China Sends Strong Signals on Yuan Stability

China Sends Strong Signals on Yuan Stability

Beijing Sets Daily Reference Rate at 7.1140 Dollars Per Yuan

 

 

Topic
The details

Expectations

 

 

 

 

The details

China sent strong signals on the stability of the yuan on Wednesday,
after Moody’s Investors Service downgraded its outlook on the country’s credit rating to negative.

 

The People’s Bank of China set the daily reference rate for the managed currency at 7.1140 dollars per yuan,
which is more than 0.3% below the average estimate in a Bloomberg survey.

The decline is the largest in the daily reference rate since more than two weeks,
and suggests that Beijing is willing to use its monetary tools to keep the yuan stable.

“Setting the daily reference rate below expectations is a clear signal from the Chinese government that it is committed to the stability of the yuan,
” said Christopher Wong, a strategist at Oversea Chinese Banking Corp.

Wong added that “the market will not rule out intervention from policymakers if there are significant fluctuations in the yuan.”

The decision by China to set the daily reference rate below expectations came a day after Moody’s downgraded its outlook on China’s credit rating to negative. Moody’s cited concerns about rising Chinese government debt,
the slowdown in the property market, and the country’s increased use of fiscal stimulus.

 

 

 

 

 

Expectations

Some analysts believe that Moody’s downgrade could lead to increased pressure on the yuan.
However, the decision by China to set the daily reference rate below expectations suggests
that the Chinese government is willing to use its monetary tools to keep the yuan stable.

This move is likely to send a strong signal to markets that China is committed to the stability of the yuan,
and that it will not allow Moody’s downgrade to derail its efforts.

 

 

 

China Sends Strong Signals on Yuan Stability

 

Exploring the FTSE China A50 Index Changes

Exploring the FTSE China A50 Index Changes

The latest quarterly review of the FTSE China Index Series for June 2023 has brought significant updates that are poised to influence the dynamic landscape of the Chinese equities market.

 

Table of contents

Enhancing Market Dynamics
FTSE China A50 Index: Reflecting Market Reshuffles
FTSE China 50 Index: Navigating Market Momentum
Navigating the Indices
Conclusion

 

 

 

 

 

 

 

 

 

 

Enhancing Market Dynamics

This review has shed light on evolving market trends, as it has announced both additions and deletions to the FTSE China A50 Index and the FTSE China 50 Index. Let’s delve into the details and implications of these changes.

 

 

 

FTSE China A50 Index: Reflecting Market Reshuffles

In this recent review, the FTSE China A50 Index has undergone notable changes that reflect the shifting currents within the Chinese equities sphere.
The additions and deletions to the index components mark strategic adjustments aiming to align with evolving market sentiment and opportunities.

Two prominent additions have been introduced to the FTSE China A50 Index: the Beijing-Shanghai High-Speed Railway (A) (SC SH) and Gree Electric Appliances Inc. of Zhuhai (A) (SC SH).
These inclusions signify a keen focus on integrating companies that hold significant market influence and growth potential. The Beijing-Shanghai High-Speed Railway (A) has demonstrated its pivotal role in the transportation sector, while Gree Electric Appliances Inc. of Zhuhai (A) is renowned for its innovations in the consumer electronics domain.

The review has also paved the way for necessary exclusions from the FTSE China A50 Index. Notably, China Vanke (A) (SC SZ) and SAIC Motor (A) (SC SH) have been removed. These deletions are strategic moves to ensure the alignment of the index with the prevailing market dynamics and investment objectives.

 

 

FTSE China 50 Index: Navigating Market Momentum

In parallel, the FTSE China 50 Index has also witnessed significant adjustments during this quarterly review, further emphasizing the index’s responsiveness to the market’s ebb and flow.

The review’s results have introduced two noteworthy additions to the FTSE China 50 Index: CRRC (H) and PICC Property & Casualty (H).
These additions underline the index’s commitment to encompassing leading entities within the Chinese equities landscape. CRRC (H) is a prominent player in the rail transportation industry,
while PICC Property & Casualty (H) operates in the insurance sector,
reflecting the diversification of the index’s portfolio.

On the other hand, the review has led to the removal of Ganfeng Lithium (H) and Li Ning (P Chip) from the FTSE China 50 Index.
These exclusions are indicative of a dynamic approach to index composition, ensuring alignment with market shifts and investor preferences.

The FTSE China indices maintain their esteemed status as vital yardsticks for both domestic and international investors. These indices effectively capture the diverse facets of the Chinese equities market and reflect the pulse of market trends.

Significantly, a considerable portion of Assets under Management (AuM) in globally issued China Exchange Traded Funds (ETFs) are linked to these indices, attesting to their influence and credibility in the investment landscape.

 

 

 

 

 

 

 

 

 

 

 

The FTSE China A50 Index stands as a robust representation of the largest A-Share companies in China.
Investors, both domestic and international,
closely monitor its dynamics, accessing it through various investment portfolios, such as QFII and Stock Connect.

Meanwhile,
the FTSE China 50 Index offers a tradable platform comprising the most substantial and liquid Chinese stocks listed on the Hong Kong Stock Exchange. Encompassing H Shares, P chips, and Red Chips,
this index mirrors the multifaceted nature of the market.

