yaso711

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Japan plans to seek "tens of billions of dollars in subsidies" for semiconductor projects! TSMC and Rapidus are expected to benefit from this

Tickmill Group

A key lawmaker from Japan's ruling party said Japan plans to secure an additional 1.49 trillion yen ($10 billion) in subsidies for two key semiconductor projects.

Yoshihiro Seki, chairman of Japan's Liberal Democratic Party's Semiconductor Strategy Promotion Parliamentarian Alliance, revealed in an interview on Wednesday (October 25) that the government will allocate up to 900 billion yen for Taiwan Semiconductor Manufacturing Company (TSMC)'s second factory in Kumamoto, southwest Japan; At the same time, 590 billion yen will be allocated for Japanese local chip company Rapidus.

He also said that the Ministry of Economy, Trade and Industry has included these subsidies as part of the supplementary budget request for this fiscal year.

As with other budget items in Japan, the final amount may still change through discussions with the Finance Ministry.

This move shows that Japan is moving towards key technology fields such as semiconductors. Just this Monday, Japanese Prime Minister Fumio Kishida promised again in his speech that he would work hard to strengthen the supply chain related to semiconductors and decarbonization technologies; on Tuesday, Japanese Minister of Economy, Trade and Industry Yasunari Nishimura also expressed the hope that he would not fall into protectionism. Establish a supply chain and procurement framework.

Subsidy higher than normal level

It is understood that the second factory built by TSMC in Kumamoto City is expected to cost about 2 trillion yen. After the factory is completed, it is expected to produce 6-12 nanometer logic chips. These chips will be used in products such as electric vehicles. This factory may become an important semiconductor production base in Japan in the future.

Seki said that generally speaking, for such projects, government subsidies usually account for about one-third of the cost, and the planned 900 billion yen means that the government will bear more than one-third of the cost of TSMC's new factory.

To justify higher-than-usual subsidies for TSMC plants, Seki said the government would press Japan to provide additional incentives in exchange for TSMC's local help. This could include supporting TSMC in training Japanese engineers and conducting joint research with Japanese companies.

It is reported that Japan has currently promised to bear about half of the cost of TSMC’s first factory in Kumamoto, a subsidy of approximately 476 billion yen. In addition, the Japanese government has pledged to invest 330 billion yen in Rapidus, which aims to produce 2-nanometer logic chips in northern Hokkaido.Tickmill

#japan #Technology Finance

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Current status of China’s private equity market

Spreadex Ltd

In recent years, China's private equity (PE) market has experienced significant growth and transformation, becoming an important part of the country's financial landscape. This article will provide an overview of the current status of China's private equity market, including its growth drivers, regulatory environment and investment trends.

Market Growth and Size: China's private equity market has experienced significant growth, driven by factors such as economic development, entrepreneurship and increased investor interest in alternative investments. According to industry reports, the total amount of private equity transactions in China has hit new highs in recent years, reflecting the size and potential of the market.

Regulatory environment: The regulatory environment for private equity in China has evolved to support market development and protect investor interests. Regulatory agencies such as the China Securities Regulatory Commission have taken measures to increase transparency, improve corporate governance and standardize fundraising activities. These regulations aim to strike a balance between promoting market growth and reducing the risks associated with private equity investments.

Investment focus: China's private equity investments are diversified and cover a wide range of fields, including technology, healthcare, consumer goods, financial services, etc. The technology sector in particular has attracted widespread attention, with investments in areas such as e-commerce, artificial intelligence and fintech. In addition, the healthcare industry has also seen significant growth due to China's aging population and increasing demand for quality medical services.

Venture capital and growth capital: Venture capital (VC) and growth capital investments have always dominated the Chinese private equity market. Venture capital focuses on early-stage companies with high growth potential, while growth capital investing targets more mature companies seeking capital for expansion or strategic initiatives. These two types of investments play a vital role in supporting China's entrepreneurship, innovation and economic development.

Spread EX

Government support: The Chinese government actively supports the development of the private equity market through various initiatives. These include the establishment of government-backed funds, tax incentives for investors and policies to attract foreign investment. Government support helps create a favorable investment environment and promotes cooperation between domestic and foreign investors.

Challenges and Risks: Despite the growth and potential of the Chinese private equity market, investors should consider challenges and risks. These include regulatory uncertainty, market volatility, corporate governance issues and the possibility of an economic slowdown. Additionally, the competitive landscape and the need for thorough due diligence pose challenges for investors seeking attractive investment opportunities.

International participation: China’s private equity market has attracted strong interest from international investors. Foreign private equity firms, institutional investors and sovereign wealth funds have been actively participating in the market, seeking exposure to China's growing economy and investment opportunities. The inclusion of China A-shares in global indices further facilitates international participation in China’s private equity market.

In summary, China's private equity market has experienced significant growth and transformation, driven by economic development, regulatory reform and investor interest in alternative investments. This market offers diversified investment opportunities across industries, with a focus on technology and healthcare. Despite challenges and risks, government support and market potential continue to attract domestic and foreign investors to the Chinese private equity market.Spread EX

#china

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How to judge whether newly listed stocks will rise or fall

TradeMax Global Markets

Investing in newly listed stocks can be both exciting and challenging. Determining whether a stock's price will rise or fall requires careful analysis and consideration of a variety of factors. While it's impossible to accurately predict stock price movements, there are several key indicators and strategies investors can use to make informed judgments. In this article, we'll look at some ways to evaluate the potential direction of a newly listed stock's price.

