China | Evergrande’s restructuring is key to containing damage
The Evergrande saga has shone a spotlight on the Chinese real estate sector. News that the company may miss loan repayments and have to restructure its debt has sent shockwaves through global financial markets, with the Hang Seng slumped to a level not seen since October last year.
Download this report to find out:
- Will Evergrande risk turn systemic? How will it affect the financial market and the broader economy?
- Will the Chinese government bail out Evergrande?
- Will China further tighten its real estate policies?
Terms of trade will lift income but challenge Australian households
Australia's terms of trade (the ratio of export prices to import prices) increased sharply through the pandemic due to a combination of strong demand and disrupted supply in markets for Australia's major commodity exports. We had anticipated a correction in the terms of trade over 2022, but the Russian invasion of Ukraine and associated volatility in commodities markets has seen the terms of trade spike again.Find Out More
Eurozone: ECB minutes indicate that July rate hike is a near-certainty
The minutes from the April ECB meeting confirm the hawkish tilt initiated a few months ago continues to gain momentum. With a majority of the council increasingly concerned about the inflation outlook, this makes an interest rate hike already in July almost certain. This should not come as a surprise, however, as recent developments render hawks' case arguably easier to make.Find Out More