Beyond the announced changes, other indices within the extensive FTSE China Index Series have also undergone modifications. With over 260 indices covering diverse shares, including A Shares, B Shares, H Shares, Red Chips, and P Chips, this comprehensive series continues to evolve to capture the ever-changing investment landscape.

 

 

 

 

Conclusion

All modifications outlined in this review are set to take effect with the opening of trading on June 19, 2023. As the market adapts to these changes,
the subsequent review scheduled for September 2023 promises to offer further insights into the evolving dynamics of the Chinese equities market.

For a more in-depth understanding of the inclusions and exclusions across the FTSE China Index Series,
referring to the official source where this information was released will provide a comprehensive view.

In conclusion, the FTSE China Index Series review for June 2023 reinforces the indices’ role as steadfast indicators of the Chinese equities market’s ebb and flow.
The carefully orchestrated additions and deletions underline the indices’ adaptability,
serving as vital tools for investors navigating the intricacies of this dynamic market landscape.

 

 

 

Exploring the FTSE China A50 Index Changes

Severe unrest facing Chinese yuan

Severe unrest facing the Chinese yuan not seen in 15 years.

the ıts currency, the yuan, witnessed significant declines,
as the Hong Kong index fell by 6.4% to its lowest level in more than 13 years in trading on Monday,
prompting investors to abandon Chinese assets,
and this caused the Chinese CSI 300 index to decline by nearly three percent.
Which China has not experienced since the end of the global crisis in 2008

Here are the details from the Evest platform

 

 

topıcs

Communist Party Congress

A very busy week of events affecting the movements of the markets
Federal meeting and the most important influences on the decision this week.

 

 

 

 

 

 

 

Communist Party Congress

The Communist Party Congress had a major impact on the matter,
as there was not enough economic concentration, as Andrew McCaffrey,
chief global investment officer at Fidelity International Asset Management, said,
who said that there was a case of surrender by international investors for fear of exposure.

 

 

This was a comment on the course of indirect matters with hope towards the State of China,
which witnessed significant declines in many fields.

The shares of technology companies coordinated by Holding Ltd. and Ali Baba fell by 11%,
which affected the Hang Seng Tech index, which also declined by 9.7%.

Chinese developers registered in Hong Kong fell by almost 10.8%.

 

The Iwan was greatly affected by these events, as it reached its lowest level in 15 years,
as it recorded approximately $ 7.30 in Monday’s trading.

 

The spread of the Corona virus has led to several areas, including tourism and investment,
whose consequences have been reaped by China so far

On Monday, China witnessed the largest outflow in nearly nine years,
as foreign investors netted about $2.47 billion in inland
Chinese stocks via Stock Connect. By 3.9% in the quarter from July to September.

But despite this, China is still in great danger due to the occurrence of these successive crises.

 

artıcle name Severe unrest facing Chinese yuan

 

 

 

 

 

 

 

A very busy week of events affecting the movements of the markets

Amid more US data
The US Federal Reserve decided to slow down its economic
tightening policy for fear of weak growth and stagnation crises.
The core personal consumption expenditures index saw
a noticeable rise in the last statement for the month of September,
and growth rose in the third quarter of this year.

 

The European economy is also witnessing a noticeable decline,
while the European Central Bank’s decisions have been responded to quickly and remarkably by the market,
which has restored hope for the decision-makers. As for the Bank of Japan,
it did not increase the interest rate and remained committed to its doctrine.

 

And in a state of weakness that began to appear on the US dollar during the last week of trading,
we are waiting for the decisions of the Federal Reserve meeting
that will raise the interest rate from 75 to 50 basis points,
while the voice of the fifty is getting louder, as the economy and
growth are in a state that cannot bear the pressure from The Fed accepted
, and the US ten-year treasury bond yields were also affected against their highest levels in October,
reaching 4.33%, but the US Federal Reserve cannot return from raising interest rates,
especially after the recent inflation data. So growth is not affected.

The US dollar index

witnessed a noticeable decline in the last trading week, when it reached 110,751

The euro also began to recover during that period, causing it to reach 1.0093 before the European Central Bank data,
and it also fell to 0.9956, reaching its lowest levels.

The interest rate was raised by the European Central and
it changed the conditions for obtaining loans in an effort to curb inflation
and reduce the volume Balance Sheet.

 

The European Central Bank is following the same path as the dollar,
as it seeks to reduce inflation to reach this 2%,
and as a result it has raised interest rates by seventy-five points for the second time in a row,
bringing the interest rate to nearly fifteen percent.

The sterling pound continued to rise this week,
reaching the level of 1.1645 against the US dollar, after opening the week at the level of 1.1332,
but so far the sterling has fallen by fourteen percent from the beginning of this year.

 

Sunak took office at this time,
one of the things that sparked controversy and affected the sterling significantly during the past week,
and the market response was positive towards this change,
as the pound recovered and bonds rose significantly in light of expectations
that the new prime minister will follow a more traditional approach to restore credibility
in Facing the economic challenges looming on the horizon and threatening the UK economy,
but the challenges that the British economy is currently going through are the biggest influence on the scene,
no matter how impressive the current progress.