Fundamental Analysis: Fundamental analysis involves evaluating a company's financial health, industry position, and growth prospects. By examining factors such as revenue growth, profitability, debt levels, competitive advantages, and management quality, investors can gain insight into a company's potential for future success. Strong fundamentals, such as rising revenue and earnings, a strong balance sheet, and a competitive market position, may indicate a greater likelihood of higher stock prices.

Industry and market analysis: It is crucial to evaluate the industry and market conditions in which newly listed stocks operate. Analyze the industry's growth potential, competitive landscape, and any regulatory or technological changes that may affect the company's prospects. Additionally, consider broader market trends and economic conditions that may affect the stock's performance. Favorable industry prospects and favorable market conditions may increase the chances of stock price appreciation.

Technical Analysis: Technical analysis involves studying historical price patterns, trading volume, and other market indicators to identify underlying trends and patterns. Chart analysis, moving averages, and momentum indicators can provide insights into stock price movements. By identifying support and resistance levels, trend reversals, and other technical signals, investors can predict a stock's future direction. However, it should be noted that technical analysis is subjective and should be used in conjunction with other analysis methods.

Investor Sentiment: Investor sentiment plays an important role in stock price movements, especially for newly listed stocks. Assessing market sentiment through surveys, news sentiment analysis, and social media sentiment can provide insight into how investors view a stock. Positive sentiment, such as high demand during an IPO or positive media coverage, may indicate a higher likelihood of a stock price increase. Conversely, negative emotions or doubts may indicate a potential decline.

TMGM

Analyst recommendations: Pay attention to analyst recommendations and target prices provided by well-known financial institutions. Analysts often perform in-depth research and analysis on newly public stocks, providing insight into the company's prospects and potential price targets. While it's important to conduct independent research, analyst recommendations can serve as a valuable reference point when evaluating a stock's potential direction.

Risk Assessment: Consider the risks associated with newly listed stocks. Evaluate factors such as market competition, regulatory risks, potential disruptions, and the company's ability to execute its business strategy. Understanding and managing risk can help investors make more informed judgments about a stock's potential to rise or fall in price.

It's important to remember that investing in stocks, especially newly listed stocks, carries inherent risks. No analytical method can guarantee accurate prediction of stock price movements. Diversification, in-depth research, and a long-term investment perspective are critical to successful investing. Additionally, consulting a financial advisor or professional can provide valuable guidance on investment decisions.TMGM

#stock

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Nasdaq Stock Market: The Center for Technological Innovation

TradeMax Global Markets

The Nasdaq Stock Market, often referred to simply as Nasdaq, is one of the world's leading stock exchanges, known for its focus on technology and growth companies. It has become synonymous with innovation and has played a key role in shaping the global technology landscape. In this article, we will explore the history, characteristics, and significance of the Nasdaq stock market.

History: Founded in 1971, the Nasdaq Stock Market was the world's first electronic stock exchange. It was created by the National Association of Securities Dealers (NASD) to provide a platform for trading stocks of smaller, technology-focused companies. Over the years, Nasdaq has grown in influence and its offerings have expanded to include companies in a variety of sectors, including technology, biotechnology, telecommunications and finance.

Features: One of the distinctive features of the Nasdaq stock market is its electronic trading system. Unlike traditional exchanges that rely on physical trading floors, Nasdaq operates entirely electronically. This enables faster and more efficient transactions, with transactions executed within milliseconds. The electronic nature of Nasdaq makes it the first choice for technology companies and facilitates the listing of numerous startups and high-growth companies.

Another distinguishing feature of Nasdaq is its market structure. It operates as a dealer's market, with market makers facilitating the buying and selling of securities. Market makers are responsible for maintaining liquidity by constantly quoting bid and ask prices for specific stocks. This structure improves the efficiency and liquidity of the market, attracting both individual and institutional investors.

TMGM

Technology Focus: Nasdaq's reputation as a center for technology innovation stems from its emphasis on listing and trading technology-related companies. It has played a major role in the initial public offerings (IPOs) of many prominent tech giants, including Microsoft, Apple, Amazon and Google. Nasdaq's focus on technology has also made it the exchange of choice for emerging industries such as biotechnology, clean energy and financial technology.

Listing Requirements: To be listed on Nasdaq, a company must meet certain requirements, including financial performance, market capitalization and corporate governance standards. Nasdaq has different listing levels, with the Nasdaq Global Select Market being the highest level. Companies listed on Nasdaq gain access to a global investor base and increased visibility, which helps attract capital and drive growth.

Significance: The Nasdaq stock market is widely viewed as a barometer of technology industry performance and is closely watched by investors, analysts and the media. The Nasdaq Composite Index tracks the performance of all common stocks listed on Nasdaq and is often used to gauge the health of the technology industry. Changes in the Nasdaq Composite Index can have a significant impact on investor sentiment and market trends, reflecting the changing dynamics of the technology industry.

