The Economist (November 9)
“America’s anti-China fervour is partly an overcorrection for its previous complacency about the economic, military and ideological threat the autocratic giant poses.” The U.S. needs to rely upon “a sober assessment not just of China’s strengths, but also of its weaknesses.” Anything less, risks letting a distorted “view of Chinese power” lead to unnecessary “confrontations and, at worst, an avoidable conflict.”
Tags: Anti-China, Autocratic, Complacency, Confrontations, Economic, Fervour, Ideological, Military, Overcorrection, Power, Sober assessment, Strengths, Threat, U.S., Weaknesses
Forbes (November 7)
Japan “faces intensifying headwinds from abroad as its biggest trading partners slow. It’s importing inflation amid rising commodities prices…. And now the BOJ is under pressure to close the gap with rising U.S. bond yields.” Doing so, however may “choke off economic growth…. Suddenly, investors must confront the reality that free BOJ cash did the most to propel Tokyo stocks higher, not some supply-side revolution.”
Tags: Supply-side revolution
Institutional Investor (November 7)
Vanguard’s departure from China, after selling its 49% stake in its joint venture to Ant in October, was such big news because it “illustrates the challenges facing foreign asset managers in China, where the opportunities are plentiful, but so are the obstacles.” Other struggling foreign asset managers may choose to utilize the cover of Vanguard’s departure to reduce their own presence in China.
Tags: Ant, Challenges, China, Departure, Foreign asset managers, Joint venture, Obstacles, Opportunities, Presence, Struggling, Vanguard
American Banker (November 6)
“Bank consolidation, caught in a 2023 deep freeze, could thaw and accelerate in the coming year and beyond, executives of acquisitive banks said during the third-quarter earnings season.”
Tags: 2023, Accelerate, Acquisitive, Bank, Consolidation, Deep freeze, Earnings season, Executives, Q3, Thaw
Investment Week (November 6)
“Fixed income markets are currently experiencing a rare irregularity. Short-dated bonds are trading at a higher yield than long-dated bonds, in other words, the yield curve is “inverted”. For investors in short-dated corporate bonds, this provides a unique opportunity to benefit from some of the most favourable forward looking relative return prospects and attractive valuations in recent history.”
Tags: Bonds, Fixed income, Inverted, Investors, Irregularity, Long-dated, Markets, Rare, Relative return, Short-dated, Valuations, Yield curve
Washington Post (November 3)
“November opened with a slew of heat records from North Africa to East Asia as abnormal warmth swelled over the Eastern Hemisphere. The exceptional warmth is a recurring theme in 2023, which is poised to become the hottest year on record for the planet.”
Tags: 2023, Abnormal warmth, East Asia, Eastern Hemisphere, Exceptional, Heat records, Hottest year, North Africa, November, Record
The Economist (November 2)
“Even as wars rage and the geopolitical climate darkens, the world economy has been an irrepressible source of cheer…. Unfortunately, however, this good cheer cannot last. The foundations for today’s growth look unstable. Peer ahead, and threats abound.”
Tags: Climate, Foundations, Geopolitical, Growth, Irrepressible, Threats, Unstable, Wars, World economy
New York Times (November 1)
“After shocks from the pandemic and Russia’s invasion of Ukraine, there’s little cushion if the fighting between Hamas and Israel becomes a regional conflict.” An escalation would cloud “the global economy’s outlook, threatening to dampen growth and reignite a rise in energy and food prices.” An escalation would also mark the first time the world has dealt with two simultaneous energy shocks.
Tags: Energy, Escalation, Fighting, Food, Global economy, Hamas, Invasion, Israel, Outlook, Pandemic, Regional conflict, Russia, Shocks, Ukraine
Wall Street Journal (October 31)
“Monetary policy officials are hinting to financial markets that the Federal Reserve will stop raising interest rates—even as the Fed signals that it is too early to declare victory over inflation. Wary investors can only speculate, while market analysts are happy to guess the Fed’s next move.”
Tags: Analysts, Federal Reserve, Financial markets, Hinting, Inflation, Interest rates, Investors, Monetary policy, Officials, Signals, Speculate, Victory, Wary
Bloomberg (October 31)
“Japan’s central bank insists it still wants to cap long-term market rates,” but their “actions suggest officials are losing the stomach for it.” Kazuo Ueda is dismantling “the cumbersome legacy of his predecessor… more rapidly” than expected “when he took the helm of the Bank of Japan.” Nevertheless, BOJ officials are insisting that the “policy is only being tweaked.” This threatens “the credibility of its communications” as “key parts of the BOJ’s entire approach to setting borrowing costs are being removed or watered down.”
Tags: BOJ, Cap, Central bank, Credibility, Cumbersome, Japan, Legacy, Long term, Market rates, Officials, Predecessor, Threatens, Ueda
