Morning Brief: Pelosi’s Taiwan Trip Raises Angst, China’s Economy Deteriorated Further in July
Americas
Economic Indicators and Prospects
Housing
Construction Spending Decreased 1.1% in June https://t.co/Gm8DRZ3QaM pic.twitter.com/BWzD5idWBm
— Bill McBride (@calculatedrisk) August 1, 2022
Housing Inventory August 1st Update: Up 32.3% Year-over-year https://t.co/wxzeMGbXmi Here are the same week inventory changes for the last four years:
— Bill McBride (@calculatedrisk) August 1, 2022
2022: 13.4K
2021: 4.4K
2020: -13.4K
2019: 2.9K pic.twitter.com/uUEGFEfznZ
Fiscal Policy
Senator Joe Manchin secures commitment from President Biden, Schumer and Pelosi to complete Mountain Valley Pipeline …will, “unlock 2 billion cubic feet of natural gas per day.” https://t.co/rk2zPETgIz
— FxMacro (@fxmacro) August 1, 2022
US Treasury Financing Estimates For Q3 https://t.co/EG1r1JIo9j
— LiveSquawk (@LiveSquawk) August 1, 2022
Trade, Supply Chain and Geopolitics
U.S. Considers Crackdown On Memory Chip Makers In China – RTRS https://t.co/ycNQ7k7ED5
— LiveSquawk (@LiveSquawk) August 1, 2022
Asia
Covid-19
China’s latest Covid-19 outbreak has stabilized, with cases in Shanghai holding at zero for the second day in a row and the flareup in Shenzhen seemingly under control https://t.co/BIUVApVB5n
— Bloomberg (@business) August 2, 2022
Economic Indicators and Prospects
Housing
A divide in funding access is widening among Chinese developers, as most struggle to raise cash in the domestic bond market while mostly state-backed builders manage to borrow at the lowest cost in 12 years https://t.co/lX5WsPRUN8
— Bloomberg (@business) August 2, 2022
Monetary Policy
Australia’s central bank raises interest rates by a half-percentage point for a third consecutive month, increasing the cash rate to 1.85% https://t.co/g6jIMMi7LJ
— Bloomberg Economics (@economics) August 2, 2022
Fiscal Policy
Japan is set to raise its minimum wage by the most on record, a boost for low-income households as they try to cope with the increasing costs of living https://t.co/ZBFHMLVZ9l
— Bloomberg Economics (@economics) August 2, 2022
Trade, Supply Chain and Geopolitics
Based on what I know, in response to Pelosi's possible visit to Taiwan, Beijing has formulated a series of countermeasures, including military actions.
— Hu Xijin 胡锡进 (@HuXijin_GT) August 2, 2022
#China's General Administration of Customs suspended food imports from more than 100 food producers from Taiwan yesterday, which has been interpreted as an economic response to Pelosi's Taiwan visit attempt.-UDNhttps://t.co/GURF9tFFBO
— CN Wire (@Sino_Market) August 2, 2022
Europe
Economic Indicators and Prospects
UK house prices barely rose in July, indicating the property market is cooling in response to the worsening cost of living crisis https://t.co/z03dmjika7 pic.twitter.com/TGLM61oyEL
— Zoe Schneeweiss (@ZSchneeweiss) August 2, 2022
Monetary Policy
The BOE is forecast to deliver its first half-point rate hike in 27 years (via @PhilAldrick & @ZeinabDiouf) https://t.co/FbohuqSKOg
— Bloomberg Economics (@economics) August 1, 2022
Energy
BREAKING: Germany 1-year forward baseload electricity surges >€400 per MWh for the first time ever.
— Javier Blas (@JavierBlas) August 2, 2022
We are truly into crunching territory for the country's energy-intensive manufacturing industry.
The current price is ~1,000% higher than the €41.1 per MWh 2010-2020 average.
Munich restarts oil-fired power as surging gas batters Germany https://t.co/KA5E62tnAb via @RefinedRachel pic.twitter.com/0UY8i3Xiy6
— Zoe Schneeweiss (@ZSchneeweiss) August 1, 2022
Politics
What will be different about Italy’s snap elections https://t.co/hSXKJ5ZVGj via @marco_bertacche pic.twitter.com/qrVSkC9aPY
— Zoe Schneeweiss (@ZSchneeweiss) August 2, 2022
Trade, Supply Chain and Geopolitics
British MPs plan visit to Taiwan as tension with China simmers https://t.co/h7rycAFe5a
— The Guardian (@guardian) August 1, 2022
Ukraine Warns Grain Exports Will Take ‘Months’ To Reach Pre-War Levels – FT https://t.co/F55YarKPve
— LiveSquawk (@LiveSquawk) August 2, 2022