In summary, the Nasdaq stock market has become a global leader in technology-focused trading. Its electronic trading system, market structure and focus on innovation make it the exchange of choice for technology and growth companies. Nasdaq's influence extends beyond the stock market, playing a key role in shaping the technology landscape and driving economic growth. As technology continues to evolve, Nasdaq is expected to remain at the forefront of technological innovation and investment opportunities.TMGM

#stock #usd

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financial market common stock index

TradeMax Global Markets

financial market common stock index

Stock indexes are widely used as benchmarks to measure the performance of a specific group of stocks or the stock market as a whole. They provide investors with a snapshot of market direction and serve as a reference point for evaluating investment returns. Here are some of the most common stock indexes in financial markets:

S&P 500: The Standard & Poor's 500 Index, often referred to as the S&P 500, is one of the most followed stock indexes in the United States. It includes 500 large companies listed on the New York Stock Exchange (NYSE) or the Nasdaq Stock Market and represents various sectors of the economy. The S&P 500 is considered a broad indicator of U.S. stock market performance.

Dow Jones Industrial Average (DJIA): The Dow Jones Industrial Average is one of the world's oldest and best-known stock indexes. It consists of 30 of the largest U.S. public companies selected by Wall Street Journal editors. The Dow is price-weighted, meaning higher-priced stocks have a greater influence on the index's movements. It is often used as a barometer of the health of the U.S. stock market.

TMGM

Nasdaq Composite Index: The Nasdaq Composite Index tracks the performance of all common stocks listed on the Nasdaq Stock Market. It includes technology companies, biotech companies and other growth companies. The Nasdaq Composite Index is known for its emphasis on technology stocks and is often used to measure the performance of the technology sector.

FTSE 100: The Financial Times Stock Exchange 100 Index, commonly known as the FTSE 100, represents the 100 largest companies by market capitalization on the London Stock Exchange (LSE). It covers a wide range of industries, including financials, energy, consumer products and healthcare. The FTSE 100 is widely used as a benchmark for the UK stock market.

DAX: The DAX is Germany's main stock index, representing the 30 largest and most actively traded companies listed on the Frankfurt Stock Exchange. It includes companies from various industries including automotive, financial services and technology. The DAX is often used to measure the performance of the German stock market.

Nikkei 225: The Nikkei 225 is Japan's most widely followed stock index. It consists of 225 large companies listed on the Tokyo Stock Exchange. The index covers a wide range of industries, including automotive, electronics and financials. The Nikkei 225 Index is often used to measure the performance of the Japanese stock market.

SSE Composite Index: The SSE Composite Index tracks the performance of all stocks listed on the Shanghai Stock Exchange in China. It includes companies from various industries including financial, industrial and consumer products. The Shanghai Composite Index is often used to measure the performance of China's stock market.TMGM

#stock index #stock

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When to place a stop loss in the stock market?

TradeMax Global Markets

Setting a stop loss is a crucial risk management strategy in the stock market. It helps protect investors from significant losses and ensures disciplined trading. Here are some situations where it is recommended to set a stop loss:

Price Drop: When a stock's price drops below a predetermined threshold, it may be prudent to place a stop loss. The threshold can be based on technical analysis such as support levels, moving averages or trend lines. If the stock continues to decline, setting your stop loss at a reasonable level can help limit potential losses.

Breaking out of key support levels: If a stock falls below a key support level, it could signal a potential trend reversal or weakening investor sentiment. Placing a stop loss below this support helps protect against further downside risk.

Adverse News or Events: Unexpected adverse news or events can have a significant impact on stock prices. If a company faces negative developments, such as product recalls, regulatory issues, or declining earnings, it may be prudent to set a stop loss to limit potential losses if the stock price reacts negatively.

TMGM

Deterioration in Fundamentals: If a company's fundamentals deteriorate significantly, it may be a signal to set a stop loss. Factors such as declining revenues, increasing debt levels, or management issues could negatively impact the stock's long-term prospects. If a company's financial condition continues to deteriorate, setting a stop loss can help prevent further losses.

Breakout Technical Patterns: Technical patterns such as a head and shoulders top, double top, or descending triangle can provide insight into potential trend reversals. If a stock breaks below a key technical pattern, it could signal a shift in market sentiment. If the stock continues to fall, placing a stop loss below the breakout point can help limit losses.

Volatility and Risk Tolerance: Setting your stop based on volatility and risk tolerance is a personal decision. Investors with lower risk tolerance may set tighter stops to prevent significant losses, while investors with higher risk tolerance may set wider stops to allow for greater price swings. It is crucial to assess one's risk tolerance and adjust your stop loss accordingly.

Portfolio Diversification: Stop losses can also be set based on portfolio diversification. If a stock's weight in the portfolio exceeds a predetermined threshold, you may need to carefully set stops to rebalance the portfolio. This helps ensure that no one stock has an undue impact on the performance of the overall portfolio.

Trading strategies: Different trading strategies may require different stop loss levels. For example, short-term traders may set tighter stops to protect against short-term price swings, while long-term investors may set wider stops to allow for greater price swings. It is crucial to integrate your stop loss with your chosen trading strategy　TMGM

#stock

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When to Buy and Sell Stocks

Raw Trading Ltd

Determining the right time to buy and sell stocks is a crucial aspect of successful investing. While there is no foolproof strategy, here are some key factors to consider when making these decisions:

Fundamental Analysis: Before buying a stock, conduct thorough fundamental analysis. Evaluate the company’s financial health, including its earnings, revenue, debt levels, and growth prospects. Look for companies with strong fundamentals, competitive advantages, and a solid business model. Consider factors such as the company’s market position, industry trends, and management team.

