Jul 24 2020 0
This is the most important news of the day that can impact the market heavily.
US fights China
Secretary of State Michael Pompeo sees Chinese leaders as tyrants wishing for global hegemony. Yesterday Pompeo said: "President Xi Jinping will not be able to mistreat inside and outside of China if we do not let him do that. Protecting our freedom from the Chinese Communist Party is the mission of our time ".
Mr. Pompeo sees the war with China as a survival struggle between right and wrong, reminiscent of the Soviet-US standoff in the Cold War. Pompeo said: "If we now kneel before them, then the descendants of our children and grandchildren may suffer the mercy of the Chinese Communist Party, whose actions are the main challenge to the free world". Meanwhile in China, President Xi Jinping is preparing for a leadership competition in 2022, when a meeting every five years is scheduled to take place to pick the top leaders of the Communist Party.
A plunge in the market
Asian stocks are poised to follow US stocks down after a sudden rise in unemployment reports, raising concerns that the economic recovery has stalled. Treasury bonds have risen. The futures market in Hong Kong and Australia fell. Earlier, the S&P 500 index fell from its 4-month high, led by losses in technology companies and non-essential consumer goods companies. The Nasdaq 100 dropped to a 2-week low, obliterating Monday's gain. In other developments, the yield of 10-year Treasury Bonds fell to 0.58%. Crude oil prices fell, while precious metals continued a series of terrible increases that brought the price of gold and silver to the highest level in many years.
Hong Kong continues to fall
Hong Kong's economy cannot seem to rest. Quickly showing signs of recovery in recent months from the deepest recession record, the Asian financial center is preparing for its most rigorous test as a virus outbreak recurs in conjunction with Political and financial prospects are increasingly uncertain. Hong Kong is faced with fundamental questions about its long-term role as an international financial center, amid signs that technology companies are abandoning the city and international companies are abandoning their once popular legal system after being subject to national security laws. And yet, the prospects for immediate growth worsen as the number of coronavirus infections spikes. On July 29, the government will report economic growth data in the second quarter: Economists forecast a contraction rate from last year's growth of 8.7%, almost equal to the decline of 8.9% of the record was recorded in the first quarter.
Rise of the remote healthcare service
The overstressed health services and social distress measures to combat coronavirus are driving telemetry across Asia - a phenomenon that will probably continue even after the pandemic has been controlled. Economies with world-class technology such as South Korea, or with low healthcare costs and a diverse team of doctors such as India, are exploring digital health possibilities at the time. Points patients may hesitate to visit clinics for fear of being infected by the virus. This potential is huge: the region's remote market is expected to grow from $8.5 billion this year to $22.5 billion by 2025, according to the Market Data Forecast. While this is currently primarily a domestic phenomenon, the increasing acceptance of telemedicine advice is improving the health care capabilities of underserved communities across Asia.
TikTok in danger
Zhang Yiming is a little-known Chinese businessman who built TikTok into one of the most promising franchise brands on the internet. Now, he is under pressure to save his business from the threats of the Trump administration. So far, he has been trying to build TikTok operations in the United States, hire an American executive and reassure regulators that user data will not be shared outside the country. TikTok has also stepped up lobbying in Washington, D.C. and signaled that 10,000 jobs will be created in the country. However, that is not enough.
This month, Donald Trump said he would consider banning this app in the United States. A decision is likely to be made before the November election, so time seems to be running out for Zhang. The President may add Tiktok to the "entity list" (identifying organizations and individuals believed to be involved or engaged in activities that are contrary to national security or US foreign interests), forcing Apple and Google to remove the service from their app stores.