The Spend, Spend, Spend Strategy..
Temu is going all in on Marketing (including in this Sunday’s Super Bowl) Marketing spend: • 2023 - $1.7 billion • 2024 - $3 billion (est.) source : wsj
THE SILENT BULL MARKET...
Japanese stocks index Nikkei 225 closes up 1066.55 points and within striking distance of all time high 38957! It briefly crossed the 38,000 mark for the first time since the asset bubble burst in 1990 as it rallied about 3% and pushed 34-year highs. In times of financial repression aka negative real rates, real assets go up. January PPI came weaker than expected (+0.0% m/m vs. 0.1% expected) Futures going higher still: Nikkei 38110 Source chart: IG
Donald Trump is pitching a 60% tariff on all Chinese imports.
That would shrink a $575bn trade pipeline to practically nothing, Bloomberg analysis shows. For China ’s economy and its slumping stockmarket — down >40% from its 2021 high — that’s bad news. Worse, Trump’s rhetoric may add pressure on Biden to take harsher measures in the run-up to election day Source: HolgerZ, Bloomberg
China's aging population: by 2050 the median age will be 50.7
Source: Markets & Mayhem
The Economist cover
Source: The Economist
Japanese Stocks Hit 34-Year High
For the first time in 34 years, the Nikkei jumped above 37,000. The index is now about 5% away from taking out the all-time high set all the way back in December 1989. Source: barchart
India is close to finalising a first-of-its-kind trade deal
This first-of-its-kind trade deal that could see a small group of European nations invest as much as $100 billion (CHF87 billion) over 15 years in exchange for easier trade access to the world’s most populous nation, according to people with knowledge of the matter. The European Free Trade Association (EFTA), which comprises Switzerland, Norway, Iceland and Liechtenstein, made a commitment to invest in India as part of a trade pact that’s in the final stages of negotiations, the people said, asking not to be identified as the talks are still ongoing. The contours of the deal have been agreed and deliberations currently centre on the final investment amount, which could be as much as $100 billion over 15 years, some of the people said. While India wants the commitment to be legally binding, one of the European officials said the amount will likely be framed as a goal, with no legal means to claim it included in the language of the agreement. If finalised, it would mark the first time an investment commitment of this nature is secured by India as part of a free trade agreement. As mentioned by Ritesh Jain, India is the biggest beneficiary of Ukraine/Russia war. A non aligned country with good relationship with everybody , young population is attracting investment commitment from across the world.
JUST IN: China's consumer prices declined at the fastest speed in 15 years in January.
CPI fell 0.8% in January on an annual basis, more than the median estimate for a 0.5% decline in a Reuters poll. This was its fourth straight decline and its biggest drop since 2009. Meanwhile, China’s PPI fell 2.5% in January from a year earlier, the National Bureau of Statistics reported Thursday, slightly better than expectations for a 2.6% decline.
