The Fed now owns a total of 22,913 different securities according to Bloomberg. It is the world’s biggest investor
Archives of “August 2020” month
rssChina PMIs (August) Manufacturing 51.0 (expected 51.2) Non-manufacturing 55.2 (expected 54.2)
These are the official PMIs, the unofficial Caixin Markit PMIs will follow later ion the week.
For August:
Manufacturing 51.0
- expected 51.2, prior 51.1
Non-manufacturing 55.2
- expected 54.2, prior 54.2
Composite 54.5
- prior 54.1
While manufacturing is a touch softer services are gaining, a positive sign for the domestic economy.
Data from China’s National Bureau of Statistics and China Federation of Logistics and Purchasing.
Apple’s market capitalization is roughly 3.5 times the size of the entire precious metals industry.
The US core inflation rate just had its biggest monthly increase in nearly 30 years.
Four of China’s five largest state-owned banks have increased bad debt provisions
This via Reuters over the weekend
- Four of China’s five largest state-owned banks said they have increased their provisions against bad debt
- Bracing for future losses due to the impact of the global coronavirus pandemic
- All five reported their biggest profit falls in at least a decade and an increase in soured loans when announcing their half-year results on Sunday and last week
Coming up later, PMIs from China
Here are the two frontrunners to be next PM of Japan
Japanese Prime Minister Abe Shinzo is stepping down due to health concerns
- the end of an era for Japanese politics
Yomiuri (Japanese media) nominate the two frontrunners as new PM:
- Foreign Minister Fumio Kishida
- Cabinet Secretary Yoshihide Suga
Suga:
Also in the mix are former Defense Minister Shigeru Ishiba and former Internal Affairs and Communications Minister Seiko Noda.
Abe steps down on or around September 15.
Japan press – “Abenomics here to stay”
Justin had the news on Friday of the imminent retirement of Japanese Prime Minister Abe.
- the end of an era for Japanese politics
Abe will not be taking Abenomics with him though, Japan Times:
- economists say Japan’s next leader will likely maintain he basic Abenomics framework
- “For sure, markets will be watching the continuity. I think many are assuming that things won’t change a lot, but the new prime minister will need to clearly explain that,” said Daiju Aoki, chief investment officer at UBS Wealth Management Japan.
Shunsuke Kobayashi, chief economist at Mizuho Securities:
- “The government will need to continue to deal with the pandemic and do what’s necessary to contain it while limiting the economic damage … whoever becomes the prime minister, he or she will have to face the same issue and take the same necessary steps”
ps. Much of Abenomics boiled down to massive policy easing from the BOJ. This is not gonna change any time soon.
Abe was PM from 2006 to 2007 and then again since 2012. He will step down on or around September 15. He is the longest-serving Prime Minister in Japanese history. Get well soon, and enjoy your retirement sir!
Sunday Times reports the UK “plans for a £30bn tax raid on the wealthy”
Monday 31 August 2020 is a holiday in the UK, a good time for getting this sort of bad news dribbling out.
UK press with the report,
- Chancellor Rishi Sunak has his Treasury officials drawing up plans for a £30bn tax raid on the wealthy, businesses, pensions and foreign aid
- proposals would be part of the budget in November
- planning to raise capital gains tax
- and corporation tax (from 19% to 24%)
UK Times link is here (may be gated).
ps. Reuters report here is ungated
France’s health ministry says the “exponential” rise in new coronavirus cases is “very worrying”
Eyes on France where Friday saw 7000+ new confirmed COVID-19 cases and Saturday 5,000+
The health ministry says:
- “In mainland France, the progression of the COVID-19 epidemic is exponential. The strong growth dynamics of transmission is very worrying,”
Via Reuters
On Friday compulsory mask-wearing was introduced to Paris. Efforts are being made to avoid another harsh economic lockdown.
Happy 90th birthday to Warren Buffett
The Oracle of Omaha turns 90 today
Warren Buffet celebrates his 90th birthday today as the world’s sixth-richest man. At $82.1 billion, he’s done well for himself.
But what Jason Zweig notes in the WSJ is that the genesis of his genius was in playing the long game and starting as early as possible.
Around the age of 10, he read a book about how to make $1,000 and intuitively grasped the importance of time. In five years, $1,000 earning 10% would be worth more than $1,600; 10 years of 10% growth would turn it into nearly $2,600; in 25 years, it would amount to more than $10,800; in 50 years, it would compound to almost $117,400.
Today’s markets are as get-rich-quick as ever but the long game always wins.