South China Morning Post (September 11)
“China’s top legislature has reviewed a plan to gradually raise the retirement age,” which is one of the lowest in the world at 60 for men and 50 (blue collar) or 55 (white collar) for women. The move comes “after China’s leadership has repeatedly called for the retirement age to be delayed in recent years, as the country faces growing pressure from a declining birth rate and an ageing population.”
Tags: $60, 50, 55, Birth rate, China, Declining, Leadership, Legislature, Lowest, Pressure, Retirement age, White collar
Financial Times (September 10)
“Central bankers on both shores of the Atlantic are under pressure from many sides — political circles, financial markets, public opinion — to cut interest rates.” But the European Central Bank (ECB) faces distinctly different circumstances than the Fed or BoE. The ECB has already cut rates to 3.75 per cent, which “is already a solid 1.5 percentage points below” the Fed’s rate and inflation is less controlled. “The ECB has no room to cut rates.” It should “maintain a moderately restrictive stance on monetary policy to make further progress on inflation.”
Tags: 3.75%, BOE, Central bankers, ECB, Fed, Financial markets, Inflation, Interest rates, Monetary policy, Political, Pressure, Public opinion, Restrictive
Bloomberg (September 10)
“A deepening selloff in Chinese stocks is exacerbating a crisis of confidence in the world’s second-largest economy, heaping pressure on policymakers to halt the downward spiral.” The benchmark CSI 300 Index “of the nation’s onshore shares is near the lowest levels since January 2019, yet another reflection of the depth of the market gloom.”
Tags: 2019, Benchmark, China, Crisis of confidence, CSI 300 Index, Deepening, Downward spiral, Exacerbating, Policymakers, Pressure, Selloff, Stocks
New York Times (September 8)
“Even by August’s typically volatile standards, markets have been especially choppy this month, with some of the biggest intraday stock swings of the year occurring over the past week.” Earlier in the year, corporate profits allayed investor fears, helping to “drive an impressive rally in the S&P 500. But this quarter has been more mixed, as multiple companies warned of declining consumer demand.” We may be approaching “the end of ‘fun-flation.’”
Tags: Allayed, August, Choppy, Consumer demand, Corporate profits, Intraday, Investor fears, Markets, Mixed, Rally, S&P 500, Stock swings, Volatile
Chicago Tribune (September 8)
Amidst the flood of steel from China, “Nippon Steel was well advised to look for ways to strengthen its hand” while “the U.S. Steel board of directors was free to approve the $14.9 billion acquisition offer, as they did in April.” Nippon Steel believes “the investment will revitalize American steel manufacturing and pay dividends in further industrial cooperation, and most economists, liberal and conservative, agree.” Unfortunately, the merger is being uprooted by politics.
Tags: $14.9 billion, Acquisition, Approve, China, Dividends, Economists, Investment, Manufacturing, Merger, Nippon Steel, Politics, U.S. Steel
Investment Week (September 6)
Japan was “historically seen as a ‘value trap’” where “the interests of minority shareholders were ‘subordinate to those of other stakeholders’” as summed up by one portfolio manager. But things have changed. “After a decade of reforms, ‘Abenomics’ and a push towards fairer corporate governance, investors have started to feel the Japanese market is turning a corner.”
Tags: Abenomics, Corporate governance, Interests, Investors, Japan, Market, Minority shareholders, Portfolio manager, Reforms, Stakeholders, Subordinate, Value trap
Fortune (September 5)
“JPMorgan joins a growing chorus of global firms downgrading their expectations for China’s stock market, following similar moves by former China bulls UBS Global Wealth Management and Nomura Holdings Inc. in the last few weeks. It signals exclusion of China is becoming a popular strategy for investors and analysts amid the country’s dimming prospects and the likelihood of better returns elsewhere.”
Tags: Analysts, China, China bulls, Downgrading, Exclusion, Expectations, Investors, JPMorgan, Nomura, Stock market, Strategy, UBS
Reuters (September 5)
“Global property markets, rattled by the steepest rise in interest rates in a generation, will get little relief from the gradual easing of borrowing costs, with scant hope of a return to the free money that fuelled a boom.”
Tags: Boom, Borrowing costs, Free money, Global, Gradual easing, Interest rates, Property markets, Rattled, Relief, Rise, Scant hope, Steepest
Rolling Stone (September 4)
“Economic policy has become a centerpiece of both campaigns as Harris and Trump battle to win over anxious voters.” But Trump’s plan to “impose universal tariffs on all imported products” is not a hit with economists or Wall Street. Goldman Sachs has warned “that a victory by former President Donald Trump would likely lead to an economic downturn.” In contrast, the bank forecasts the Harris plan would provide a boost to GDP growth.
Tags: Boost, Campaigns, Centerpiece, Downturn, Economic policy, Economists, GDP growth, Goldman Sachs, Harris, Tariffs, Trump, Voters, Wall Street
Barron’s (September 4)
“Oil prices fell below $70 a barrel on Wednesday despite reports that OPEC+ nations are considering delaying a planned oil output hike in October.” One of the main drivers was ”weakening demand from China.” Other factors included the situation in Libya and “fears about a weakening U.S. economy.”
Tags: 70, Barrel, China, Delay, Fears, Libya, October, Oil prices, OPEC, Output hike, U.S., Weakening, Weakening demand