 

artıcle name Severe unrest facing Chinese yuan

 

 

 

 

 

 

 

 

 

 

Federal meeting and the most important influences on the decision this week.

In light of the US market data, which witnessed some fluctuations recently after the Fed’s tightened policies,
the US bond market witnessed significant negativity during the recent period,
which may force the Federal Reserve to reduce the interest rate increase at its meeting on Monday,
according to economists’ expectations, as US bond yields have declined For 10 years, by about 4%,
affected by interest rate decisions.

Investors also expect to stop these declines if the Fed begins to reduce interest rate increases.

Fed officials have begun to tend to this step, which is to reduce interest rate increases,
as is the case in Europe, as well as the Canadian Bank, although so far it is just an idea only,
but it is an inevitable option, as it is expected that the Fed will reduce or slow down the pace Raise rates
by the end of the year It is possible that neither Fed Chairman Jerome Powell nor the October jobs report
will signal these expectations, which will likely count on whether inflation is showing signs of a steady
decline from its highest levels in four decades while there is still a deep division In the views of investors
who were divided between two teams between supporters and opponents of the Federal Reserve’s decision,
which is about to be issued, taking into account the continuation of the future contracts,
the chance of continuing to increase the interest rate by another seventy-five points.

 

 

In an important statement,

Liberia, the facilitator, global head of price strategy for DTD Securities,
said that the most important thing was Powell’s indication of his decision to tighten.
While Powell has to say that the ultimate risks are to the upside,
but the Fed’s tapering message is seen by the market as optimism as the recent recovery
in the bond market has seen sharp declines this year as
it has not happened in about 16 years during the US financial crisis.

 

The Institute of Supply Management’s index of factory activity will be greatly affected by the Fed’s decision,
as it is expected to decline to the 50 level during the month of October,
and the services measure is also expected to decline to 55.5 and at the end of the week the jobs index,
which is expected to provide hundreds of thousands of new jobs during the month.
With the expected decline in wages of up to 4.7%,
we are witnessing the next two weeks full of critical decisions that
will be decided by the Fed’s meeting requirements and employment data.

 

 

artıcle name Severe unrest facing Chinese yuan

Shale drilling activity recovers

Shale drilling activity recovers

before the implementation of the “OPEC +” plan.

With the approaching date of implementing the “OPEC +” plan next November,
which aims to reduce oil production by two million barrels per day,
this is the largest reduction since the Corona pandemic,
and this decision prompted the United States to pump more barrels,
as the number of rigs reached the highest level recorded in two years,
which came after it recorded a rise of about 21 excavators during the last six weeks

 

Topıcs

Biden and the OPEC + decision

Elon Musk started taking steps

A very fierce week waiting for the new increase in interest and developments in China.

 

 

 

 

 

 

 

 

Biden and the OPEC + decision

After the “OPEC +” decision was issued, this came to the disappointment of US President Joe Biden,
as he described it as his “disappointment,” and that this decision related to production cuts was a “short-sighted decision,”
noting that some low- and middle-income countries would be greatly affected.
In light of the conditions of high energy prices,
while “Biden” and his administration are trying to buy back American
oil at prices ranging between 67 and 72 dollars a barrel,
and this is an important part of the plan that is being prepared in order to build strategic stocks,
and this also came in light of the attempt to release About 15 million barrels,
which represents a percentage of the strategic oil reserves, to be delivered in September

 

The return of the increase

in drilling and exploration
Businessmen in the field of shale oil stated that
the decisions of “OPEC +” are considered a prelude to raising prices,
which enables many companies interested in exploration operations to increase their activity,
especially the exploration for American oil,
and thus we see the extent of the great activity of drilling operations in shale oil,
which has begun to return It has returned to its levels before the Covid 19 pandemic,
while the statistics in this regard indicate active drilling rigs with about 612 rigs,
which operate specifically in oil fields, and also included 157 rigs specialized in drilling for gas.

 

 

artıcle name Shale drilling activity recovers

 

 

 

 

Elon Musk started taking steps

towards making some deals and preserving his capital to complete them.

The International Washington Post has issued some documents stating that
Elon Musk has decided to reduce Twitter’s workforce
by approximately 75% in the coming months,
as this percentage represents approximately 5,500 employees out of 7,500 employees.
Today, Musk stated that he wants to maintain only 2,000 employees during the coming period.

 

After major legal battles over the Twitter deal,
the owner of Twitter ended up with some indications during the previous month
that reducing its workforce is a foregone conclusion to cut costs and
that he will go ahead with his way to buying Twitter and make it his private partner.

And the CEO of Tesla to reduce the number of employees in his initial offer to the banks to obtain financing,
according to what Bloomberg reported earlier, as this deal, scheduled for the twenty-eighth of October,
amounting to about $ 44 billion to buy the company,
is one of the most important and dangerous steps of billionaire Elon mask.

While the results Snapchat showed negatively impacting results on social media shares.

