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| HKECIC Weekly Market News |
| 1 March 2021 |
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| Market Snapshots |
| Asia and Australasia |
Hong Kong: January exports jumped most since 1992
The Census and Statistics Department reported that the value of Hong Kong's total exports of goods increased by 44.0% yr/yr to HK$388.0 billion in January, after an increase of 11.7% in December 2020. A Government spokesman said that the value of merchandise exports registered a substantial increase in January 2021 against the low base of comparison a year earlier. Looking ahead, the Mainland China’s economy is expected to grow strongly, while import demand of the advanced markets should recover further if their epidemic situation gradually stabilises. These developments will bode well for Hong Kong's exports of goods in the near term. Yet, the evolving China-US relations and geopolitical tensions continue to warrant attention..
New Zealand: S&P upgrades sovereign credit ratings citing quick recovery
S&P Global Ratings has raised New Zealand’s foreign currency sovereign rating to AA+ from AA and its local currency sovereign rating to AAA from AA+. The outlook is stable. This marks the first developed nation with investment-grade debt to get an upgrade since the COVID-19 outbreak. In a statement, S&P said that New Zealand is recovering quicker than most advanced economies in the world because it has been able to contain the spread of COVID-19 better than most others, which provides better clarity over the extent of the pandemic's damage to the government's balance sheet. New Zealand’s economy has bounced back with a record growth of 14.0% qtr/qtr in Q3 2020 from a 12.2% decline in Q2. |
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| Europe |
Germany: Business sentiment rises to four-month high
Munich-based ifo Institute reported that its Business Climate Index rose to 92.4 in February from 90.3 in January. This also hits the most optimistic level since October last year. In February, assessments of the current business situation were more positive. Moreover, pessimism regarding the coming months was markedly reduced. ifo President Clemens Fuest said that the German economy is proving robust despite the lockdown, especially thanks to strength in industry. Regarding the pandemic, Germany’s Chancellor Angela Merkel reportedly proposed plans to ease the lockdown measures in place in three stages, combined with increased COVID-19 testing. The existing national lockdown remains in place until 7 March. |
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| North America |
US: Powell says economic recovery still has a long way to go
Last week, Federal Reserve Chairman Jerome Powell said in testimony to the Senate Banking Committee that economic recovery remains uneven and far from complete, and the path ahead is highly uncertain. The Fed Chair also viewed that the US economy is a long way from the employment and inflation goals, and it is likely to take some time for substantial further progress to be achieved. As with overall economic activity, the pace of improvement in the labor market has slowed, with millions of Americans remaining out of work. Nevertheless, Powell sees US economic growth could be in the range of 6% this year on the back of ongoing progress in COVID-19 vaccination. It is generally expected that the Fed will keep interest rates at record lows for the economy in near future. |
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US Department store chain Belk has filed for Chapter 11 bankruptcy protection for debt restructuring. Chief Financial Officer William Langley attributed the filing to the COVID-19 pandemic, which directly resulted in drastic declines in sales, revenue and liquidity. After the filing, Belk won court approval for the restructuring plan which allows to trim its debt by US$450 million and provide US$225 million in new financing from its private-equity owner Sycamore Partners. |
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Hong Kong Export Credit Insurance Corporation
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Copyright © 2021 Hong Kong Export Credit Insurance Corporation |
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Disclaimer
The information contained in the ‘Weekly Market News’ (WMN) is compiled by the Hong Kong Export Credit Insurance Corporation ("HKECIC") for general information only. Whilst HKECIC endeavours to ensure the accuracy of this general information, no statement, representation, warranty or guarantee, express or implied, is given as to its accuracy or appropriateness for use in any particular circumstances.
HKECIC is not responsible for any loss or damage whatsoever arising out of or in connection with any information including data or programmes on the WMN. HKECIC reserves the right to omit, suspend or edit all information compiled by HKECIC on the WMN at any time in its absolute discretion without giving any reason or prior notice. Users are responsible for making their own assessment of all information contained in this WMN and are advised to verify such information and obtain independent advice before acting upon it.
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