China’s Economy Is Here To Stay
It is no surprise that there is a lot going on between China and US. However, they are saying that despite what is going on, China’s economy is here to stay.
According to Jing Ulrich, MD and VC of Asia Pacific(JP Morgan Chase), firms are expecting China’s GDP growth to reduce from about 6.6% to 6.1% this year.
Moreover, Ulrich is also suggesting that they will be laying out a new framework for negotiations in order to meet the G-20 summit.
Additionally, China is still currently the fastest growing global economy in the world. Moreover, according to Jing Ulrich, MD and VC for Asia Pacific (JP Morgan Chase), the most important thing to realise here is that China’s economy is only bending but it is not breaking.
On the other hand, according to reports, S&P 500 closed higher last week and more than 10% from an all time high. On Monday, the index recovered from some gains but it stayed a little unchanged for the rest of the year.
Additionally, Shanghai composite was one of the worst performing stock index of the world this year. It went into the bear market territory and dropped from a 20% high in June
On the other hand, it was also said that if growth rate is higher than 6%, it will mark one of the fastest and highest growths in the world in China. Additionally, it will also be the highest growing economy in the world.
During last week, the S&P 500 closed last week and it was in correction territory. It was above 10% and higher than an all time high.
Nonetheless, it is true that trade tensions between US and China are increasing and they are not going anywhere. Both countries are leading the way and have made it clear that they are doing a tit-for-tat for tariffs worth billion of dollars.
Tariffs: What’s Ahead
While these tariffs are worth a lot and in fact, worth billions of dollars, they are being implemented by both countries. This shows that both countries, China and US, are not changing their strategies or plans at all. However, it is not that these changes are going to affect both economies; make or break them. Moreover, while that is going to happen soon, at the same time, they are not going to affect China’s economy adversely, especially not in the sense of breaking it.
In other news, Nigeria will be losing $6 billion in terms of corrupt oil deal with Eni and Shell alike. Additionally both Shell and Eni were also accused of Bribery last year and over a $1.3 billion payment was lost.
The deal between Shell and Eni broke recently and the African nation lost about $6 in revenue.
On the other hand, Microsoft is worth $817.3 billion, as it settled at this on Monday’s close.
The takeaway here is that while the ongoing trade war between China and US is detrimental to global stocks and trade, China’s economy is here to stay and it is not going anywhere, anytime soon.
Stay tuned for more updates at The Tradable.