From the latest official figures published recently, Singapore’s economic growth in 2Q19 was weaker than expected. Given the gloomy climate, some are now wondering if the Singapore government would call for an early election.
A day after the G20 meeting with China President Xi Jinping, US President Trump went on to meet his North Korean counterpart Kim Jong Un at the demilitarised zone in the Korean Peninsula. In the impromptu meeting with Kim, Trump made history when he became the first sitting US President to step into North Korea.
The US-China trade war is starting to bite in Singapore. Official figures showed that 1Q19 GDP has slowed significantly, with the retail sector still in contraction.
Just when the US intensifies its trade war against China, Trump announced that he would impose a five percent tariff on all Mexican goods on 10 June 2019. The move aimed to push the Mexican government to crackdown on illegal immigrants coming into the US.
On 10 May 2019, the US officially raised tariffs on US$200 billion worth of Chinese goods to 25 percent. Returning to his brinkmanship style of diplomacy, Trump once again threatened to expand the list to include all Chinese imports. At this moment, there is still US$325 billion worth of Chinese goods not being targeted. If tensions continue to escalate, tariffs could even be levied on American products manufactured in China, such as the Apple’s iPhone. So far, only pharmaceuticals and rare earth minerals are exempted.
Geopolitical risk has returned to take center stage.
My latest book “Chaos” has finally been published. Amongst the 50 odd books I have written, three books were dedicated to a detailed analysis of the stock market during different era.
The Shanghai Securities Exchange Composite (SSEC) index peaked out in January last year. However, at its highest last year, the SSEC was still significantly behind its 2007’s all-time high. Following January 2018, the SSEC trended downwards for the rest of the year, only bottoming out in the beginning of 2019.
On 9 March 2019, I returned to Singapore to speak at the Shares Investment Conference (SIC) 2019 held at the HDB Hub in Toa Payoh. As I always put up in hotels each time I return, it has been a while since I last explored our housing districts. This time round, I took the opportunity to walk around the neighbourhood of Toa Payoh after the SIC event.
US-China trade war has hit a stalemate and there are still major differences to be hammered out. US President Trump reiterated that he would either sign a “great” China trade deal or he would choose to walk away like how he did in the second nuclear summit with North Korean counterpart Kim Jong-un.