah, New South Wales, Australia, on Tuesday, November 10, 2020.

David Gray | Bloomberg via Getty Images

One of the factors driving interest in buying agriculture is China’s recovery from African swine fever, which crushed the country’s pig herds and shipped them. Pork prices are soaring for the months to November. The economy has also largely recovered from the coronavirus. As a result, Agapi says “feed requests are going online quite aggressively.”

“Whatever is the cheapest supply and the most supply, it will be appreciated,” he said.

That could bode well for Australian farmers, who have emerged from three consecutive years of drought and are in “a pretty good time to compete” as crop yields increase, Agapi explained. That gives farmers more flexibility to price their produce on a competitive basis.

But in May, China charges hefty rates for Australian barley, set the price for crops from the Chinese market. The episode highlighted the importance of Australian exporters to diversify their markets, said Agapi.

The trade dispute between the two countries escalated over the weekend when China again imposed tariffs on Australian products, this time targeting the country’s wine exports.

“Australia has had to scramble to find several homes for the cargo, some of which are already afloat and en route… to China,” Agapi said, referring to the grain levy. “If the decision comes from China to withhold any imports – if there is no diversification – then exports are suddenly abandoned.”

That doesn’t mean that there aren’t buyers elsewhere for the crop. Analysts explain that Australian barley and wheat have been “historically very competitive” in places like Indonesia and the Philippines in Southeast Asia and even in the Middle East.

“You can always find a buyer,” says Agapi. “It’s about price, basically.”


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Singapore and Hong Kong push their travel bubble again, this time beyond 2020 | Instant News

A closed departure hall at the terminal at Hong Kong International Airport.Miguel Candela | SOPA Pictures | LightRocket via Getty Images SINGAPORE – Singapore and Hong Kong have again delayed the start of their bilateral “travel bubble” – delaying the plan beyond 2020, authorities in both cities said on Tuesday. The latest postponement followed an earlier decision to delay the launch of the air bubble for two weeks, after Hong Kong reported a resurgence of new cases of Covid-19. Inaugural flights under the arrangement – which initially allowed travelers not to be quarantined – were due to begin on November 22. Singapore and Hong Kong have taken a closer look at the COVID-19 situation in Hong Kong, and given that unrelated local cases are still high, Both sides have decided to postpone the start of the Singapore air travel bubble. Hong Kong (ATB) beyond December 2020, “the Singapore Civil Aviation Authority (CAAS) said in a statement. said they would review the arrangement at the end of December to decide on a new start date. Since the travel bubble was first postponed, new Covid-19 infections in Hong Kong have continued to climb. The city reported 76 more cases on Monday – bringing its cumulative infections since the outbreak to 6,315, according to official data, while Singapore appears to have kept its national outbreak under control, mainly reporting imported cases in recent weeks. The city’s cumulative case count reached 58,218 on Monday, according to data from its health ministry. The Singapore-Hong Kong travel bubble was first announced in October as Asia’s two main business hubs were seeking to undo some of the economic damage caused by the coronavirus pandemic. Their tourism and aviation industries. The two cities do not have domestic air transport markets, and their tourism and aviation industries rely heavily on international travel. Last year, Hong Kong recorded more than 453,000 visitor arrivals from Singapore, while Singapore welcomed 489,000 visitors from Hong Kong, official statistics from both sides show. The bilateral travel bubble will not bring back as many visitors. , but Singapore Transport Minister Ong Ye Kung hailed the arrangement as “the first of its kind” that could help restore international travel. – CNBC’s Karen Gilchrist contributed to this report. .

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China’s wine tariffs will hurt small Australian producers: Trade groups | Instant News

Wine bottles imported from Australia are on display for sale in supermarkets on November 27, 2020 in Hangzhou, Zhejiang Province, China.

Long Wei | VCG | Getty Images

Small exporters, grape growers and regional communities will feel the brunt of China’s decision to impose high tariffs on Australian wines. That’s according to Tony Battaglene, chief executive of Wines and Wines Australia, a national association of wine and wine producers.

China’s commerce ministry on Friday announced initial anti-dumping duties ranging from 107% to 212% on imports of Australian packaged wine, which took effect the following day. The following China’s anti-dumping investigation to be imported wine from Australia earlier this year.

“It will have a devastating impact,” Battaglene said Monday on CNBC. “Asian Squawk BoxHe explained that the bigger Australian wine exporters with diversified portfolios will likely be able to overcome China’s decision although they will also feel the pain.

“Grape growers, regional communities and small exporters have little adaptability. They are the ones who will suffer,” Battaglene said.

