MyStratWeekly – May 21st 2024

Topic of the week: The Green Energy War Has Begun!

• China has rapidly become a giant in green technology thanks to its globalized and competitive production chains, as well as strong national and international demand for sustainable technological solutions;
• This has raised fears among Americans and Europeans, as the automotive industry is a strategic economic sector;
• The new American trade sanctions are expected to have limited economic impact, but with a risk of distortions in the electric battery market;
• China is following in the footsteps of Japan in the 1980s by now targeting final demand rather than exports;
• The European Union, in trying to protect its manufacturing sector, risks penalizing other specific sectors that export to China;
• The emerging countries that have benefited from the redirection of FDI flows to bypass tariffs could be hurt.

Market review: Market optimism collides with international tensions

• US inflation eases to 3.4% amid disappointing retail sales;
• Chinese data show weak domestic demand;
• T-notes outperform Bunds;
• Stability in sovereign and credit spreads.

Chart of the week

Since 2020, the EU has been celebrating the European Month of Diversity every May. The European Commission annually calls on businesses and organizations to work towards diversity and inclusion in the workplace and society by organizing events and activities.

In light of this, Eurostat has recently published an infographic on employment inequalities in Europe. There is still much work to be done to reduce these inequalities. For instance, the employment rate for women is 10.2 percentage points lower than that of men. Additionally, the employment rate for foreign-born individuals is 10.8 percentage points lower than that of native-born individuals, and the employment rate for people with disabilities is 21.4 percentage points lower.