Money for Nothing
Now that China's slowing right down, more of the world's recovery is pinned on the US roaring back to life. On Money For Nothing, Bart van Ark, chief economist of the Conference Board, will tell us how the US and the global economy are looking in the second half of the year. Our regular contributor Daniel Hicks of AFP's Sport Direct will tackle the thorny issue of golf sponsorship in Hong Kong, or rather, the lack of it. And in our industry segment, Gene Burdette of Nasdaq-listed Solta Medical is in the studio for a chat about the fast-growing , but often controversial , beauty treatments industry. We also have Ben Collett of Sunrise Brokers joining our markets wrap. (8am-9am, firstname.lastname@example.org)
8.03 am - News highlights of the day
* The US and China have agreed to restart talks on an investment treaty. China has apparently dropped its previous effort to protect certain sectors of its economy
* China says GlaxoSmithKline executives in China have confessed to bribery and tax violations
* Microsoft CEO Steve Ballmer is changing the structure of the software giant to better adapt to the growth in non-PC devices
Ben Collett of Sunrise Brokers says Ben Bernanke's dovish comments on Wednesday caught many investors by surprise. "His speech sent the US dollar weaker, which is very positive for Hong Kong. There is also support for the view that there will be some monetary accommodation in China. So there has to be some short-covering in Hong Kong. But I wouldn't get too excited," he says. He feels that the Japanese market may have room to rise further, saying there is a lot of global support for the country's structural reforms, while the Abe government is expected to win control of the upper house election on July 21.
8.20 am - Conference Board predictions
Bart van Ark, chief economist at The Conference Board, says he expects the Fed to start tapering in the second half of the year. But the real impact on the economy is limited by the fact that it will be a slowdown, rather than a stop, in bond-buying. "The patient has been sick for quite a while so it's time to move from life support to rehab." Emerging markets are worried, however, that they will have to cope with a sudden exit of capital from their markets and they would blame the Fed for it. He says the recovery in Europe continues to be slow and a lot depends on whether Germany keeps growing.
8.45 am - Golf in Hong Kong
The controversy over the land occupied by the Hong Kong Golf Club has prompted a broader discussion about the future of golf in the city. Daniel Hicks of AFP Sport Direct says Hong Kong will only start producing high-level sports people if it has the facilities and also, major international tournaments. He points out that the Hong Kong Open, the oldest golf tournament in the region, is losing relevance around the world because it has lost its title sponsor, UBS.
8.45 am - Medical aesthetics devices
Gene Burdette of Solta Medical says Asia is now the biggest market for its products, overtaking the US. His company has just acquired a rival producer of beauty treatment devices and he expects more consolidation to occur in a fragmented industry.