Snapchat recently showed continuous declines that in turn affected social media shares,
and for the third time in three quarters, the partner declined significantly,
which led the company responsible for Snapchat to announce a slowdown in growth,
and it announced this decline last Thursday by about 27% in extended trading During the American period
after the closing of the New York market.

 

 

These meager results directly

affected technology stocks, as the Nasdaq 100 index fell by 0.9%,
and it is also expected that losses on its partner Snapchat will continue to be
about $29 billion in the fierce competition of its partner Snap
and other platforms such as Facebook, a subsidiary of Meta, and Google,
a subsidiary of Alphabet Inc. Declining advertising funds this year.
The high rate of inflation puts pressure on consumer spending and
spending by companies operating in the field of technology,
this has come to a slowdown in spending on marketing, according to Snape’s management.

 

artıcle name Shale drilling activity recovers

 

 

 

 

 

 

A very fierce week waiting for the new increase in interest and developments in China.

 

With the escalation of the energy crisis in the euro area and the outbreak of unprecedented inflation,
and coinciding with the recession that the country has reached,
it is certain that the European Central Bank will certainly raise interest rates and follow monetary tightening policies.

 

 

The European Union

has not gone through these crises for a long time,
and if the economic situation is similar to the 2008 crisis caused by the collapse of the American Lehman Brothers bank,
which previously decided to raise borrowing costs from the European Union,
history may repeat itself and if events differ, but Hungary is one The result is considered one,
despite the aggravation of the current crises and the ferocity of inflation that the European Union has never seen before.
The Russian war in Ukraine has left many crises that will take a lot of time to treat their consequences.

 

 

It is not that easy for decision-makers to raise interest rates this time,
it will cause a major recession that will negatively affect economic growth,
which is fighting against inflation, despite this insistence on raising interest rates by another 75 basis points,
which is the dominant matter for the majority of decision-makers in the European Union,
according to Bloomberg Economics, the European Central will focus on the very high inflation rate
and will continue to raise interest rates with the weakness of the economy in October,
and the deposit rate will end the tightening cycle at 2.25% next February,
without regard to the size of the consequences of that violent decision,
according to the visions of economists and analysts.

 

 

Looking at some countries following the same path, GDP reports may show a return to growth in the US,
a contraction in Germany, and a slowdown in France.
The selection of a new prime minister in the UK as well as the unchanged interest rate decisions in Japan
, Russia, and Brazil will be among the other highlights
that will move the market violently this week while coinciding with
them is the US government’s estimate of growth for the third quarter,
as well as income and inflation figures for the month September and the Personal Consumption Index as well.
It is expected that domestic production will be buoyant from July to September by about 2.3%,
according to reports and a poll of economists.

 

 

Next Friday

will witness violent movements in the market,
as it is scheduled to disclose income and spending reports for the month of September,
and this will determine the extent of the economy’s momentum during the fourth quarter of this year,
as will also appear indicators of inflation, which rose in a crazy way from about Forty years,
which is followed by Federal Reserve officials earn.

 

 

In the Asian region, it seemed interesting. Despite the decline in the Japanese yen,
the Governor of the Central Bank of Japan, Haruhiko Kuroda, shows some optimism,
as he declared commitment to very low rates to reach a satisfactory level regarding
inflation despite the pressure facing the currency and raising the return ceiling from the Bank of Japan,
which It will meet to decide on future policies after closely observing the path of the yen during the last period.

 

 

China has continued its path towards

solving some of the crises it faced during the recent period,
such as the housing crisis and the decline in exports.
It has appointed a new team that will monitor investors tightly,
and this indicates a new path in economic policies,
especially after the recent decline in GDP during the quarter.
South Korea will also release GDP figures next Thursday which are expected
to show slowing growth and in Southeast Asia,
Singapore releases its latest inflation figures,
which are likely to show continued price increases at their highest level in nearly fourteen years. year,
while the Central Bank of the Philippines will be monitored as it seeks to defend
the currency against more consecutive losses that it witnessed during the previous period of this year,
especially after the recent interest decisions.

In view of Russia, which is beginning to show exhaustion from its war with Ukraine,
it was decided to hold a meeting of policymakers regarding the aggravation of the inflation crisis
and the loss of confidence that the country is suffering from during this period.

Next Monday will also witness Chile’s report on employment,
manufacturing, and copper production data, as well as the meeting of the Central Bank’s advisor,
who met to maintain the rate at 11.25%.
And the role of economic tightening taken by Mexico has led to the reduction
of consumer prices despite the weak growth.

 

 

artıcle name Shale drilling activity recovers

 

 

 

The United States recognizes the power of China.

The United States recognizes the power of China.

 

The United States began to change its perception of its biggest economic enemy, China,
after the outbreak of the war between Russia and Ukraine.
Jack Sullivan, President Joe Biden’s national security adviser,
said Wednesday that the United States is in the early years of a decisive contract that
determines the terms of our competition with the People’s Republic of China.
China has been described from

 

topics

in focus

the details

 

 

 

 

 

in focus

After the publication of the National Security Strategy conducted by the US administration,
Sullivan stated that what enhances the influence of the People’s Republic of China at home
and abroad is the illiberal vision adopted by China in technology competition between it
and between the West and its control over its political and economic vision.

