World Issues 2

China targeting on 8% GDP next year

China is targeting 8% GDP for the next year amid fragile economy recovery. The double digit target may not be good at the moment due to the rising risk of bubbles in stock, real estate and commodity price. But economist at Moody’s Economy.com in Sydney, Alaister Chan, said that the official target of 8% may overshoot in the next year. Furthermore, he said, it can be easily for China to achieve it as compared to this year. In addition, China’s bank will probably extend 9.8 trillian yuan ($1.4 trillion) of new loan this year from the total of the first 11 months that was 9.21 trillion yuan (Bloomberg.com).

U.S.-Brokered Climate Deal May Give Obama More Sway in Senate

The reason behind the “indecision” of US President Barrack Obama in the climate talks recently is probably because he wants to win over members of the senate who don’t want to impose similar restrictions i.e through emission cuts on American companies. I found that US’s stand on climate issue which was apparently opposed to earlier offer of China and India on emission curb has a political interest. Senators tried to oppose with UN rules that might hurt U.S businesses’ ability to compete in the global market. According to Senator Benjamin Cardin, a Maryland Democrat, the agreement (Copenhagen Accord) would help US to politically deal with American manufacturers that are at a disadvantages from UN policies on carbon curbs. The plan calls for another year of talks for a treaty to tackle global warming by capping emissions and expanding the $120 billion carbon market. A U.S. law allowing carbon trading would move the market’s “center of gravity” from London to New York and Chicago (Bloomberg.com).

Abu Mardhiyyah

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World Issues 1

Protest in Taiwan

Thousands of Taiwanese protested to China’s envoy meeting with Taiwan negotiator for trade talks in Taiwan recently. Some of the people in the Island are still thinking that the bilateral negotiation on economy between China and Taiwan may pave the way to unification. The demonstration that has been sponsored by Democratic Progressive Party was organized purposively to pass the message to the President of Taiwan, Ma Ying-jeou, that his signature on policy of tightening economic links with Beijing is threatening the well-being of Taiwan's people and paving the way for a Chinese takeover.

US Economy

US household expenditures are recorded to improve slightly by 0.7 per cent and incomes climbed up to 0.5 per cent. This is factored by the government’s easy monetary policy whereby the interest rate is pushed down to spur lending and also combined with discounts by merchants like Best Buy .co that may encourage the consumers to keep buying in coming months. Moreover, consumers’ confidences also take a major concern of this positive growth. The slowdown in the pace of job cuts and higher stock price are boosting consumer sentiment. All of these signs giving to retailers and real-estate agents reasons to anticipate business will improve in 2010.

Abu Mardhiyyah

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