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china ave phoenix

World economy 22nd May 2020

China Chooses To Be Realistic And Refuses To Quantify Its 2020 Growth Target

China has decided that it will not set a target for economic growth for 2020, due to the uncertainty caused by the Covid-19 pandemic. This was announced by Chinese Premier Li Keqiang at the opening session of the National People’s Congress, the highest legislative body of the People’s Republic of China. The country will give priority to guaranteeing the population’s living standards, with job creation goals, reducing the unemployment rate to 6% and an inflation target of 3.5%.

Global Economy

World economy 20th May 2020

Developing Nations Face Multiple Shocks With Uneven Ammunition

Irina Topa-Serry (Senior Macro Economist AXA Investment Managers) | The COVID-19 crisis is currently unfolding in emerging markets (EM). So far, they appear relatively less affected than their advanced economy neighbours such as the Eurozone or the US. But for some, it may be because they are only just entering the acceleration phase of the epidemic. For others, it may be because lockdown measures were implemented at an early enough stage, as seen in Slovakia. On a hopeful note, it may also reflect the demographic structure of some developing countries. For instance, slightly more than half of Africa’s 1.3bn population is under 19 years of age, versus just a fifth of Europe’s 740m inhabitants. At the other end of the scale, a quarter of Europeans are above 60 versus a mere 5% of Africa’s population.

US jobs

World economy 20th May 2020

The US Labor Market In The Corona Crisis vs 2008’s Great Recession

Agnieszka Gehringer ( Flossbach Von Storch Research Institute) | The labor market consequences of the corona crisis have been unprecedented. Roughly 21,4 million jobs have been destroyed within only two months, almost erasing the 22,4 million jobs created after the Great Recession of 2008/09. By comparison, during the Great Recession 8,7 million jobs were destroyed within the 25 months between February 2008 and February 2010

Moderna vaccine

World economy 19th May 2020

US Biotech Moderna Could Be The First Company To Have A Vaccine against Covid-19

US Moderna Therapeutics has announced the first positive results (in its first phase) of its experimental Covid-19 vaccine. Early findings from a first human trial of the vaccine suggest that it may create an immune response. The objective of the trial, conducted in only 45 people, was to test the safety of three doses with two injections. The firm plans to make a $1.3 Bn capital increase in order to finance the manufacturing process of this potential vaccine at a 5% discount vs yesterday’s close.

sicilian mafia godfather

In the World, World economy, World politics 18th May 2020

Eating Alone

Keith Godfrey | “You eat alone, you choke” is an ancient proverb with origins lost in the mists of time. In Mafia circles it expresses their family centred, ruthless sense of unity and purpose and celebrates tight-knit self-propelling interest. And yet, as we know even in the best regulated Mafia families every now and then those interests can pull in different directions. When that happens, the family member breaking ranks is said to “eating alone”. The implication is that bad things will soon follow. And worst of all, whether from lack of protection or because of overzealous protection from outside parties, eating alone makes for bad business.

China proposes major antitrust law overhaul, curbing internet titans

World economy 18th May 2020

US-China Rhetoric Heating Up

Mathieu Racheter (Julius Baer) | President Trump recently urged to halt plans of the government’s main pension fund to invest in Chinese equities. While the implications for Chinese ADRs listed in the US should be fairly small, there is a risk that the administration will extend the restrictions to other US investors. We continue to view Chinese equities as a core holding and reiterate our strategic Overweight rating.

AI COVID 19

World economy 17th May 2020

How AI Is Being Used To Tackle Covid-19

Chris Gannatti (WisdomTree) |Artificial Intelligence (AI) is proliferating more widely than ever before, having the potential to influence many aspects of daily life. Crisis periods, like we have seen with the Covid-19 pandemic, are often catalysts for the deployment of new innovations and technologies more quickly. The power of AI is being harnessed to tackle the Covid-19 pandemic, whether that be to better understand the rate of infection or by tracing and quickly identifying infections.

forest

World economy 16th May 2020

Outlook For The Green Bond Market Looks Promising: €50 Bn Issued Since The Beginning Of The Year

Johann Plé ( AXA IM) | With almost €50 billion in green bond issues since the beginning of the year, the volume remains high. This can be explained by the balanced composition of the universe (50% credit and 50% sovereign and equivalent), which ensures continuity of supply whatever the context. Quasi-sovereign debt issues have thus taken over from the credit segment, whose issues have been bracketed in a particularly risk-averse environment.

GRÁFICO DEFINITIVO. Vidas vs Economía

World economy 15th May 2020

This Graphic Speaks Volumes

Do we save lives or do we save the economy? This is a false dilemma, according to Luis Huete, a lecturer at IESE Business School. The most successful countries at dealing with this health crisis are also the ones in the best position to restart their economies. And vice versa. This graphic speaks volumes.