 

 

The US administration launched its 48-page document to develop a new national security strategy,
the most important of which were China and Russia,
where the document described the two countries as increasingly
allies while each country poses a different challenge.
The strategy described China as the only competing country of the United States and
has both the intention to reshape the international system and increasingly economic,
diplomatic and military power as well as the technological ability to do so. As for Russia,
it is stated in the document that it is a very dangerous country and
represents a great danger that must be curbed as soon as soon as possible,
and that is the biggest challenge.

 

 

the details

As China seeks to conclude a shy peace document between it and the United States,
she talked about this initiative (Moyneh), the spokeswoman of the Chinese Foreign Ministry.
She said through a press conference held in Beijing that the United States and China
are the two countries responsible for peace and economic stability in the world.
They must assume that responsibility and make mature decisions mature enough to manage things.
Disagreements must be liquidated and restore their relationship
to the path of healthy and steady development.
She also said that these differences cost the two countries more losses,
while having joint cooperation and setting aside differences
will bring profit and brilliance on both sides.

 

The strateche also stated that in nearly eight years it will need to deter
two major nuclear powers in reference to the two countries.
To ensure that our nuclear deterrent system remains in response to the threats we face,
we are creating (U.S. nuclear power) as well as strengthening our allies’ expanded deterrence commitments
while the Biden administration asserts that
China does not seek to create conflict between the two countries
and they are looking for less or no more competition.
We all know how vigor China is to compete and control the markets.

 

article name The United States recognizes the power of China.

 

HSBC is going through a significant crisis

 

HSBC is going through a significant crisis

 

HSBC is going through a significant crisis, the deals he made in the recent period led to internal damage that caused the bank’s largest shareholders,
now call for division, as it did not stop making deals, despite this and continued to acquire in the same way.

 

Topics

HSBC Holdings
Expansion in Asia
The effect of the global network on China

 

 

 

 

 

HSBC Holdings

 

HSBC is going through a significant crisis, an unknown person from inside the bank who does not want to disclose his abyss indicates that further exits are also expected,
but are likely to be matched by the purchase of Kong, where the company said it believes the plan will have broad shareholder support.

HSBC Holdings, based today in London, was founded by Hong Kong and Shanghai Banking Corporation in 1991 as a collective holding company.

Interestingly, the name HSBC is derived from the initials of Hong Kong and Shanghai Banking,
the founding member of HSBC and we did not expect it to reach that limit on internal problems now.

 

As the bank is considering selling its arm in Canada for up to 10 billion US dollars,
it is clear that it will not stop its sales and complete its plan in Canada and elsewhere last summer,
Bloomberg published a report on plans for an initial public offering of HSBC operations in Indonesia,
and the possibility of selling its units in Oman and Russia,
where investors demanded that Oman distribute its cash dividends earlier.

 

 

Expansion in Asia

 

HSBC Bank announced two years ago the purchase of an Indian asset management company and a Singaporean insurance company.
The bank’s sales outlook may seem part of long-term efforts,
as is the aspiring view of increasing its share of the joint venture to trade securities in China,
so the rest is not humiliated, reaching 50% of HSBC Life Insurance Company.

 

Analyst Edward Firth pointed out Bing’s progress,
saying that selling successful parts of the chain now indicates the value of the global franchise they are making while remaining a theory rather than a fact.

 

 

 

 

 

The effect of the global network on China

 

The value of the bank’s comprehensive global network is a burden on Chinese insurance companies with their profitable activity in Asia,
where they also seek to separate themselves altogether from the rest of the bank’s branches.

 

The bank is trying to regain its appetite for the acquisitions it lost during the 2008 crisis,
as we did not see the significant change caused by those deals on the size and scope of the business as an island change.
The bank’s financial manager Ian Stevenson mentioned not making big deals at the moment.
He added that 20 years ago he did many things even though they did not create.

 

 

 

 

Joe Biden studies measures to restrict investment

Joe Biden studies measures to restrict investment in Chinese tech companies.

As the China-U.S. crisis escalates,
U.S. President Joe Biden’s administration is considering
curbing U.S. investment in Chinese tech companies

 

topic’s

the Chinese technology sector

Goldman Sachs expects a further rise in gas prices within Europe.

 

 

 

 

 

 

 

 

 

 

the Chinese technology sector

One person said on Friday that these investment restrictions in the Chinese technology sector
will come as an executive order signed by the president in the coming months,
and perhaps also take action against the TikTok video-sharing application,
and also impose restrictions on the use of chips used in artificial intelligence computing.

 

Currently, US companies are under increasing government scrutiny over anything sold to China,
which is the world’s largest buyer of chips thanks to electronics factories,
and Washington’s argument in this regard was that it poses a security risk to it.

 

So far, the United States has not been able to isolate the Chinese
from the entire semiconductor sector and has focused only on blocking some limited
and individual companies, but at the same time, recent steps indicate
that the US administration aims to take further measures to stop
China from accessing entire sectors of technology.

 

There was more caution from Chinese tech giants that spread widely in all countries of the world,
for example, the British Foreign Secretary decided to suppress such companies, including TikTok.

Venture capital at Chinese tech startups rose to $118 billion last year, hitting an all-time high.