Valuation: Assess the valuation of the stock to determine if it is undervalued or overvalued. Compare the stock’s price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and other valuation metrics to industry peers and historical averages. A lower valuation relative to its peers may indicate a buying opportunity, while a higher valuation may suggest caution.

Technical Analysis: Use technical analysis tools, such as K-Line charts, moving averages, and trend lines, to identify potential entry points. Look for patterns, support and resistance levels, and trend reversals. Technical analysis can help determine optimal entry points based on historical price patterns and market trends.

Market Conditions: Consider the overall market conditions before buying or selling stocks. In a bull market, where prices are generally rising, it may be more favorable to buy stocks. In a bear market, where prices are declining, it may be prudent to exercise caution or consider selling stocks. However, it is important to note that market timing is challenging, and long-term investors often focus on the fundamentals rather than short-term market fluctuations.

Risk Tolerance: Assess your risk tolerance before making investment decisions. Determine how much risk you are willing to take and how it aligns with your financial goals. Higher-risk stocks may offer greater potential returns but also come with increased volatility. Consider diversifying your portfolio across different sectors and asset classes to manage risk effectively.

News and Events: Stay updated with relevant news and events that can impact stock prices. Positive news, such as earnings surprises or new product launches, may present buying opportunities. Conversely, negative news, such as regulatory changes or economic downturns, may warrant selling stocks. However, be cautious of knee-jerk reactions and consider the long-term implications of such events.

Portfolio Rebalancing: Regularly review and rebalance your portfolio to maintain your desired asset allocation. If a stock’s weightage exceeds your target allocation, consider selling a portion to bring it back in line. Similarly, if a stock’s performance has significantly outperformed or underperformed, it may be appropriate to rebalance by buying or selling shares.

Exit Strategy: Determine your exit strategy before buying a stock. Set clear profit targets and stop-loss levels to protect against significant losses. Consider trailing stop-loss orders that automatically adjust as the stock price moves in your favor. Regularly review your investments and adjust your exit strategy based on changing market conditions or company-specific factors.

Long-Term Perspective: Investing in stocks should generally be approached with a long-term perspective. Short-term market fluctuations can be unpredictable, and trying to time the market consistently is challenging. Focus on the company’s long-term growth potential and invest in stocks that align with your investment goals and time horizon.

Professional Advice: Consider seeking professional advice

IC Markets

#stock market #finance

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The Significance of K-Line Charts in the Financial Industry

Raw Trading Ltd

K-Line charts, also known as candlestick charts, play a significant role in the financial industry as they provide valuable insights into price movements, market sentiment, and potential future trends. Here are some key reasons why K-Line charts are significant:

Visual Representation: K-Line charts offer a visual representation of price movements, making it easier for traders and analysts to interpret and understand market trends. The use of different colors and shapes for the candlesticks helps to quickly identify bullish or bearish signals.

Market Sentiment: K-Line charts reflect market sentiment by showing the balance between buyers and sellers. The color and shape of the candlesticks provide visual cues about the dominance of either buyers or sellers during a specific time period. This information helps traders gauge market sentiment and make informed decisions.

Price Patterns: K-Line charts display various price patterns and formations that can indicate potential trend reversals or continuations. Patterns like doji, hammer, engulfing, and shooting star provide insights into market psychology and can help traders identify potential entry and exit points.

Support and Resistance Levels: K-Line charts help identify key support and resistance levels. These levels represent price levels where the stock has historically encountered buying or selling pressure. Traders use these levels to determine potential entry and exit points and to set stop-loss orders.

Volatility Analysis: K-Line charts provide information about market volatility through the length of the candlestick shadows. Longer shadows indicate higher volatility, while shorter shadows suggest stability. Traders can use this information to assess risk and adjust their trading strategies accordingly.

Confirmation with Technical Indicators: K-Line charts can be used in conjunction with other technical indicators, such as moving averages, trend lines, and oscillators, to confirm or validate trading signals. The combination of K-Line charts with other indicators enhances the accuracy of analysis and decision-making.

Timeframe Flexibility: K-Line charts can be customized to different timeframes, such as daily, weekly, or monthly. This flexibility allows traders to analyze price movements at various levels, from short-term to long-term trends.

Historical Analysis: K-Line charts provide a historical record of price movements, allowing traders to analyze past trends and patterns. By studying historical data, traders can identify recurring patterns and develop strategies based on historical price behavior.

Global Applicability: K-Line charts are widely used across different financial markets, including stocks, currencies, commodities, and indices. This universality makes K-Line charts a common language for traders and analysts worldwide.

Decision-Making Tool: Ultimately, K-Line charts serve as a decision-making tool for traders and investors. By analyzing price patterns, market sentiment, and support/resistance levels, traders can make informed decisions about buying, selling, or holding positions.

