The lesson from Japan:
If you don't get your debt under control, you have to use your central bank to cap yields to avoid a debt crisis, causing big Yen devaluation. If the Euro zone doesn't find a way to bring high periphery debt levels down, the Euro will follow the same path. Source: Robin Brooks
China’s economic miracle is ending, leaving President Xi Jinping w/a challenge none of his predecessors faced:
How to govern after the boom. In a democracy, the gloomy mood in the country would spell trouble for the leader. Since Ronald Reagan in 1980, US presidential candidates have posed a simple question to voters: Are you better off today than you were four years ago? When the answer is “no,” it’s time for the White House incumbent to pack their bags. Source: Bloomberg Economics
Meanwhile in Taiwan...
Source: War Intel
BREAKING 🚨: China
China sees largest bank withdrawals in history last month of just under 4 trillion yuan Source: Bloomberg, Barchart
A scary chart... the global impact on GDP of a war in Taiwan...
Source: Bloomberg, Michel A.Arouet
Solar stocks are rallying, with a boost from China.
China's Solar Industry Group calls on members to crack down on low-price competition to stop a price war. Invesco Solar ETF (TAN) jumped almost 9%. Source: HolgerZ, Bloomberg
Japan's 10-Year Bond Yield hits 1% for the first time in more than a decade
Source: Barchart
China may well be the world leader for de-risking trade ties
• Chinese firms have been developing ties with emerging markets over past ten years • This reduces China's reliance on unfriendly markets (🇺🇸🇪🇺), shielding Beijing from geopolitical tensions Source: FT, Agathe Demarais
