Aug 13 2021 0
New reaction from the US towards China. Asian stocks weaken compared to Europe. A new pizza is born in the pandemic. That's what we are going to cover in today's news report. These are very important events that can make the market go crazy.
- Many analysts warn the dollar's decline could be short-lived.
- The International Energy Agency cut its oil demand outlook for the year due to the spread of the Delta variant globally.
- US July PPI at 7.8% was slightly higher than expected.
- Initial US jobless claims at 375k, equal to estimates.
New force for China
The CIA is weighing proposals to create an independent "Mission Center for China" in an effort to gain a deeper understanding of the United States' top strategic adversary. The proposal, part of a broader assessment of the organization's capabilities in China by CIA Director William Burns, would raise the focus on China. Within the intelligence apparatus, a separate China center would make it easier to secure staffing, funding, and high-level attention for China-related operations. Elsewhere in the United States, the head of the Federal Trade Commission said antitrust enforcement agencies should prevent mergers that threaten competition more often. And the US is sending about 3,000 US troops to Kabul to help evacuate more diplomats from the US embassy.
A weak mind
Asian stocks look set to be quiet as the spread of the Delta variant and China's regulatory restrictions weigh on sentiment, although Wall Street saw another record close. Futures markets rose in Japan and Australia but fell in Hong Kong. US stock futures remained flat. Earlier, the S&P 500 hit new highs, while the tech-biased Nasdaq 100 also climbed. Yields on 10-year Treasuries hit a one-month high amid a dull auction and data showing price pressures and a labor market recovery. One measure of the dollar has rallied. Oil fell as traders grapple with the impact of the Delta variant on demand.
A drop in population
Hong Kong's population has shrunk significantly over the past year as residents left the city following the implementation of the National Security Law to curb protest and dissent. The city had 89,200 residents leave in the year to the end of June 2021, contributing to a 1.2 percent drop in the total population to about 7.39 million. The data show that Hong Kong's population has declined in both 2019-20 and 2020-21, after at least a decade of steady growth since mid-2010, according to data from the Ministry of Home Affairs, about 7,200 Hong Kongers. Hong Kong nationals (overseas) passport holders and their dependents were granted permission to settle in the UK during the first quarter of the year, as part of the pathway to citizenship offered by government there.
China's regulatory crackdown is forcing tutors to come under scrutiny, making their services even more expensive - and more selective. A sweeping industry overhaul announced last month has left a loophole, with companies offering group classes to middle-class families now waning, regulations aimed at fixing the student balance is likely to further unbalance. Meanwhile, at a time when much of China's corporate world is under intense scrutiny, Alibaba will launch a hotline and set up a team dedicated to investigating sexual harassment complaints. The moves come after an employee accused her manager of pedophilia and sparked a debate about misconduct in China's tech industry.
Pizza born from data
In Taiwan, big data is helping to create your pizza, where the latest non-traditional topping features a mixture of pig blood cake and northern duck egg. As demand for Western fast food exploded during Taiwan's recent Covid-19 lockdown, Pizza Hut searched social media posts for the most talked about foods and created word clouds of potential new materials. The company says the new topping has broken Pizza Hut's previous sales record in Taiwan thanks to a durian pizza in 2019. The company says, a pig blood pizza is bought every 8 seconds, and the product sold out just four days after its launch in late June.