Connect with us

Investment

Microsoft announces biggest investment in Taiwan – Anadolu Agency

Published

 on


ANKARA

The US-based Microsoft Corporation has announced its biggest investment in Taiwan amid faltering US-China trade ties.

In a news conference on Monday, Microsoft Taiwan CEO Ken Sun said the company will build a data center in Taiwan, creating over 30,000 jobs with an investment of over $10 billion until 2024, daily Taipei Times reported on Tuesday.

The investment in four digital projects also include research and development of artificial intelligence hardware. It has been the first time in last 31 years that Microsoft announced such a big investment in the island nation.

Taiwan President Tsai Ing-wen said in a tweet: “I am proud to be part of reimagining Taiwan with @Microsoft & welcome their investment. Our collaboration is yet another step forward for the Taiwan-US partnership, as we reimagine supply chains & create business opportunities for a better tomorrow.”

The huge investments come amid weakening US-China relations which have hit the bottom rock. Washington has increased its relations with Taiwan which China claims a “breakaway province”.

Beijing has warned against hobnobbing with Taipei arguing it violates “One China Policy”.

Microsoft said it will also train more than 200,000 “digital talents” to serve its ventures.

“We have been increasing our investment in Taiwan every year for the last five years,” Microsoft Taiwan Corporation General Manager Ken Sun said. “And now we are making the biggest investment in Microsoft’s 30-plus-year history in Taiwan.”

Tsai said Microsoft’s investments came at a “critical time”.

“As the world’s supply chains are rapidly reforming in the wake of COVID-19, this is the most powerful moment for us to take our trade relations with the US to a new level,” Tsai said.



Anadolu Agency website contains only a portion of the news stories offered to subscribers in the AA News Broadcasting System (HAS), and in summarized form. Please contact us for subscription options.

Let’s block ads! (Why?)



Source link

Continue Reading

Investment

Investment firms cautious on reopening plans, notification procedures – Investment Executive

Published

 on


Financial sector could be a Covid-19 long hauler: Fitch

Banks in particular face future earnings, ratings challenges due to pandemic

Crisis coming in seniors’ care if governments don’t shift investments: report

Current spending levels of 1.3% of GDP could soar to 4.2% by 2041, says report

  • By: IE Staff
  • November 27, 2020
    November 27, 2020
  • 11:44

Global house prices rose in the face of Covid-19: BIS

Canada among the housing market leaders, both short and long term

Markets move past election uncertainty

With Biden’s transition underway, investors have shifted their focus to Covid vaccines and economic recovery

Let’s block ads! (Why?)



Source link

Continue Reading

Investment

Takeaways from our 2021 investment outlook: Legacy of the lockdowns – Investors' Corner BNP Paribas

Published

 on


Here we summarise the big picture for investors at the end of 2020. This constitutes the starting point for our 2021 investment outlook.

  • Since the 2008 global financial crisis, the global economy has been mired in anaemic growth and weak demand, tempered by consistently rising asset prices.
  • In 2020 the global economy faced a crisis of unprecedented magnitude (see Exhibit 1 below) after the pandemic lockdowns. After a contraction of 4.4% in 2020 the IMF forecasts global growth of 5.4% in 2021. Overall, this would leave 2021 GDP some 6.5% lower than in the pre-COVID-19 projections of January 2020. The adverse impact on low-income households is particularly acute, imperilling the significant progress made in reducing extreme poverty over the last 30 years. Countering inequality is a key challenge to be met in 2021 and beyond.

Exhibit 1: Largest decline since WWII – graph shows change in world gross domestic product (inflation-adjusted, in %)