In conclusion, K-Line charts are highly significant in the financial industry as they provide a visual representation of price movements, market sentiment, and potential trends. Traders and analysts rely on K-Line charts to identify patterns, support/resistance levels, and market psychology, enabling them to make informed decisions and improve their trading strategies.IC Markets

#K line #Candlestick chart

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In futures trading, investors rely on a variety of factors to make buying or selling decisions. Here are some key factors for investors to consider

Raw Trading Ltd

Market Analysis: Investors analyze the market conditions, including supply and demand dynamics, price trends, and market sentiment. They use technical analysis tools, such as charts and indicators, to identify potential trading opportunities.

Fundamental Analysis: Investors assess the fundamental factors that can impact the price of the underlying asset. This includes analyzing economic indicators, geopolitical events, weather patterns, and government policies that can affect supply and demand.

News and Information: Investors stay updated with the latest news and information related to the underlying asset. They monitor news releases, industry reports, and expert opinions to gauge the potential impact on prices.

Risk Management: Investors use risk management techniques to determine their entry and exit points. They set stop-loss orders to limit potential losses and take-profit orders to secure profits. Risk management also involves determining the appropriate position size and leverage to use in each trade.

Technical Indicators: Investors use various technical indicators to identify potential entry and exit points. These indicators include moving averages, oscillators, and trend lines. Technical analysis helps investors identify patterns and trends in price movements.

Trading Strategies: Investors develop and implement trading strategies based on their analysis and risk tolerance. These strategies can be based on trend following, mean reversion, breakout, or other trading methodologies.

Market Orders: Investors can place market orders to buy or sell futures contracts at the prevailing market price. Market orders are executed immediately at the best available price.

Limit Orders: Investors can also place limit orders to buy or sell futures contracts at a specific price or better. These orders are not executed immediately but are placed in the order book until the specified price is reached.

Stop Orders: Investors use stop orders to limit potential losses or protect profits. A stop order becomes a market order when the specified price is reached, triggering the execution.

Electronic Trading Platforms: Investors can access futures markets through electronic trading platforms provided by brokerage firms. These platforms offer real-time market data, order placement, and trade execution facilities.　IC Markets

It is important for investors to conduct thorough research, stay updated with market developments, and have a well-defined trading plan to make informed buying or selling decisions in futures trading.

#future spouse #futures

[yaso711]

Latest Data on USD and JPY Currency Exchange Rates

Yun Shang Hui Xin Limited

Introduction: The exchange rates between the US dollar (USD) and the Japanese yen (JPY) play a crucial role in global trade and financial markets. This article aims to provide the latest data and analysis on the USD/JPY exchange rate, including historical trends, factors influencing the rates, and their impact on the global economy.

Current Exchange Rate: As of [Date], the USD/JPY exchange rate stands at [Exchange Rate]. This rate represents the amount of Japanese yen required to purchase one US dollar. Exchange rates are subject to constant fluctuations due to various factors, including economic indicators, monetary policies, and market sentiment.

Historical Trends: Over the years, the USD/JPY exchange rate has exhibited both long-term trends and short-term fluctuations. Historically, the yen has been considered a safe-haven currency, leading to periods of yen appreciation during times of global economic uncertainty. However, the USD has also experienced periods of strength due to the dominance of the US economy and its status as a global reserve currency.

Economic Factors: Several economic factors influence the USD/JPY exchange rate. These include interest rate differentials, inflation rates, GDP growth, trade balances, and fiscal policies. For example, higher interest rates in the US relative to Japan can attract foreign investors, leading to an increase in demand for the USD and a potential appreciation against the JPY.

Monetary Policies: The monetary policies of the US Federal Reserve (Fed) and the Bank of Japan (BoJ) have a significant impact on the USD/JPY exchange rate. The Fed’s decisions on interest rates, quantitative easing, and monetary stimulus measures can influence the relative attractiveness of the USD. Similarly, the BoJ’s policies, including its stance on interest rates and asset purchases, can affect the value of the JPY.

Trade and Economic Relations: The trade relationship between the US and Japan also influences the USD/JPY exchange rate. Trade imbalances, tariffs, and trade agreements can impact the value of each currency. Additionally, economic indicators such as export and import data, manufacturing activity, and consumer sentiment can affect market expectations and subsequently influence the exchange rate.

Global Economic Conditions: Global economic conditions and geopolitical events can have a significant impact on the USD/JPY exchange rate. Factors such as economic growth, political stability, and market sentiment can drive investors towards or away from safe-haven currencies like the JPY. Uncertainty or volatility in global markets can lead to increased demand for the JPY, potentially strengthening the currency against the USD.

Impact on Global Economy: The USD/JPY exchange rate has implications for the global economy. A stronger USD relative to the JPY can make Japanese exports more competitive, potentially boosting Japan’s export-oriented economy. Conversely, a weaker USD can benefit US exporters and contribute to a narrowing trade deficit. Fluctuations in the exchange rate can also impact cross-border investments, corporate earnings, and global financial market stability.

Conclusion: The USD/JPY exchange rate is influenced by a multitude of factors, including economic indicators, monetary policies, trade relations, and global economic conditions. Monitoring these factors and analyzing their impact on the exchange rate is crucial for businesses, investors, and policymakers. Understanding the dynamics of the USD/JPY exchange rate can provide insights into the broader trends in the global economy and facilitate informed decision-making in international trade and finance.YSHX

#usd #jpy

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Title: Analyzing the Financial and Economic Outlook of the United States in 2023

YSHX

Introduction: The United States has always been a key player in the global financial and economic landscape. As we look ahead to 2023, it is crucial to analyze the potential trends and factors that may shape the country’s financial and economic outlook. This article aims to provide an analysis of the possible scenarios and key indicators that could influence the US economy in the coming year.

