Hong Kong budget FY2026/27: Aiming at fiscal consolidation simultaneously with debt issuance for investment

Executive SummaryHong Kong has released its FY 2026/27 budget. Although headline economic growth and market activity have improved, leading to better fiscal position and higher government revenue, Hong Kong is not ready to shift away from fiscal consolidation, especially with the more proactive government-led investment supporting the stronger alignment with China’s national Five-Year Plan. It comes at a time when growth prospects remain constrained by numerous domestic and geopolitical challenges. As fiscal consolidation meets the growth bottleneck, budgetary resource reallocation can have im...

The 2026 Auto Equation: A Negative-Sum Game

The 2026 Auto equation blends a large dose of headwinds and a dash of regulatory relief, while volatility remains the X-factor that can make or break OEMs’ turnaround narratives. Affordability constraints dampen expected demand in the U.S. and China, leaving Europe as the sole region with modest growth potential and acting as the primary driver of sales. Non‑Chinese automakers’ exposure to the Chinese market has shifted from growth and profit opportunity to an essential learning experience. OEMs are likely to emphasize cash discipline and steady cash flow over ambitious bets, with a discipline...

Fed に対する見通しを変更する：堅調な景気と安定的なデータを受け、当面は現状維持が続く