Weekly News Summary for July 14 to July 20
Friday: July 14: China Invites Global Investors amid Economy Issues
Financial regulators from China invited several significant investors globally to a rare symposium next week. They plan to encourage foreigners to continue investing in their economy despite weakness and increasing geopolitical tensions. According to sources, the meeting will be held on Friday in Beijing.
The symposium will focus on the current situation of US dollar-denominated investment companies in China and the issues they are experiencing. The efforts were made due to warnings about a slower economic outlook in the Asian nation.
Monday: July 17: Global Rules Walked Out of Crypto Firms
On Monday, the G20’s Financial Stability Board reported that globally agreed rules left cryptocurrency firms, leaving them to introduce basic safeguards to avoid problems similar to the FTX exchange dilemma and other crypto issues. Final recommendations were published as requested by the G20 to monitor companies that trade crypto assets like bitcoin.
FTX’s collapse in November 2022 underlined vulnerabilities from crypto companies. The FSB mentioned that all countries are required to apply the recommendations, regardless if they are not watchdog members. They added that crypto asset players should stop operating outside the regulated perimeters or not comply with the established rules.
Tuesday: July 18: Cocoa Hits Highest Price in 12 Years
Cocoa prices hit their highest in New York in more than 12 years. A few weeks after, the chocolate-making raw material in London climbed to its highest after 46 years as traders and producers faced limited supplies. Its value in the Intercontinental Exchange in New York rose to $3,429.99 per metric ton.
Usually, cocoa production lowers in an El Niño year. It remains unclear how strong the weather event would be. But forecasters estimated a strong one, which could significantly impact the 2023/24 mid-crop and the 2024/25 main crop. Cocoa-producing areas in Africa will be mainly affected. Also, the outputs from the Ivory Coast were down by 4.00%, lower than the previous year.
Wednesday: July 19: Chip Industry Trading Restricted by the US
According to the Chinese Semiconductor Industry Association, the US government wants to restrict trade, threatening globalization on the semiconductor industry and consumer interests. The association also stated that any damage to the global supply chain could harm the economy.
The semiconductor industry in China is open to cooperating and will resume innovations. Moreover, the industry association’s comment came after the chip company executives in the US met with top Biden administration officials to work on the policy in China.
Thursday: July 20: Tesla to Continue Cutting Prices
Tesla CEO Elon Musk hinted at more price cuts on their electric vehicles due to unstable times, although his all-out price war on automaker competitors narrowed the company’s margins. Since late last year, the automaker has cut down prices many times in the US, China, and other markets while increasing discounts and some incentives to lessen inventory.
Furthermore, it attempted to shield against rivals and economic uncertainty. Musk stated that the global economy is always moving. Tesla, significantly flat in the after-hours session, declined by 5.00% after Musk’s remarks.