 

 

 

 

 

 

 

 

Goldman Sachs expects a further rise in gas prices within Europe.

 

After Russia’s recent statements regarding the final suspension of the main pipeline
“Nord Stream 1” responsible for the flow of gas to Europe,
Goldman Sachs expects a rise in gas prices to the same record levels recorded last August.

 

Bank analysts confirmed that such news could re-recommend the uncertainty regarding
the ability of the European Union region to manage the crisis next winter.

 

Russia has refused to resume pumping natural gas to Europe through the
pipeline due to a maintenance problem due to the leakage of oil
in the main gas turbine at the Portovia pumping station,
and on the European side, they expect this to be just pressure
due to sanctions imposed after its invasion of Ukraine.

 

Prices are likely to rise from the following Monday,
as analysts expected after the flow of Russian gas stopped.

Maintenance work on the Nord Stream 1 pipeline had already begun on August 31
and the company responsible for maintenance was indicating that
its work was completed within only three days and scheduled to be completed yesterday.

 

In light of the crisis that began in February due to Russia’s war on Ukraine,
Europe decided to try to solve the problem with different
solutions and reached the formation of temporary winter stocks,
but this will not protect them from serious consequences that
could face if the continent experiences severe cold attacks at any time.

 

Historically, Russia used to send most gas exports to Europe through Ukraine,
as the data showed that the operator of the Ukrainian gas transmission system
that the quantities transported through the country,
which averaged 124.6 million cubic meters per day in 2021,
are currently at about a third of this level.

 

artical name Joe Biden studies measures to restrict investment

Electricity cuts in China cause its factories to suffer

Electricity cuts in China cause its factories to suffer and reduce production.

 

topic

China’s drought crisis caused electricity shortages

Bonds and global stocks expand their losses

 

 

 

 

 

 

China’s drought crisis caused electricity shortages

frequent interruptions and thus its impact on the economy,
in addition to the continuation of the real estate crisis
and the consequences of closures as a result of the spread of the Covid virus,
and under these conditions, industrial activity in China
contracted for the second consecutive month in August.

 

The official industrial sector purchasing managers index rose by 49.4 points in July this year,
a level still less than 50 points, which separates expansion and contraction.
The non-industrial sector index fell to 52.6 points from 53.8 points recorded last July.

 

Various reports have been mentioned about the crisis in China,
which has had a direct impact on factories and industrial production,
and the recovery of industrial production and demand still needs to be strengthened,
and the PMI measure of the manufacturing sector
that measures production still indicates deflation.

China’s main CSI 300 index fell about 0.3%.

One of the pressures faced by China is the crisis of the spread of the virus
and the closure as part of the Chinese government’s “zero Covid” plan,
according to reports, the current wave of the virus outbreak is the most widespread,
as major cities have been closed and restrictions on movement.

In addition to the drought that reached historic levels in southwest China,
which affected electricity generation, causing damage to the economy,
some factories were forced to suspend their activities until the atmosphere improved
and the tractor grade decreased and started improving hydropower.

 

However, the outlook remains positive according to economists
indicating growth in the economy of about 3.5% this year,
but this is well below the official target of 5.5% announced by Beijing,
but it has also made it clear the difficulty of achieving this goal in the coming months
of the year that it holds pace pace pace pace pace.

 

 

 

 

 

 

 

 

Bonds and global stocks expand their losses

 

and the stability of the dollar and the fall of gold towards 1700 dollars
With the tightening policies of central banks and the increase in closures in China due to the Covid virus,
all factors contributed to investors’ nervousness and
resorting to large sales of shares and bonds on today’s Thursday.
Where the global stock index recorded its lowest level in six weeks,
at the same time, the Nasdaq 100 futures contracts recorded a decline of about 1%.
European and Asian shares also declined, affected by the conditions of the technology sector,
in addition to tightening policies and continuing fears of an economic recession.
The two-year Treasury yield also reached 3.5% for the first time since 2007,
while oil prices fell due to the slowdown in China and weak demand expectations.

 

 

The dollar is stable near 109 points

Despite the rise in the US dollar index at the beginning of today’s trading,
it still maintained stability near the levels of 109 points
and has not been able to overcome it so far and head to the next ascent target at 110 points,
despite the stimulus factors from the US Federal Reserve
The dollar rose by 0.2% at 108.9 points, but it still moved sideways between 109.13 and 108.7 points.
On the euro side, despite the significant pressures during the last period and the wave of decline,
the European Central’s expectations of raising interest rates contributed
to raising the euro prices to higher Parity levels at $1,004

 

 

Gold is going down

At the beginning of trading today, Thursday, gold recorded a decline of 0.4%,
or the equivalent of $ 10 an ounce, while gold futures contracts reached $ 1715 levels,
with a change of 0.65%, or the equivalent of $ 11 an ounce,
as gold is falling to its lowest level in 6 weeks.
Thus, gold fell to the lowest levels in a month,
in conjunction with the rise in the dollar and bond yields,
which led to weak demand for gold,
in addition to the expectations of the Federal Reserve
to continue raising interest rates to fight inflation.

