China’s industrial output grew by 7% in January-February, marking the fastest growth in two years and surpassing expectations. Additionally, fixed-asset investment and retail sales also registered positive growth. This positive economic performance may impact the need for additional stimulus measures. Read more for details.
Toyota Motor agreed to give factory workers their biggest pay increase in 25 years. The pay increases are expected to help clear the way for the central bank to end its policy of negative interest rates as early as next week. The talks are closely watched this year as they are expected to facilitate higher wages and inflation throughout the country. Smaller firms may struggle to offer sizeable pay hikes due to less leverage to pass on costs to clients.
China is signaling that it may implement more targeted stimulus measures after unexpectedly cutting its bank reserve ratio. The move is aimed at boosting lending to small and medium-sized businesses.