Source: BNP Paribas Asset Management, as of 26/11/2020

  • Under the best-case scenario, one or more vaccines for COVID-19 become widely available by the second half of 2021. Otherwise, the disease remains a longer-term threat requiring us to ‘live with’ the virus – repeated lockdowns will not be a sustainable long-term strategy.
  • In 2020, advanced economies loosened the monetary and fiscal reins most spectacularly. Debt-to-GDP ratios soared, rising for many countries by more than they did in the years after the Global Financial Crisis (GFC). Major central banks have largely financed the increase in budget deficits, monetising an expanding national debt, much as Japan has done.
  • One way to understand the weakness in aggregate economic demand is to study real interest rates (the ‘price’ of money in the economy). In 2006, the real yield of the 10-year inflation-protected US Treasury bond was between 2% and 3%. Since 2010, its yield has mostly been below 1%, including a spell in negative territory both in 2012 and again in 2020. Negative real yields are now common to the G3 economies (see Exhibit 2 below) and beyond. In 60% of the global economy — including 97% of advanced economies — central banks have pushed policy interest rates to below 1%. In one-fifth of the world, policy rates are negative.

Exhibit 2: Real yields are now negative for G3 sovereign debt – graph shows changes in real yields for US, Japanese and eurozone government debt between 1997 and 16/11/2020.

Source: BNP Paribas Asset Management, as of 26/11/2020

  • In 2020, these meagre interest rates, along with cheap, low-risk liquidity from central banks, led asset prices higher. Risk premia for risky assets shrank. Companies whose revenues have plummeted — cruise lines, airlines, cinemas — were able to borrow money in 2020 to survive. Investors had few higher-yield options. Will central banks continue to supply such liquidity in 2021?
  • And how is all this debt to be paid for? The appropriate historical parallel is perhaps the post-World War II period, when central banks capped bond yields at levels well below the trend GDP growth rate to gradually reduce the national debt as a proportion of GDP.
  • Alternatively, instead of financial repression and inflation (as post WW2), the extraordinarily low real interest rates we have seen over the past decade could help achieve fiscal sustainability. It would, however, be imprudent to count on it. No policymaker should expect real interest rates to remain persistently below the growth rate of real GDP. Indeed, forecast imbalances in planned global savings and investment could drive real interest rates higher (ageing societies save a lot, but old societies do not).
  • Another risk is that improved real trend growth does not come to the rescue. Lower global growth after the pandemic accompanied by inadequate fiscal stimulus would leave marginal sections of the economy vulnerable to collapse. Such an outcome would test the paradigm of modest growth, low inflation and supportive central bank policy that has supported asset prices since 2008.

Today we face three interconnected crises – health, economic and climate. The instability provoked by the pandemic presents a window of opportunity to pivot in a new direction. Long-term environmental viability, equality and inclusive growth are essential pre-conditions to a sustainable economy. By taking a holistic, systemic, long-term view, we are less likely to be surprised by crises and better able to manage them.

For in-depth insights into what’s next for the global economy and markets, read our 2021 investment outlook, ‘Legacy of the lockdowns’


Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. The views expressed in this podcast do not in any way constitute investment advice.

The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns.

Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).

Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.

Let’s block ads! (Why?)



Source link
Continue Reading

Investment

Fossil Free Lakehead pleased with university investment decision – CBC.ca

Published

 on


A decision by the Board of Governors at Lakehead University to divest itself of fossil fuel investments is being hailed as a victory for one student group on its Thunder Bay, Ont., campus.

On Thursday, the board committed to not holding any investments involving fossil fuel extraction by 2023. 

“Our decision to divest from fossil fuel companies reflects Lakehead’s goal of becoming a leader in sustainability as reflected throughout our current Strategic Plan and Sustainability Action Plan,” said Board of Governors Chair Angela Maltese in a statement.  

Just over two per cent of the university’s investments are in fossil fuel organizations.

About 40 members of Fossil Free Lakehead have been working to convince the school since 2013, that it should no longer hold the investments.

Lakehead is the sixth university in the country, the group said, to divest itself of fossil fuel revenues.

“I think many people believe that burning and extracting is the only way forward, because that’s what we’re used to,” said Shaidya Aidid, a member of Fossil Free Lakehead.

“I think that progress doesn’t happen because we want to stay in our comfort zone,” she said, noting she got involved in the group, believing that Lakehead needed to lead the way when it came to promoting alternative fuels.

“A lot of the groups of students and members who are involved with our movement all believe in that message, that fossil fuels will not be fuelling our future.”

Let’s block ads! (Why?)



Source link

Continue Reading

Trending