August 21, 2023 | Rising worries in China = more savings, despite the low mortgage rates; and a historic drop in mortgages.
Why It Matters: The residential property sector is uniquely vital to China’s economy, and boosting consumer confidence to spend is pivotal for its recovery.
Source: Gavekal, thedailyshot
...August 21, 2023 | U.S. businesses beat expectations, posting strong profits, even with higher interest rates and lower consumer confidence.
Why It Matters: Despite solid earnings, stocks aren’t reflecting it. Global growth fears are overshadowing corporate performance.
Source: axios, dailychartbook
...August 21, 2023 | Long-term U.S. interest rates soar to their highest levels since 2008.
Why It Matters: Rising rates can shift the landscape – as bonds become more appealing due to higher yields, money may flow out of equities, potentially shaking up the stock market.
Source: Source Financial Advisors
...August 21, 2023 | Another China property developer teeters, fueling default fears. In response, China cuts interest rates, sending China’s currency to their lowest since 2008.
Why It Matters: China’s woes are a growing global concern. If China takes a dive, the world may feel the splash.
Source: thedailyshot
...August 14, 2023 | Chinese inflation dips negative, and with sluggish producer prices, could be hinting it stays that way.
Why It Matters: China is the heartbeat of global manufacturing, and a decline in prices will have ripple effects for prices globally.
...August 14, 2023 | Curious why higher interest rates aren’t impacting the economy quicker? One word: Cash.
Why It Matters: Post-Covid U.S. businesses have been hoarding more cash than ever.
This cash cushion benefits from higher rates, counterbalancing rising financing costs.
Source: Gavekal
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