a quick look inside the asian economy
TRANSCRIPT
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A quick look inside the Asian EconomyCédric De Kerpel
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Summary
1. Introduction2. China’s influence in the world3. Yen vs. dollar4. Manufacterers confidence5. Conclusion
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1. IntroductionEmerging market
China second biggest industry Japan India
Growth of GDP China 8,8 trillion dollars Japan 5 trillion dollars
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1. IntroductionLarge workforces but cheap labor
cost mass production (textiles,
automotive products, electronics)
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2. China’s influence in the world
Influence
◦Largest exporter, second biggest importer
◦Price setter
◦Owns a third of the world currency reserve
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2. China’s influence in the world
How to use influence?Trading power
Guard and develop global trading system
Global monetary system exchange rate management Lobby with big countries
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2. China’s influence in the world
Finance Create a financial system that aids
domestic and global development
Ressources Ensure that exporting countries benefit
from foreign investments
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3. Yen vs. DollarJapan earthquake crisisConcerns about impact on the
global economy Yen surges shares suffer losses
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3. Yen vs. DollarNew record high 76,52 Yen/USD
Yen/USD on march 17th
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3. Yen vs. DollarReasons Yen surge
◦Japanese investors Repatriate cash to cover disaster costs Sell foreign assets demand for Yen rises
◦Families stocking up supplies ATM crash
This hurts the Yen
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4. Manufacturers confidence
Pre – earthquake◦Manufacturers grew confident about
the economy and businessPost – earthquake
◦Manufacturers are grim about business
◦The outlook is not good◦Chance of recession?
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4. Manufacturers confidence
Stocks drop, Yen risesDamage of 300 billion USDBlackouts slump production
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4. Manufacturers confidence
Big companies◦Cut spending with 0,4%◦Less production
Governement will give temporary loans
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5. ConclusionAsia is becoming one of the
better economiesIndustry leaderBut the Japan crisis will hurt their
short-term growth and stability