Markets are awaiting the minutes of the Federal Reserve meeting

Markets are awaiting the minutes of the Federal Reserve meeting
and important data for investors.

During the next week, investors are awaiting the release of
the news of retail sales in the United States of America,
in addition to a report on profits for some retailers.
Through this data and analysis,
it can build a real vision regarding consumer spending in light of the wave of price increases,
and investors are also looking for clear evidence
About the size of the expected hikes in the coming period in interest rates,
after the US Federal Reserve published the minutes of its July meeting.
As for the United Kingdom, employment data,
retail sales and inflation will be published,
and expectations are to close its transactions at 9.9%,
in light of the German economy sliding into recession.

With expectations that some central banks such as New Zealand
and Norway will announce a significant rate hike.

 

topic

The most important economic reports

The developments of the Taiwan crisis

 

 

 

 

 

 

 

The most important economic reports

We are now talking in more detail about the most important economic reports
and news that investors are waiting for this week:

 

1- Retail sales in the United States of America

Next Wednesday, retail sales figures for the month of July will be published as researchers
seek any indication of how strong consumer spending is
after growth slowed in the second quarter of the year.
While expectations indicate a rise by 0.1% after rising by 1.0% in the previous month,
in light of the decline in gasoline prices, which is the basis for the slowdown.

With the expectation also of data for the month of July,
which concerns the housing market in the United States,
which will be released on Tuesday of this week,
after it fell to its lowest level in the last nine months.

Also, data for existing homes in the United States during the month of July,
which will be released on Thursday,
after it recorded a decline for the fifth consecutive month in June
and recorded its lowest level in two years.

 

2- The minutes of the US Federal Reserve meeting for the month of July

The US Federal Reserve is preparing to publish the minutes of its July meeting next Wednesday,
after economic data was released indicating
that the central bank could achieve a slight decline in the economy,
which investors hope for.

With the positive jobs report released in July,
it led to a state of some stability regarding the recession phase.

At a time when inflation data recorded its largest slowdown in a month since 1973
Policy makers’ expectations for tightening have been dented,
amid warnings by economists that inflation will rebound in the coming months.

 

3- Important economic data in the UK

The United Kingdom is currently heading towards a recession, as indicated by the Bank of England,
with investors awaiting data on inflation, employment and retail sales this week.

Expectations indicate that inflation figures will witness an acceleration in July from 9.4% to 9.9%,
after it reached a peak in October of the previous year to 13.3%.

The markets are awaiting retail sales next Friday,
and expectations are for a decline of about 3.3% on an annual basis.
At a time when the labor market reached its strength after 300,000 jobs were added during the last three months,
and the unemployment rate fell to 3.8%.

 

 

 

 

 

 

 

 

 

The developments of the Taiwan crisis

and China accuse America of not wanting stability across the Taiwan Strait.

After the tension between China and America recently,
following the visit of House Speaker “Nancy Pelosi” to the island of Taiwan,
which China considers part of its territory,
and that it seeks to try to annex it to China after the end of the Chinese civil war in 1949.
On Sunday, China commented that the United States does not want stability across the Taiwan Strait,
adding that it warns “not to play with fire” on the issue from the US side.

 

Where the Chinese Embassy in the United States directed
that “members of the US Congress must act in line with the one-China policy pursued by the US government,”
and its assertion that Washington does not seek to stabilize the Taiwan Strait,
and that it is trying hard to increase the pace of tension between the two sides.
Taiwan and China, which China considers clear interference in China’s internal affairs,
according to the principle of “one China”.

 

 

Amid the tensions, a delegation from the United States visited Taiwan on Sunday,
where the delegation included House Democrats John Garamendi,
Alan Lowenthal and Don Pierre, as well as Republican Amata Coleman Radvajen.

 

 

The official “ Xinhua News Agency” ,
in response to the congressional delegation’s visit,
published the headline,
“American politicians must stop playing with fire on the Taiwan question.”

 

The newspaper considered that “American lawmakers are just opportunistic personalities,
as they think about their own political interests
with the approach of the mid-term presidential elections next November.”

 

While the American Institute explained that
“the meeting conducted by members of Congress in Taipei comes
within the framework of a broader tour of the Indo-Pacific region,
adding that officials will discuss issues including relations between
the United States and Taiwan and global supply chains.”
The Taiwanese Foreign Ministry said on Twitter
that Deputy Foreign Minister Tah Ray Yu “welcomed Taiwan’s old friend,
US Senator Ed Markey,
and his accompanying delegation.”

 

 

On Sunday, the Taiwan Ministry of Defense announced
that it had detected 22 Chinese aircraft
and 6 ships moving within the Taiwan Strait
Where China previously pledged that it will not cooperate on any “separatist activities”
in Taiwan, and that if the provocation from the US side continues,
it will resort to controlling the island by force if necessary,
and it is reported that Taiwan is currently subject to self-rule

 

artical name Markets are awaiting the minutes 

The period of inflation in the United States

The period of inflation in the United States will not affect the decision to raise the Fed interest rates

Despite the ongoing sizzling core inflation,
consumers in the United States were relieved by the decrease in fuel costs
over the past month as they awaited significant economic news this week.
The consumer price index is predicted to increase by 0.2 percent in July
compared to June, which would be the smallest increase since the year’s commencement in 2021.