Economic Growth: The US economy is expected to continue its recovery from the COVID-19 pandemic in 2023. With the successful rollout of vaccines and the easing of restrictions, consumer spending is likely to rebound, leading to increased economic activity. The GDP growth rate is projected to be around 3-4%, driven by robust domestic demand and a rebound in global trade.

Inflation and Monetary Policy: Inflation will be a critical factor to monitor in 2023. The unprecedented fiscal stimulus measures implemented during the pandemic may lead to a temporary spike in inflation. The Federal Reserve will closely monitor these developments and may adopt a more hawkish stance by gradually tapering its asset purchase program and raising interest rates to curb inflationary pressures.

Labor Market: The labor market is expected to continue its recovery, with the unemployment rate gradually declining. As businesses reopen and demand increases, job creation will gain momentum. However, structural changes caused by the pandemic, such as automation and shifts in consumer behavior, may lead to a mismatch between available jobs and the skills of the workforce.

Financial Markets: The US stock market is likely to remain buoyant in 2023, supported by strong corporate earnings and accommodative monetary policies. However, increased market volatility cannot be ruled out, especially if there are unexpected geopolitical events or policy changes. Investors should remain cautious and diversify their portfolios to mitigate risks.

Trade and International Relations: The Biden administration is expected to focus on rebuilding international alliances and resolving trade disputes. The US may re-engage in multilateral trade agreements and adopt a more collaborative approach towards China. However, geopolitical tensions and protectionist measures could still pose challenges to global trade, impacting the US economy.

Technology and Innovation: The US remains at the forefront of technological advancements and innovation. Investments in sectors such as artificial intelligence, renewable energy, and biotechnology are likely to continue driving economic growth. Government support and private sector investments in research and development will play a crucial role in maintaining the US’s competitive edge.

Fiscal Policy: The US government’s fiscal policy will be crucial in shaping the economic landscape in 2023. The focus will be on striking a balance between supporting economic recovery and addressing long-term fiscal sustainability. Infrastructure investments, tax reforms, and social spending programs will be key areas of focus for policymakers.

Conclusion: While uncertainties and risks persist, the overall outlook for the US economy in 2023 appears positive. Economic growth, inflation, labor market dynamics, financial market performance, trade policies, technological advancements, and fiscal policies will be the key factors to monitor. Adapting to changing circumstances and maintaining a resilient and diversified economy will be crucial for the United States to navigate the challenges and seize the opportunities that lie ahead.Yun Shang Hui Xin Limited

#usa #Youtube

[yaso711]

Intraday quotes｜Hong Kong stocks rebound! Hengke Index rose more than 3%, science and technology stocks generally rose, Kuaishou rose more than 5%, automobile stocks rose, and Xiaopeng rose nearly 6%.

Tickmill Group

Hong Kong stocks rose, with the Hang Seng Index rising by more than 1% and the Hang Seng Technology Index rising by more than 3%.

Science and technology stocks generally rose, with Kuaishou rising by more than 5%.

On the news, on the morning of September 22, the website of the State Administration for Market Regulation issued a notice on the issuance of "Several Measures by Market Supervision Departments to Promote the Development of Private Economy". Since the Central Committee of the Communist Party of China and the State Council promulgated the "Opinions on Promoting the Development and Growth of the Private Economy" on July 14, the market supervision department has implemented the institutional measures issued by the Central Committee of the Communist Party of China and the State Council to boost confidence in the development of the private economy, regulate and regulate in accordance with the law. It is of great significance to guide the healthy development of private capital.

Automobile stocks were partially higher, with Xpeng Motors rising nearly 6%.

In terms of other stocks, Sunac Services surged more than 37% in the afternoon. On the news, Sunac China disclosed the progress of its overseas debt restructuring. As part of the restructuring consideration, the plan creditors’ final selection of mandatory convertible bonds and existing Sunac Services shares is US$3.989 billion in mandatory convertible bonds and US$1.34 billion in Sunac Services shares, both of which exceed the current limit and will be distributed proportionally .

Regarding the market outlook for Hong Kong stocks, the Federal Reserve’s interest rate hike in September may have brought an end to the disruption to Hong Kong stocks. From a long-term perspective, as the interest rate hike comes to an end, the period of greatest pressure on Hong Kong stocks may have gradually passed, and a turnaround is gradually emerging.

BOCOM International’s latest view is that the Fed’s “hawkish” guidance is not expected to disrupt the rebound in Hong Kong stocks. The bank believes that the Federal Reserve's "hawkish" guidance will not disrupt the rebound of Hong Kong stocks. The Federal Reserve's latest guidance shows that interest rates are about to peak. After the Federal Reserve completes the final increase, a short-term rebound in Hong Kong stocks is still expected.

Tickmill

Zhongtai International said that the recent sharp shrinkage in the trading volume of the Hong Kong stock market shows that mainstream investors are no longer interested in fighting. It also reflects that bears have no intention of selling at this price, which is one of the signs of the bottom of the stock market.

