Summary:
Trump-Kim Summit,
World Cup Opening,
Federal Interest Rate Hike,
US high-tech Stocks hit new record,
China A-Share hit record lows,
Global GDP glimpse.
1. The meaning of the Summit is that, Trump became president of the United States who achieved landmark results after World War II in US president history, both in politics and economy, getting more money back to US, greatly enhancing influence in global politics, consolidating the regime, and probably continuing the presidency's career. Trump keeps on breaking expectations to all people.
2. The difference between the World Cup and Olympics in economic phenomenon is that, football is broader and more entertaining, and Olympics are more political especially in the an institutionalized country. Worldwide events are important to boost a country's overall influence, building more stadiums could have a short-term effect on local economy, which would quickly plunge into a debt crisis, these facilities don't have a continuing economic dimension, and infrastructure suffers if it overtakes revenues, such as the 2014 World Cup in Brazil and the Beijing Olympics in 2008, so as now the World Cup holding in Russia which is getting weak in Federal Budget with low Oil Price, anyway it's getting higher than last year.
3. The US Federal's monetary policy meeting decided to raise interest rates by 25 basic points to 1.50-1.75 per cent of the Fed funds target rate, in line with market expectations. The rate is expected to rise twice again in 2018 probably.
Accelerating the return of global capital to the US under the interest hike cycle means accelerating emerging market decline, some countryside are even worse off than the 1998 financial crisis, when South Korea, Thailand, and now Argentina and Venezuela. China's domestic currency policy control and real estate policies have looked all the money away in real estate, making it harder for money to flow to the Unites States. Low quality asset are hurting Chinese citizens, but this can't be measured in terms of economics alone.
4. Compared to the DOT COM bubble of 2000, high tech companies such as the internet, cloud computing and biomedicine are trading at record highs now, and behind the dollar index cycle, it's far from the sky. While markets are expected to collapse in the next two years, debt is already running so high, and the rerun of emerging countries' money flows back to Federal Reserve os trying to make up for the excessive debt. The continued improvement in US economic data has further accelerated the return of capital, which has been destroyed badly in emerging countries. And high-tech companies is the most watched.
5. Unfortunately, the Chinese stock market, A-share, has few new capital inflow, but the are constantly being cashed out, in the majority of shareholders reducing the holdings. Market sentiment is so bad and the investment confidence is poor. The so-called Unicorn Return talk a lot of money, start-up small-cap companies will further lose their financing capacity, it's all about the politics.
Chinese stock market, where the gambling characteristics are so obvious, there are fewer and fewer topics of value investment. High-Quality stocks are rationed, while bad companies flood in the market. It's a special financing market. No new capital plus poor market confidence, IS Equal to Sleep MORE.
6. The GDP of China will surpass the EURO-Area's early next year, which is 6.8% vs 2.5%, and it keeps moving, while Vietnam is 7.38%, Ireland is 8.4%. Vietnam takes place some manufacture from China as the low price human resources, and Ireland get high economic growth as the investment in Long-term research in pharmaceutical and IT industry from 2009 and explode in 2015, instead of real estate investment before 2007, likely to be the result of the transfer of patented technology from some pharmaceutical and IT giants to Ireland.
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