The rate of inflation in the US currently stands at 1.7%. But the US Federal Reserve thinks that President-elect Donald Trump’s promises of tax cuts, infrastructure spending and deregulation could stoke higher inflation, which could lead to more aggressive rises in interest rates. Who said inflation was dead?
US carmaker General Motors sold 3.87 million cars in China last year. That was 7.1% more than the previous year. The better-than-expected performance was thanks to China’s move to cut taxes on cars with smaller engines. Looks like Chinese consumers are in the driving seat.
Shares in Global Logistics Properties (SGX: MC0) surged around 7% on news that it has put itself up for sale. The company has reportedly sent out information letters to targeted bidders at the end of December. Trading in the warehouse operator was halted following a trading enquiry from Singapore Exchange. This has got to be one of the market’s worst-kept secret.
Chinese internet company Alibaba has been told that it can raise its stake in Singapore Post (SGX: S08). Singapore Exchange has given permission in-principle for around 107.6 million to be listed on the market. The deal, which is expected to be completed by the end of February, will increase Alibaba’s stake from 10.2% to 14.4%.
And finally, desperate times require desperate measures. In China’s case, it has gone to extraordinary lengths to stem the outflow of yuan. On Wednesday it raised the overnight deposit rate to as high as 100%. It seems that capital controls aren’t working, so raising overnight rates is the next best thing.
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