At the moment, inflationary tensions remain high,
while the July payroll report was released which represented an expected rise in hourly earnings,
at a time when Fed policy makers are leaning towards further rate increases.

Attention turns to the meeting that brings together the regional Federal Reserve chief from Chicago and Minneapolis
Also, the Producer Price Index and Consumer Confidence Index,
which are released this week

Reports and expectations for market analysts indicate
that the jobs report during July is enough to solve the problem,
and that we still haven’t reached a recession,
and the Fed will have to raise another 75 basis points in September.

topic

US draft new budget

China has outperformed its initial public offerings

The period of inflation in the United States will not affect the decision to raise the Fed interest rates

 

 

 

 

 

 

 

 

US draft new budget

 

The new budget package, which advances US President Joe Biden’s aims in environment,
energy, taxes, and health, was started by the split US Senate on Saturday
and passed its first test in kicking off Congressional proceedings.
The budget bill turns into a political fight over high inflation, petrol prices,
and other issues. It is a microcosm of earlier Democratic failures to pass trillion-dollar bills.

 

The US economy added 528,000 new jobs in July

 

The actual results of the jobs report in
the United States came much greater than expectations,
in reference to the continued strong demand for labor,
and allays fears of the American economic recession,
thus the unemployment rate fell to the levels of February 2022
and determined before the outbreak of the new Corona virus pandemic.

 

 

 

 

 

 

 

 

China has outperformed its initial public offerings

 

since the beginning of the year, and it has reaped $58 billion

Since the start of this year 2022,
the total value of public IPOs on the mainland stock exchanges in China has increased.
At 57.8 billion dollars,
it is the largest value compared to other stock exchanges like London and Hong Kong,
which are experiencing a dearth of significant IPO deals in all industries ,
significant financial hubs

 

 

In January, at the beginning of the year,
there were 5 IPOs in China exceeding one billion dollars,
and thus the Chinese stock exchanges began to be full of vitality at the beginning of the year,
unlike the New York Stock Exchanges and the Hong Kong Stock Exchange,
which reports indicated that there was only one subscription,
and also zero subscription on the London Stock Exchange.

 

 

China was thus violating the global economic situation,
which is greatly affected by high interest rates and fears of recession in the United States,
which led to the suspension of fundraising operations for shares in other places,
and the most important characteristic of the initial offerings
in Asia is that they are more confrontational to the local investor.

 

 

On the other hand

some market observers believe that the rises in the initial offerings,
in light of the difficult economic conditions,
lead to more concern by increasing the severity of the current situation after the outbreak of the epidemic,
at a time when China is seeking a “zero Covid” strategy. Growth during the current year has declined by 5.5%,
and this reduces optimism about the recovery.

 

 

China was the biggest beneficiary of the increase in offerings,
as the returns that come from the IPO globally doubled to 44% in 2022,
after it was 13% in the last year 2021, a difference of three times
After listing on the China Stock Exchange,
the shares of listed companies achieved profits during the current year
only by about 43% compared to the subscription price,
at a time when shares are declining in Hong Kong.

 

 

The technology sector in China is the largest in terms of sales,
as the first subscription to the company rose
(Hygon Information Technology), generating a profit of $1.6 billion
and thus exceeding the total value offered by more than 2,000 times,
and orders will be received in August
Thus, we find that the stocks that are currently entering China come from the technology sector,
and investors are also interested in them for their focus on building local capabilities.

 

 

 

 

 

 

 

 

 

The period of inflation in the United States will not affect the decision to raise the Fed interest rates

 

Despite the ongoing sizzling core inflation,
consumers in the United States were relieved by the decrease in fuel costs over
the past month as they awaited significant economic news this week.
The consumer price index is predicted to increase by 0.2 percent in July compared to June,
which would be the smallest increase since the year’s commencement in 2021.

 

At the moment, inflationary tensions remain high,
while the July payroll report was released which represented an expected rise in hourly earnings,
at a time when Fed policy makers are leaning towards further rate increases.

Attention turns to the meeting that brings together
the regional Federal Reserve chief from Chicago and Minneapolis
Also, the Producer Price Index and Consumer Confidence Index,
which are released this week

Reports and expectations for market analysts indicate
that the jobs report during July is enough to solve the problem,
and that we still haven’t reached a recession,
and the Fed will have to raise another 75 basis points in September.

 

US draft new budget

 

The new budget package, which advances US President Joe Biden’s aims in environment,
energy, taxes, and health,
was started by the split US Senate on Saturday and
passed its first test in kicking off Congressional proceedings.
The budget bill turns into a political fight over high inflation,
petrol prices, and other issues. It is a microcosm of
earlier Democratic failures to pass trillion-dollar bills.

 

 

The US economy added 528,000 new jobs in July

 

The actual results of the jobs report
in the United States came much greater than expectations,
in reference to the continued strong demand for labor,
and allays fears of the American economic recession,
thus the unemployment rate fell to the levels of February 2022
and determined before the outbreak of the new Corona virus pandemic.