Huatai Securities released a research report saying that looking back, positive factors are accumulating: 1) The current U.S. dollar index may already imply extreme U.S.-European interest rate differentials and oil price expectations; 2) U.S. residents’ excess savings balance may be limited and will be exhausted after There is upward pressure on the unemployment rate → the Fed's interest rate hike path may change; 3) PPI bottomed out year-on-year in June → the market is on the eve of expected trading of replenishment, and the probability of Hong Kong stocks rising has increased. In terms of allocation, it is recommended to focus on procyclical industries with bottom-building & climbing types (consumer building materials, industrial metals, steel) and independent prosperous industries (games, medicine, electronics).

Ping An Securities pointed out that the current Internet platform companies are gradually coming out of the correction period, and profit expectations have improved. Coupled with the current low valuation quantile, the Hang Seng Technology Index with high odds and high elasticity has good allocation value. Coupled with the recent unprecedented intensity of Hong Kong stock buybacks, Hang Seng Technology ETF holdings such as Tencent, Xiaomi, and Kuaishou have been bought back for three consecutive days this week. In addition to the adjustment of the Hang Seng Technology Index, the Hong Kong stock market has continued to adjust recently. For example, the average daily transaction has been less than HK$100 billion, and the transaction amount on certain days has been less than HK$80 billion. The transaction amount has shrunk significantly.Tickmill

#stock #Youtube

[yaso711]

Another country offers an olive branch to Tesla: Turkish President invites Musk to build factory

Spreadex Ltd

Following India, South Korea, Indonesia and other countries, another country has issued an invitation to Tesla to build a factory.

Turkey's official news agency Anadolu Agency posted on social media platform X on Sunday that the country's President Recep Tayyip Erdogan invited Tesla CEO Elon Musk to build a A Tesla factory.

Currently, Erdogan is attending the 78th Session of the United Nations General Assembly in the United States. Anadolu News Agency stated that Erdogan made the invitation when he met with Musk at the Turkish House (Turkish House), the building of the Turkish Office to the United Nations and the Consulate General in New York.

Musk is also scheduled to meet with Israeli Prime Minister Benjamin Netanyahu in California on Monday. Musk posted on X that their talks will focus on artificial intelligence technology.

In August this year, Tesla expressed interest in setting up a factory in India to produce low-cost electric vehicles. Tesla currently has six factories and is building a seventh in the northern Mexican state of Nuevo Leon. This is part of the electric car manufacturing leader's efforts to expand its global footprint.

Musk said in May that Tesla may select a location for a new factory by the end of this year.

Spread EX

As Tesla seeks global expansion, many countries have already extended an olive branch to the electric vehicle leader. In April this year, South Korean President Yoon Seok-yue met with Tesla CEO Musk and invited him to invest in building Asia's second gigabit factory in South Korea. Indonesia has also been sending invitations to Tesla in recent years, hoping that Tesla can invest locally. In addition, Malaysia, Italy, France and other countries have issued invitations to Tesla to build factories.

On September 17, Tesla’s official Weibo announced that Tesla’s world’s 5 millionth vehicle officially rolled off the assembly line at Tesla’s Shanghai Gigafactory. This marks a huge milestone in the company's expansion efforts over the past few years.

Since the beginning of this year, with the AI craze, the stock prices of the "Seven Technology Giants" in the US stock market, including Tesla, have soared. Tesla’s stock price has risen 153% this year. Spread EX

#tesla

[yaso711]

The U.S. strike enters a new phase: the total number of days absent from work in August doubled the 20-year average!

Spreadex Ltd

Strike movements have occurred one after another in the United States this year. Almost every day, different unions threaten to strike or are going on strike. This poses a great challenge to the stability of the American economy.

After midnight last Friday, the United Auto Workers (UAW), one of the largest unions in the United States, officially launched a strike. This was also a new high point in American union actions.

As wages for low- and middle-income Americans have stagnated for decades while the wealthiest Americans have boosted their wealth to unprecedented levels, local unions have become more aggressive.

Data from the Economic Policy Institute, an American research organization, shows that from 1979 to 2022, the inflation-adjusted annual salary of the top 1% of workers in the United States increased by 145%, while the annual salary of the bottom 90% of workers increased by only 16%. The increase was only close to one-tenth of the latter.

Among them, falling taxes on the wealthy, the decline of union power, and the long-term flat minimum wage for federal workers are some of the main reasons for the trend of widening wealth gaps.

From Hollywood screenwriters to nurses, from auto workers to Starbucks baristas, all walks of life have shown a strong desire to raise wages in recent months, which has also led to frequent strikes.

New changes in trade unions

According to media surveys and analysis of U.S. Department of Labor data, in August this year, the United States lost a total of 4.1 million working days due to strikes and lockouts. Since 2000, the number of days lost to strikes in the United States has never exceeded 2 million working days in a single month. .

Data from the Cornell University Labor Relations Institute points out that in the past year as of September 13, unions across the United States have launched 396 strikes, which is close to the 409 strikes in the previous year.

In addition to the increase in strike frequency, the scale of union actions is also expanding. The UAW strike is a typical example.

In the past, UAW strikes have usually targeted just one automaker, leaving the other two manufacturers open. Once it reached an agreement with the striking company, the UAW quickly asked the other two companies to accept similar conditions.

Spread EX

However, during this strike, the UAW and its president, Shawn Fain, took a tougher stance, negotiating directly with the three companies at the same time and promoting a joint strike.

