Read our market review and find out all about our theme of the week in MyStratWeekly and its podcast with our experts Axel Botte, Aline Goupil-Raguénès and Zouhoure Bousbih.
Listen to Axel Botte's and Zouhoure Bousbih's podcast (in French only)
Podcast slides (in French only)
Download the Podcast slides (in French only)Topic of the week: China has crossed the threshold of sophistication !
- China is the world’s largest manufacturing powerhouse;
- However, it is in sophisticated and technological products that China has become competitive;
- China gained market share in the automotive sector, including electric vehicles;
- This is thanks in particular to the integration of ASEAN in its value chain;
- Labor-intensive production chains are moving out of China to ASEAN, while high value-added chains remain in China;
- China continues to strengthen its integration into the global value chain by expanding free trade agreements.
Market review: About-face
- Central banks ever more cautious about inflation;
- Yield curves flatten as T-note hovers about 4.30%;
- Nvidia earnings spark new equity strength;
- Market environment still supportive of risky assets..
Axel Botte's and Zouhoure Bousbih's podcast
- Topic of the week: Rates, equities and credit in the euro area
- Theme: China’s Industrial Policy: Upscaling
Chart of the week
The Nikkei 225 index closed on Thursday at 39,098.68 points, up 2.2%. This is a historic record which finally erases the peak of the speculative bubble recorded at the end of 1989.
Japanese growth in the 1980s had generated excessive expectations regarding the value of securities. The bursting of this speculative bubble, stock market but especially real estate, is the trigger for the long period of stagnation which has marked Japan since the mid-1990s.
This stock market signal perhaps validates the end of purgatory for the Japanese economy.
Figure of the week
This is the number of Fed rate cuts now anticipated by the markets. These three or four gestures compare to almost seven reductions planned on January 12 by the money markets.
