Goldman Sachs on China’s economy reform

According to Nikkei Asian Review, Goldman Sachs has an important part to play as they support the reform of Chinese Economy. CEO and Chairman Lloyd Blankfein revealed this in an interview, which also discussed several topics such as Bitcoin, Toshiba, and the prospect of retirement.

At the moment, Wall Street bank has been up to some China-related business. Announced last fall, this includes their partnership with state wealth fund China Investment Corp as well. Blankfein emphasized the value of the country as a market for Goldman Sachs.

“My predecessor, Hank Paulson, went there a lot. I go there a lot. It is the second-largest economy in the world, and certainly on the way to being the largest,” he said.

“You are going to need rules and regulations that allow companies to go bankrupt in a sensible way so that bad assets can be recycled and redeployed in the economy. You are going to have to reorganize companies to make them more efficient,” he added.

“Those are all ways in which we normally help an economy, and so we think it is very important for us to be there, and I think it is very important for China to have companies like us there helping the economy grow,” he further shared.

Moreover, Blankfein believes China needs his company if they want to continue pursuing the ranks of advanced economies. This goal requires the country to edify their financial and economic reform. He also addressed Goldman Sach’s transaction with Japan and how their operation there is doing for the last four decades.

“Commitment is especially important in Japan, where relationships really matter. It takes a long time, and we have been here a long time. Sometimes it’s frustrating: You want quick results, but Japan gives solid and durable results, but not quick results,” he said.

Midterms: The Real meaning of Economy

According to National Public Radio, despite a wave of controversies, President Trump’s popularity seems to be rising ever so slightly, according to a couple of recent polls. The bump may be linked to the fact that more Americans seem to be crediting Trump for the nation’s healthy economy. And that has raised one of the central questions of the midterm election season: whether the economy will help keep Republicans in control.

Voters like Allen Cowan, a 50-year-old from West Virginia, might offer some clues. Cowan considers himself a socially liberal, fiscally conservative voter, the type of voter who reluctantly chose Donald Trump in 2016.

“I held my nose at the voting booth,” Cowan said. But, these days he’s satisfied with at least one aspect of the Trump era. “Financially speaking, I cannot complain,” he said. “My retirement I have through my employer has shown a remarkable increase.” Still, neither Cowan’s personal finances nor the economic health of the country has changed his overall opinion of the president, find the liquor store.

“I can look at President Trump and be like ‘okay, his policies in regards to the economy and stuff are good for the nation.’ But I’m still going to think President Trump the whole kit and caboodle is a bitter pill to swallow,” he said.,Granted, research by Mary Stegmaier, a professor at the University of Missouri, has shown there’s generally a lag in how the public perceives who’s responsible for the economy. “The first year of a presidency is quite different than later years … because when a president is inaugurated he has inherited the economy from his predecessor,” she said. “It takes a while for the public to start holding the new president responsible for the economic conditions.”

And recent polls suggest the political winds may be shifting, as an increasing number of Americans begin crediting Trump over former President Obama for the current economic conditions.

What could hurt the US Economy

According to CNBC survey, 63 percent say Trump trade policies negative for growth. The Fed will likely upgrade its view of the economy when it meets this week, but it’s unlikely to publicly discuss one of the bigger risks for the economy — potential trade wars.

The Trump administration is reportedly prepared to impose $60 billion in annual tariffs against China on Friday, punishing it for intellectual property infringement, according to The Washington Post. The president has already signed an order imposing tariffs on steel and aluminum imports from most countries.

At the Fed’s two-day meeting, which begins Tuesday, policymakers are expected to announce a quarter-point interest rate hike and release new economic and interest rate forecasts Wednesday afternoon.

But economists say the central bank will probably not even mention the trade issues that are worrying markets and could potentially become a bigger issue for the economy if President Donald Trump continues to take actions against trading partners, the liquor store near me.

This week’s Fed meeting is also the first to be led by Jerome Powell, and he will hold a press briefing following it. But Fed watchers expect him to stay away from the topic of tariffs, even if asked.

“It’s a land mine, and we don’t know all the details yet. This is one of those things, especially for Powell. He has made it clear the colors within the lines,” said Grant Thornton chief economist Diane Swonk. She said Powell will stick to the Fed’s dual mandate on inflation and employment and not veer into fiscal policy.

“It will be in the minutes. We’ll find out in three weeks what they think. He will be asked about it, and if I were him I would say we don’t know the full extent,” she said.