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China’s economic influence more welcome in poorer countries, poll finds

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Thailand holds most positive views of China, followed by Nigeria, Kenya and Tunisia, Pew survey shows.

Taipei, Taiwan – China’s economic influence is felt everywhere around the world, but whether it is viewed in a positive or negative light depends greatly on each country’s economic development, a survey of 35 countries has found.

People living in high-income countries like the United States, Canada, Australia expressed broadly unfavourable views of China overall, with a median of 70 percent of people across 18 countries reporting negative feelings, according to polling released this week by the Pew Research Center.

Those perceptions flipped in middle-income countries like Thailand, Kenya, and Bangladesh, with a median of 56 percent of respondents across 17 countries reporting favourable views, according to the Pew figures published on Tuesday.

Within the 35 countries surveyed, individual views varied widely, with the lowest approval rating reported by Sweden at 11 percent, followed by Japan (12 percent), Australia (14 percent) and the US (16 percent).

The most positive views were reported by Thailand at 80 percent, followed by Nigeria (75 percent), Kenya (73 percent), Tunisia (68 percent), and Singapore (67 percent).

A similar division was seen regarding perceptions of whether China had a positive or negative influence on the economy specifically.

A median of 57 percent of people in high-income countries viewed China’s economic influence negatively, in contrast to the median of 47 percent of people in middle-income countries who viewed its influence positively.

In the US, 76 percent of respondents reported negative views towards China’s economic influence, followed by Germany (69 percent), France (68 percent), and Canada (68 percent), with similarly negative views held across Europe, Japan, South Korea and India.

Singapore and Malaysia viewed China’s economic influence in the most positive light, with 67 percent of respondents reporting favourable views, followed by Nigeria (64 percent) and Thailand (63 percent).

Pew attributed some of the views to the effect of China’s massive Belt and Road Initiative, which has invested more than $3 trillion in other countries over the past decade.

Views of Chinese President Xi Jinping were negative on the whole, with a median of 24 percent of respondents expressing confidence in the leader and 62 percent reporting little to no confidence.

The most unfavourable views were held by Japan (87 percent), Australia (85 percent), and Sweden (82 percent).

Singapore and Thailand had the most favourable views of Xi, with 63 percent of respondents saying they had a fair or great deal of confidence in the Chinese leader, followed by Malaysia (55 percent) and Bangladesh (51 percent).

Nine middle-income countries surveyed separately about the effect of Chinese companies on their economies reported overall positive views.

A median of 72 percent agreed that Chinese companies are good for their country’s economy, with the most positive views reported in Thailand (81 percent), Kenya (80 percent), and Bangladesh (79 percent). The trio of countries also reported overall positive views about the environmental impact of Chinese companies and how they treat local workers.

India had the most negative views, with only 49 percent of respondents viewing Chinese companies as having a positive effect on their economy, followed by Ghana (55 percent) and South Africa (57 percent).

Within the Asia Pacific region, nine out of 10 countries surveyed expressed a high level of concern about China’s territorial disputes in the region.

The highest level of concern was expressed in the Philippines, which regularly clashes with Beijing over its claims in the South China Sea, with 91 percent of respondents saying they were at least somewhat worried.

The Southeast Asian nation was followed by South Korea (87 percent) and Japan (86 percent), which have similar disputes in the East China Sea, Australia (82 percent), and India (69 percent).

 

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Energy stocks help lift S&P/TSX composite, U.S. stock markets also up

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TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.

The S&P/TSX composite index was up 34.91 points at 23,736.98.

In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.

The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.

The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.

The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.

This report by The Canadian Press was first published Sept. 17, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Canada’s inflation rate hits 2% target, reaches lowest level in more than three years

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OTTAWA – Canada’s inflation rate fell to two per cent last month, finally hitting the Bank of Canada’s target after a tumultuous battle with skyrocketing price growth.

The annual inflation rate fell from 2.5 per cent in July to reach the lowest level since February 2021.

Statistics Canada’s consumer price index report on Tuesday attributed the slowdown in part to lower gasoline prices.

Clothing and footwear prices also decreased on a month-over-month basis, marking the first decline in the month of August since 1971 as retailers offered larger discounts to entice shoppers amid slowing demand.

The Bank of Canada’s preferred core measures of inflation, which strip out volatility in prices, also edged down in August.

The marked slowdown in price growth last month was steeper than the 2.1 per cent annual increase forecasters were expecting ahead of Tuesday’s release and will likely spark speculation of a larger interest rate cut next month from the Bank of Canada.

“Inflation remains unthreatening and the Bank of Canada should now focus on trying to stimulate the economy and halting the upward climb in the unemployment rate,” wrote CIBC senior economist Andrew Grantham.

Benjamin Reitzes, managing director of Canadian rates and macro strategist at BMO, said Tuesday’s figures “tilt the scales” slightly in favour of more aggressive cuts, though he noted the Bank of Canada will have one more inflation reading before its October rate announcement.

“If we get another big downside surprise, calls for a 50 basis-point cut will only grow louder,” wrote Reitzes in a client note.

The central bank began rapidly hiking interest rates in March 2022 in response to runaway inflation, which peaked at a whopping 8.1 per cent that summer.

The central bank increased its key lending rate to five per cent and held it at that level until June 2024, when it delivered its first rate cut in four years.

A combination of recovered global supply chains and high interest rates have helped cool price growth in Canada and around the world.

Bank of Canada governor Tiff Macklem recently signalled that the central bank is ready to increase the size of its interest rate cuts, if inflation or the economy slow by more than expected.

Its key lending rate currently stands at 4.25 per cent.

CIBC is forecasting the central bank will cut its key rate by two percentage points between now and the middle of next year.

The U.S. Federal Reserve is also expected on Wednesday to deliver its first interest rate cut in four years.

This report by The Canadian Press was first published Sept. 17, 2024.

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Federal money and sales taxes help pump up New Brunswick budget surplus

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FREDERICTON – New Brunswick‘s finance minister says the province recorded a surplus of $500.8 million for the fiscal year that ended in March.

Ernie Steeves says the amount — more than 10 times higher than the province’s original $40.3-million budget projection for the 2023-24 fiscal year — was largely the result of a strong economy and population growth.

The report of a big surplus comes as the province prepares for an election campaign, which will officially start on Thursday and end with a vote on Oct. 21.

Steeves says growth of the surplus was fed by revenue from the Harmonized Sales Tax and federal money, especially for health-care funding.

Progressive Conservative Premier Blaine Higgs has promised to reduce the HST by two percentage points to 13 per cent if the party is elected to govern next month.

Meanwhile, the province’s net debt, according to the audited consolidated financial statements, has dropped from $12.3 billion in 2022-23 to $11.8 billion in the most recent fiscal year.

Liberal critic René Legacy says having a stronger balance sheet does not eliminate issues in health care, housing and education.

This report by The Canadian Press was first published Sept. 16, 2024.

The Canadian Press. All rights reserved.

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