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China and Japan are rebuilding this time And More

  • Writer: Abhimanyu Gupta
    Abhimanyu Gupta
  • Aug 16, 2020
  • 2 min read

Updated: Oct 14, 2021

  1. The euro area has outperformed the US in terms of daily economic activity and growth numbers. From currency growth to equity indices to daily public transport, they have rebounded much better than the US.

  2. There is high inflation fear priced in the treasury market instruments. This has led people to flee to safer assets like Gold, as a good store of value. This narrative can weaken the dollar to levels never seen before.

  3. Also, as US plans to keep rates low and accommodative, given the weak rebound in activity, investors aren't really interested to park money in dollars.

  4. There is study and analysis which shows that Index inclusion sometimes may be a deal breaker for the company. As passive index funds buy them just for the mandate and not basis the earnings of the company strength.

  5. Though euro strengthening signals striking euro area pandemic response, it also reflects that a strong euro would hurt exports in a region where international trade drives 30 % of the GDP.

  6. The Trump administration alleging Chinese companies without substantial evidence can outplay US presence in China. They now demand a price for making the deal cheaper by imposing a ban on the Chinese company. They are pushing for data security and privacy and fear the US citizen information compromise to the Chinese.

  7. Modern Monetary Theory is mainstream given that the treasury has to fund pandemic benefits but also have the ability to service their debt, which is indefinitely fund its debt.

  8. Japan is in very bad shape, where It experienced the worst GDP numbers this quarter dating back to 1955. Furthermore, given the grim outlook for overseas demand for cars and manufacturing exports, things look shady for the country.

  9. China is reshaping the economy towards more populist and anarchical ruling ideology. State members have people and leaders across the corporate sector in their strategy teams.

  10. Gold bought in plenty now helps you raise finances, in the form of gold loans. The loan value for the gold held as collateral has increased many fold over the months with the rising underlying price, but lenders have to maintain buffers to see if the yellow metal falls.

  11. Should we have min wages? Does that help or damage status quo?- It was once debated that this helps reduce the social disparity and dynamics, or artificially inflate the economy. The aim of this concept is to stop corporations from squeezing their workers in compensation negotiations.

  12. Governments need to understand that this is the time when they need to reshape and reskill their public private partnerships and build respectable relations to develop sustainable businesses.

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