China's manufacturing activity plunges to lowest level since September 2022 📉
Source: Barchart, LESG
China’s Strategic Shift: Gold Up, Treasuries Down
In the past 5 years, their U.S. Treasury holdings have plunged from ~$1.1T to ~$760B. Meanwhile, their gold reserves have soared from ~1,850 tons to over 2,200 Source: Andrew Wells, Bloomberg
A Taiwanese official said Chinese air force and missile units that would take part in an invasion had improved to the point where they could 'switch from peacetime to war operations any time'.
Link >>>https://lnkd.in/epE_ri2X Source: FT
China's dominance in the global supply of rare earth elements (REEs) is a significant factor influencing various industries, from smartphones and electric vehicles to guided missiles and satellites.
Between 2020 and 2023, China supplied 70% of U.S. rare earth imports, establishing itself as the primary source. Following closely are Malaysia, Japan, and Estonia in the top four suppliers. Despite their name, rare earths are not scarce in the Earth's crust; the challenge lies in extracting them in concentrated amounts economically and sustainably. China plays a pivotal role in this scenario, producing approximately 90% of the world's refined rare earths. Its extensive capacity for separation and purification gives it a substantial influence over global supply chains. For instance, yttrium, crucial in radar systems, lasers, and television screens, saw 93% of its U.S. imports originating from China between 2020 and 2023. Other vital rare earths like Samarium, Gadolinium, Terbium, Dysprosium, Lutetium, and Scandium face similar supply concentration challenges. These elements are integral to military applications, electric motors, and cutting-edge electronics, with companies such as Lockheed Martin, Tesla, and Apple relying on them for their core products. Source: Elements
📢 CHINA SAYS U.S. DIALOGUE TO CONTINUE AS CHINA HINTS TRADE TALKS ARE ADVANCING - CNBC
The U.S. and China have agreed to maintain communication following a call between Chinese Vice Foreign Minister Ma Zhaoxu and U.S. Deputy Secretary of State Christopher Landau, according to a brief readout released by the Chinese Foreign Ministry on Friday. Both sides exchanged thoughts on crucial issues during the call on Thursday, the statement said, without elaborating. The U.S. Department of State issued a similar statement Thursday, briefly noting the consensus on the importance of the bilateral relationship and an agreement to keep open lines of communication. The statement came as Beijing and Washington continued to trade swipes at each other, despite the tariff de-escalation following a meeting between both sides in Switzerland earlier this month. Source: CNBC
What a wild chart...
Alibaba Revenue v. Stock Price Revenue: +1,521% Stock Price: +20% $BABA Source: FinChat @finchat_ioRevenue v. Stock Price Revenue: +1,521% Stock Price: +20% $BABA Source: FinChat @finchat_io
Retail sales rose 5.1% from a year earlier in April, MISSING analysts’ estimates of 5.5% growth, according to a Reuters poll
Sales had grown by 5.9% in the previous month. Industrial output grew 6.1% year on year in April, STRONGER than analysts’ expectations for a 5.5% rise, while slowing down from the 7.7% jump in March. Fixed-asset investment for the first four months this year, which includes property and infrastructure investment, expanded 4.0% from a year earlier. ➡️ As mentioned by Mo El Erian on X, the latest Chinese macro numbers illustrate a familiar pattern in the country’s economy: government measures often succeed in boosting industrial production, but tend to be less effective at stimulating household consumption Source: CNBC
The FT reports that a secret meeting between US and China which took place in IMF basement paved way for tariff deal seen on both sides as a victory 👇
The first meeting to break the US-China trade deadlock was held almost three weeks ago in the basement of the IMF headquarters, arranged under cover of secrecy. "US Treasury secretary Scott Bessent, who was attending the IMF spring meetings in Washington, met China’s finance minister Lan Fo’an to discuss the near complete breakdown in trade between the world’s two biggest economies, according to people familiar with the matter. The previously unreported encounter was the first high-level meeting between US and Chinese officials since Donald Trump’s inauguration and the launch of his tariff war. The Treasury declined to comment on the secret meeting. The talks culminated this weekend in Geneva with Bessent and He Lifeng, China’s vice-premier, agreeing a ceasefire that would slash respective tariffs by 115 percentage points for 90 days". Link to FT article >>> https://lnkd.in/e_a7Rcix
