Fortune (April 14)
“President Donald Trump’s trade war with China could lead to the end of globalization. But it’s not a certainty that the U.S. will emerge as the victor in the new economic world order.” Goldman Sachs posits “the U.S. may find it’s more reliant on China than the other way around.” Chinese imports account for 14% of total U.S. imports. Meanwhile, U.S. exports to China make up only 6% of total Chinese imports. The U.S. is also highly dependent on $158 billion worth of Chinese imports, whereas China’s relies highly on the U.S. for only $14 billion worth of goods. In these cases, the highly dependent import goods account for 70% or more of the market.
Tags: $14 billion, $158 billion, China, Dependent, Economic, Globalization, Goldman Sachs, Goods, Imports, Market, Trade war, Trump, U.S., Victor, World order
Fortune (March 22)
“Investor Danny Moses, best known for his oracular bet against mortgage-backed debt before the 2008 stock market crash, is warning of another economic red flag.” Moses believes “the market has not yet accounted for the negative economic impact of the mass cuts to government jobs carried out by the Elon Musk-championed Department of Government Efficiency.” While “disruptions in consumer confidence” are already apparent, they “have yet to be priced into the market.” He expects an “unvirtuous cycle” to result “as more fired federal workers look for private sector jobs” and “find fewer opportunities because of shrinking revenue streams in government contracts.”
Tags: 2008, Debt, Disruptions, DOGE, Economic, Government jobs, Impact, Investor, Mass cuts, Mortgage-backed, Moses, Musk, Negative, Private-sector, Red flag, Stock market crash, Unvirtuous cycle, Warning
Time (March 15)
“Amid widespread economic turmoil, the price of gold has soared to levels never seen before,” with Gold futures exceeding $3,000 per troy ounce. Prices for this safe haven investment “are spiking higher now as U.S. President Donald Trump’s tariff policies have kicked off an international trade war that has roiled financial markets and threatened to reignite inflation for families and businesses alike.”
Tags: 000 oz t, 3%, Economic, Gold, Inflation, Investment, Markets, Price, Roiled, Safe haven, Soared, Spiking, Tariff policies, Trade war, Trump, Turmoil, U.S., Widespread
Washington Post (September 13)
The White House may not immediately “move to block Nippon Steel’s bid to acquire U.S. Steel amid mounting concerns over the political and economic consequences of nixing the deal.” In recent weeks, “investors, Pennsylvania Democrats and some members of the steelworkers’ union warned that the deal’s collapse could spark an economic calamity for Pennsylvania’s beleaguered steel belt.” Optimism again appears to be growing that the deal might go through with shares of U.S. Steel rising “by more than 12 percent over the past two days of trading.”
Tags: Block, Calamity, Concerns, Consequences, Economic, Investors, Nippon Steel, Nixing, Optimism, Pennsylvania, Political, Shares, Steelworkers’ union, U.S. Steel, White House
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
Wall Street Journal (September 20)
“China’s economic and technological strength dwarfs that of the Soviet Union during the Cold War. Since 1885 the U.S. has never faced a competitor or group of competitors with a gross domestic product greater than 40% of our own. China’s economy is likely at least 75% of ours. It also has a larger navy (even more so in its home waters) and a shipbuilding capability that far exceeds ours.”
Tags: 1885, China, Cold war, Competitor, Economic, GDP, Navy, Soviet Union, Strength, Technological, U.S.
South China Morning Post (May 25)
Several factors help explain “the outperformance of Japanese shares.” Improved corporate governance and the end of deflation are important, but “the explanation with the most resonance for investors is Japan’s role as a safe haven in an increasingly risky world. This has taken on added significance because of concerns about the deepening geopolitical rift between the US and China, as well as economic and regulatory risks in China itself.” Japan boasts “the only market in Asia big and liquid enough to offer an alternative to China while still providing exposure to the reopening of its economy.”
Tags: Big, China, Corporate governance, Deflation, Economic, Exposure, Factors, Geopolitical rift, Investors, Japan, Liquid, Outperformance, Regulatory risks, Reopening, Risky world, Safe haven, Shares, US
Financial Post (January 13)
“The peculiar clemency of Europe’s winter weather this year is proving a game changer for the region’s prevailing economic and investment trends. A halving in natural gas prices over the past month alone reflects one of the mildest winters on record in the region and takes significant sting out of the Russian gas shock that followed Moscow’s invasion of Ukraine last year.”
Tags: Clemency, Economic, Europe, Game changer, Halving, Invasion, Investment, Mildest, Natural gas, Prices, Russia, Weather, Winter, Winters
New York Times (September 16)
“Pessimism is deepening as bellwether companies like FedEx and General Electric warn of worsening economic and business conditions.” On Friday, stocks declined, “ending one of the worst weeks of the year for Wall Street.” This may just be the start of bad news. “A parade of prominent investors and corporate executives made it clear that they believed the worst was yet to come for the economy and financial markets.”
Tags: Bellwether, Business conditions, Corporate executives, Economic, FedEx, General electric, Investors, Pessimism, Prominent, Stocks declined, Wall Street, Worsening
New York Times (September 10)
“The queen’s death last week, at 96, is a genuinely traumatic event, leaving many in this stoic country anxious and unmoored. As they come to terms with the loss of a figure who embodied Britain, they are unsure of their nation’s identity, its economic and social well-being, or even its role in the world.”
Tags: 96, Anxious, Britain, Death, Economic, Embodied, Identity, Loss, Queen, Social, Stoic, Traumatic, Unmoored, Unsure
