YOUR GEOPOLTIX BOTTOM LINE

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GEOPOLITICAL RISK+GLOBAL MARKETS

APAC MARKETS IMPACT + OPPORTUNITY

China’s maritime expansion reflects a curious mix of ambition and paranoia Chinese strategists urge Westerners to understand that their country’s rise as a naval power is guided in part by deep insecurity -The Economist

Why This Narrow Strait Next to Iran Is So Critical to the World’s Oil Supply -NYT

China is not an enemy -The Washington Post

Statesmanship and creativity are needed as Washington and Beijing renegotiate a relationship that is too big to fail. -AFSA

Nailed It – Navarro Discusses U.S-China Trade Re-engagement -The Last Refuge

Mass protest draws tens of thousands to streets of Kowloon in protest against Hong Kong extradition bill -SCMP

·       Protesters march through shopping district of Tsim Sha Tsui to cross-border high-speed rail terminus in hope of explaining cause to mainland Chinese visitors

·       Organisers say 230,000 took part – far more than expected – while police put figure at 56,000

 Hong Kong and Taiwan Are Bonding Over China Hong Kong and Taiwan long had a relationship built around trade and tourism. But as China clamps down in Hong Kong, ties between the pair are strengthening. -The Atlantic

GLOBAL BUSINESS

China Appeal Fading for Japanese Companies A Teikoku Databank survey found that there were 13,685 Japanese companies operating in China as of May 2019, a decrease of 249 compared to the previous survey conducted in 2016. Doing business in China has come to appear less attractive, with rising labor costs in the country over recent years among the declining benefits. Another factor is concern about the future impact of intensifying US-China trade friction. -Nippon.com

Walmart China plans $1.1bn investment in logistics Program includes building or updating more than 10 distribution centers over the next 10 to 20 year -Asia Times

Japanese firms cautious of fallout from deteriorating ties between Tokyo and Seoul A number of firms said they are anxiously watching developments, noting it remains unclear if the newly-introduced regulations will actually hinder trade between the two nations. Under the new regulations, at the longest, it could possibly take 90 days for Japanese exporters to get official approval on certain key items bound for South Korea. -The Japan Times

Samsung chief visits Japan to seek export curb workarounds Electronics maker urges such steps as supplying South Korea from overseas plants -Nikkei

If Masayoshi Son Won't Invest in Japan, Why Should You? His $100 billion Vision Fund is noticeably absent on its home turf. That speaks volumes about the health of the country’s startup scene. -Bloomberg

Taiwan to cut tariffs on sake and Japan farm and fishery products as it looks to join TPP -The Japan Times

Myanmar economic zone reimagined as export hub to India Japan hopes reworked Dawei will mean more leverage over Chinese influence -Nikkei

Is Beijing hitting out at offshoring in Cambodia? -Asia Times

Cambodia and Vietnam in the US-China Trade War: Not All Good News Both countries face opportunities, but investors cannot overlook the lingering risk -The Diplomat

GLOBAL MACRO

Time to end BOJ's grand experiment? Central banks are back on the center stage of the global economic policy debate. The U.S. Federal Reserve and the European Central Bank now appear ready to ease monetary policy — in a turnaround from just some months ago when people were looking for “exit” and additional rate hikes. -The Japan Times

EM Carry Trades With a 6% Yield Are Getting Harder to Resist -Bloomberg

Thai baht races ahead of Prayuth's slow progress The strong currency is hurting Thailand's competitiveness and threatens further damage -Nikkei Asian Review

Erosion of Hong Kong’s institutional autonomy will hurt advantage over mainland China cities, high credit rating: Moody’s -SCMP

·       Ratings agency affirms city’s long-term issuer rating of ‘Aa2’

·       City’s status as an independent entity could be ‘altered suddenly and much earlier than 2047’ by some of its international partners, the agency says