Entering another market in a short period of time is not easy because it takes time, relationships and money to develop that market, he added. “We don’t have that. This is our peak export time – 50% of our product went to China in the last four months of this year. It’s closed. So this product has nowhere else to go.”

Chinese market

‘Extreme disappointment’

Economists said that any potential import restrictions from China on Australian mining exports would have a greater impact as they take up a large share of the export basket. The majority of China’s iron ore imports, which are needed in steelmaking, are sourced from Australia, according to Oxford Economics. He added, given the difficulty of finding alternative sources in the short term, China has not imposed strict regulations on Australian iron ore exports.

The second largest economy in the world remains Australia’s largest trading partner in goods and services and accounts for around 27.4% of Australia’s trade with the world, according to government data.

Earlier this month, China and Australia were signatories to the world’s largest trading bloc – the Regional Comprehensive Economic Partnership, or RCEP.


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The NZ government asked the central bank to stabilize soaring house prices | Instant News

Deputy Prime Minister Grant Robertson addresses the media during a post-cabinet press conference in Parliament on November 9, 2020 in Wellington, New Zealand.

Hagen Hopkins | Getty Images News | Getty Images

New Zealand Finance Minister Grant Robertson said on Tuesday that the government is reviewing policies relating to the housing market and has sought advice from the central bank on how it can help stabilize property prices.

Robertson confirmed that he has written to Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr seeking his advice, and has proposed including stabilizing house prices as a factor in submitting considerations when formulating monetary policy.

“I hope to accept the suggestion towards the end of the year, and will discuss it with the cabinet as soon as possible after that,” said Robertson.

The news was sending New Zealand Dollar surged to $ 0.6985, the highest since mid-2018, as it reinforced expectations the RBNZ will refuse to move towards negative interest rates next year.

Robertson said he was not proposing any changes to the central bank’s mandate or independence.

New Zealand home prices have exceeded all expectations by gaining nearly 90% over the last decade, with a 20% -30% increase in the last three years alone.

Historically, low interest rates and fiscal stimulus from the government this year to support the pandemic-hit economy have pushed the market further, leading many economists to mistakenly predict a slowdown.

Westpac Bank said last week that it now expects house price inflation to peak at 15% in June 2021, and prices to rise 13% over 2021 as a whole.

Robertson’s letter to the central bank comes amid increasing pressure for the government to contain a booming property market that has driven out many first-home buyers and fueled the risk of a bubble.

In a letter to RBNZ Governor Orr released to the media, Robertson said instability in house prices was dangerous for the government’s goal of reducing inequality and poverty.

“With an extended period of low interest rates, and some time before housing supply can catch up with demand, now is the time to consider how the Reserve Bank can contribute to a stable housing market,” Robertson said in a statement.

“Doing this work does not mean that the Reserve Bank should take responsibility for house prices, but only that it should pay attention to something that is influenced by monetary policy.”


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Asia paves the way for travel recovery: Agoda by Booking Holdings | Instant News

SINGAPORE – Travel is recovering faster in Asia than in the West – but it’s the domestic market that’s driving the recovery, an online travel agency told CNBC this week. “Asia is generally leading the way,” said John Brown, CEO of Agoda. , a subsidiary of the American online travel company Booking Holdings. “We’ve seen markets like Taiwan, certainly places like Thailand, where they really have the best control over Covid – these are the markets where we see domestic bookings doing the best.” The best pockets of recovery are domestic travel to Taiwan, Thailand and increasingly Vietnam, he said. Thailand and Vietnam have also been successful in containing the pandemic, with 3,920 and 1,307 confirmed cases respectively, according to data compiled by Johns Hopkins University. “These domestic markets are even better off than they were last year. [travel] This photo taken on October 20, 2020 shows tourists posing for photos next to anti-landing spikes placed along the coast of Taiwan’s Kinmen Islands, just 2 miles from mainland China Sam Yeh | AFP | Getty Images The travel industry has been hammered by the coronavirus pandemic which has seen countries close their borders to tourists earlier this year. Some markets have since reopened, but demand has been weak. been a domestic story, we are still waiting for the international [demand] In Europe and the United States, there are pockets where domestic travel also looks “relatively good” despite the surge in coronavirus cases, Brown noted. “But really, all eyes in the world are on Asia to see how we are handling this both domestically, and again with regard to the travel bubble between Singapore and Hong Kong, and the many others which we hope will open soon, “he said. The two cities were due to start leisure travel without quarantine on Sunday, but authorities announced on Saturday that the bubble arrangement Singapore-Hong Kong trip would be postponed for two weeks after Hong Kong reported an increase in the number of cases. Brown said he believed it would still be online “soon enough” and other markets would follow.

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