China financial press says China should be alert to the risks of a falling yuan

China Securities Journal with the piece, a note on China should be alert to risks regarding yuan depreciation.

Yuan has fallen in the past week or two (chart below is offshore yuan, CNH …  a rising USD/CNH is a depreciating CNH) but its difficult to think this has Chinese authorities too concerned, its barely retraced some of its 2020 gains.  Still, maybe its a signal the recent fall will not be allowed to accelerate.
China Securities Journal with the piece, a note on China should be alert to risks regarding yuan depreciation.

Semiconductor shortage is getting worse – new record high wait time for chips

Via a Bloomberg report on Tuesday US time, citing research by Susquehanna Financial Group:

Chip lead times, the gap between ordering a semiconductor and taking delivery
  • increased by seven days to 18 weeks in May from the previous month
  • gap is the longest wait time since the firm began tracking the data in 2017
  • gap is now more than four weeks longer than the previous peak in 2018
The generally accepted recipe for inflation (there are others) is:
  • a lot of money (talking to you, central banks… )
  • chasing too few products (chip shortage delaying production)
Maybe transitory inflation is going to take a wee bit longer to be, you know, transitory, if this ‘gap’ data is correct.
The article does differentiate between products, some of which are seeing shrinking gaps, such as automotive chips. And, there is more detail also, link here if you can access it (Bloomberg may be gated)
TSMC is pumping up the volume as best it can
Via a Bloomberg report on Tuesday US time, citing research by Susquehanna Financial Group:

White House says Powell’s testimony shows Biden’s economic plan is working

A statement from the White House:

  • The testimony of Federal Reserve Chair Powell shows that Biden’s economic plan is working
  • Says does not comment on Federal Reserve monetary policy decisions
Wow.
Initial thought: “Well, they would say that, wouldn’t they?”
Thought 2: “Maybe the WH won’t comment on Fed policy, but economic Headkicker in Chief, US Treasury Sec. Janet Yellen, certainly will if need be.”
janet yellen laugh

ICYMI – PayPal and Visa have invested US$300m into Blockchain Capital’s fundraising

Blockchain Capital is a venture capital firm that focuses on … have a guess … blockchain (and cryptocurrency).

  • Paypal and Visa investment is into B’chain’ Capital’s latest fund.
Paypal statement:
  • PayPal is committed to fostering an ecosystem of companies making digital currencies more accessible, useful and secure
Visa says
  •  “We’re focused on enhancing all forms of money movement, whether on the Visa network, or beyond.”
More support for the increasing institutional interest in blockchain technology.
Meanwhile leading crypto had a wild ride. the chatter of a support level around $30K turned out to be garbage, given the drop under $29K but on the bright side at least it bounced! Quite impressively bounced too:
bitcoin chart paypal visa news

NASDAQ index closes at a record high

Major indices higher. S&P falls short of it record high

The NASDAQ index is closing at a record high level. The new intraday all time high price reached 14269.77.

The S&P index got to within two points of its all-time record high at 4257.11. The high price reached 4255.84.
A look at the closing levels shows:

  • S&P index rose 21.67 points or 0.51% at 4246.46
  • NASDAQ index rose 111.79 points or 0.79% at 14253.27
  • Dow industrial average rose 68.74 points or 0.20% at 33945.71
  • Russell 2000 index rose 9.85 points or 0.43% at 2295.95
IN the Dow 30, the biggest winners for the day include:
  • Nike, +1.86%
  • Home Depot, +1.65%
  • Apple, +1.26%
  • Microsoft, +1.1%
  • Visa, +0.69%
The biggest losers of the Dow 30 are:
  • Merck, -0.76%
  • Boeing, -0.62%
  • Salesforce, -0.58%
  • Walgreens Boots, -0.31%
  • Disney, -0.26%
Meme stocks were also on the up and up today:
  • Express, +11.345
  • GameStop, +10.05%
  • Koss, +5.27%,
  • AMC, +4.65%
  • Blackberry, +4.61%
  • Bed Bath and Beyond, +3.5%
  • DoorDash, +3.33%
Other big winners include:
  • Twitter, +2.93%
  • NVIDIA, +2.55%
  • Netflix, +2.35%
  • Facebook, +2.05%

European indices are closing the session mixed

Italy’s FTSE MIB lower. Spain’s ibex unchanged

The major European indices are closing the session mixed. The Italy’s FTSE MIB is lower. Spain’s Ibex is unchanged.  Germany, France, UK are higher.

The provisional closes are showing:
  • German DAX, +0.3%
  • France’s CAC, +0.3%
  • UK’s FTSE 100, +0.5%
  • Italy’s FTSE MIB, -0.2%
  • Spain’s Ibex, unchanged
In the European debt market, the benchmark 10 year yields are all higher with Italy’s yields up the most at 2.4 basis points.
Italy's FTSE MIB lower. Spain's ibex unchanged_