Burdened by over five months of civil unrest, Hong Kong has fallen into a recession, the city's financial secretary said Sunday.
"The economy has entered a technical recession, and the negative growth rate has significantly expanded," Secretary Paul Chan wrote in a blog post. "The blow to our economy is comprehensive."
Chan added that official quarterly GDP figures would be released Thursday, but that preliminary analysis shows consecutive economic contractions. It will be "extremely difficult," he wrote, for Hong Kong to reach its previously forecasted growth rate.
The bleak report coincided with chaotic demonstrations over the weekend that saw shops set ablaze and petrol bombs thrown at police, who responded heavily with water cannons and tear gas. In a statement Monday, police said that protesters overstepped the "bottom line of any civilized society." Unrest in Hong Kong, which first broke in June in opposition to a proposed extradition bill, has escalated significantly in recent months as residents continue to protest China's growing influence over the city and call for more democratic rights.
Chan on Sunday called on demonstrators to keep order and allow industry and commerce to operate freely. "Our society and the economy need to take a breather and need to get back on the road," he wrote.
<i>Police and protesters in Hong Kong on Sunday. Photo Credit: JEROME FAVRE/EPA-EFE/Shutterstock</i>
As a Chinese special administrative region since 1997, Hong Kong has enjoyed relative autonomy from Beijing in recent decades and has grown into one of the world's most significant financial and commercial hubs. In 2018, Hong Kong was home to the highest number of ultrawealthy ($30 million or more net worth) residents of any city in the world, according to Wealth-X's annual report. New York surpassed Hong Kong just slightly in 2019.
Earlier this month, Hong Kong's richest resident, Li Ka-shing, donated 1 billion Hong Kong dollars ($128 million) to support local business affected by the city's "unprecedented challenges."
"I hope that HK$1 billion donation will spark more support for the embattled [Small and Medium Enterprises]," Li said in a statement. "All suggestions are welcome and let's work together during these difficult times."
The Hong Kong government has also implemented a series of measures to help alleviate financial pains. Secretary Chan announced earlier this month a 19 billion Hong Kong dollar ($2.4 billion) relief package, which included significant rent reductions.
In announcing the recession Sunday, Chan cited plummeting tourism and retail sales figures. The number of visitors to Hong Kong fell by 37 percent in August and September, and by 50 percent in the first half of October. Tourism's decline constitutes an "emergency," Chan wrote. The decline of retail sales volume fell by 13.1 percent in July to 25.3 percent in August.
"We will continue to closely monitor the external economic situation and the political and economic situation in Hong Kong and try our best to further study the relief measures," Chan added in his Sunday blog post.
Investors, however, seem to be sticking with Hong Kong. The Hong Kong Stock Exchange's Hang Seng Index remains up more than 4 percent year-to-date.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
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