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China’s reported gross domestic product (GDP) showed a modest deceleration to 6.2% year-on-year (yoy) in the second quarter of 2019 (2Q/19) from 6.4% in the previous two quarters.

In the prolonged global quantitative easing era, should the fiscal tap be turned up ? With monetary policy having basically run to its limit, fiscal stimulus through modest budget deficit can be sustained for a longer period.

Financial markets enjoyed a relieved rally yesterday as the G20 outcomes was in line with expectations of a trade war truce.

Spotlight - Despite ‘as expected’ reports following G-20, two important surprises emerged from the weekend.

There are several ongoing events which could influence the US–China trade talks.

With the increased trade war risk from additional tariffs on Chinese exports to the US, investors have been focusing on policy easing to assess both countries’ economic and earnings outlook.

A market backdrop favourable to convertible bonds

With growing uncertainty around the Sino-US trade war and that relationship at a low ebb, investors are increasingly focusing on policy response to assess market outlook.

President Donald Trump has raised pressure on China to strike a trade deal by threatening a possible increase of tariff to 25% (from 10%) on $200bn worth of Chinese exports to US by Friday (May 10). He may also consider extending a new 25% duty on another $325bn worth of Chinese products.

Spotlight - Signs of a reduction in current worries about recession or in the downside risks to today’s modest earnings expectations are needed as a catalyst to support the next sustainable leg of equity market returns.

Diversified & High quality growth

Spotlight - Having spent the first two months of 2019 travelling to see clients across Asia, the Middle East and Europe concern among clients remains and is surprisingly consistent across regions of the world despite one of the strongest rallies in global equities to start a year in the past 30 years. We address the three most asked questions.