Joseph McCartin, a labor history expert at Georgetown University, said that the UAW strike is a major innovation that heralds the trend of smarter and more radical union leaders and that the labor movement and its ideas are undergoing generational changes. The United States is in the midst of a strong labor market, with unions and workers feeling more influential.

Gallup's survey also demonstrates workers' bargaining advantage. Public support for unions has reached its highest point since 1965, with 67% of the public expressing support and believing that unions are the key to improving wages and working conditions. The average wage of unionized workers is 10.2% higher than that of non-unionized workers.

The development of this trend may mean an inevitable rise in labor costs for the U.S. economy, which will squeeze corporate profits and even become the main driving force for the next round of inflation.Spread EX

#usd #UAW #Youtube

[yaso711]

U.S. auto industry in turmoil, historic strike may cause huge losses

Yun Shang Hui Xin Limited

On September 15, U.S. time, 12,700 workers of the United Auto Workers (UAW) held historic strikes simultaneously at three factories in Michigan, Missouri and Ohio.

The reason for the strike is that the labor contracts between about 150,000 American auto workers and the three automakers General Motors, Ford and Stellantis Group have expired, and the labor and management parties have not reached an agreement. This is the first time in more than 80 years since the founding of the United Auto Workers that auto workers have staged a strike against the three automakers mentioned above.

Public information shows that the UAW is one of the largest workers' associations in the United States. There are as many as 146,000 UAW union members in General Motors, Ford, and Stellantis Group, accounting for approximately 56% of all workers in the U.S. auto manufacturing industry.

The strikes were initiated at the General Motors Assembly Plant in Wentzville, Missouri, which produces Chevrolet Colorados, GMC Canyons and other models; and at the Stellantis Assembly Plant in Toledo, Ohio, which produces Jeep Wrangler models; and the Ford Assembly Plant in Wayne, Michigan, which produces the Ford Ranger and Bronco models.

Sean Fein, president of the United Auto Workers Union, said that although a larger "general strike" has not yet been held, if the labor and management cannot reach a new contract, then "any option is possible."

The general strike by the three major automobile manufacturers will have an impact on the automobile market and supply chain. The most direct impact is that the factories of these three car companies have stopped production, extending the delivery time of automobile products and reducing inventory, which will cause damage to automobile sales revenue. Oxford Economics predicts that if the nearly 150,000 unionized workers at the three companies end up going on strike, the move could halt about one-third of U.S. vehicle production, put pressure on the labor market and push up new car prices.

The automobile industry chain is long, and the strike will have a chain reaction on the supply chain. The U.S. automotive industry's supply chain is complex and extensive, including hundreds of suppliers and manufacturers. The strike will disrupt the supply chain and cause significant disruption to parts supply and vehicle production. Jeff Schuster, head of global automotive business at consulting firm GlobalData, said that a strike at one engine or transmission plant of each car company would be enough to shut down nearly three-quarters of U.S. assembly plants.

The historic strike by the United Auto Workers union not only threatens the automobile industry, but also has a serious impact on the overall stability of the U.S. economy.

The automobile manufacturing industry occupies a pivotal position in the U.S. economy and is one of the country's largest manufacturing sectors. According to a study by Michigan-based consulting firm Anderson Economic Group, a 10-day strike by the Big Three could result in more than $5 billion in economic losses. The automobile industry (including foreign-funded enterprises doing business in the United States) accounts for about 3% of U.S. GDP, and the strike will also affect the U.S. economic performance for some time to come. The Toledo plant of Jeep Motor Company, a subsidiary of the Stellantis Group, alone may suffer losses of up to US$380 million due to a week of closure. In 2019, the UAW went on strike against General Motors for six weeks, involving 48,000 workers in more than 50 factories. General Motors suffered losses of up to $3.6 billion, and Michigan experienced a single-quarter economic recession.

In the new negotiation agreement, the UAW hopes that the three auto companies will provide a 40% salary increase for auto workers; it also requires that all workers be provided with welfare pensions, a 32-hour work week and additional cost-of-living benefits, and the elimination of temporary workers and the tiered wage system, etc. . Top assembly workers, for example, will see their wages rise from the current $32 an hour to $47 an hour. Since it will significantly increase labor costs, the three car companies believe that the union's demands are unrealistic.

Currently, the automobile industry is in the process of electrification transformation. Major automobile companies have increased investment in the field of electrification. The increase in labor costs will intensify the pressure on automobile manufacturers. GM President Mark Reuss said the union's wage and benefit proposals would put GM up to $100 billion in cost pressures. This cost estimate is more than twice the current total value of GM, and GM cannot afford this burden.

Ford also said in a statement that the UAW's latest proposal would double its labor costs, and the company would face the dilemma of being unable to compete effectively with non-union opponents, especially Tesla. "If the plan proposed by the UAW is followed, Ford's labor costs will be significantly higher than those of Tesla, Toyota and other foreign-owned automakers in the United States. These automakers use non-union represented labor."

According to the plan proposed by the union, combined with wages and benefits, the labor cost of the three major automakers is approximately $64 per hour. According to previous foreign media reports, the all-inclusive labor cost at non-union assembly plants of Toyota Motor and other international automakers is US$55 per hour. Tesla's labor costs are even lower, at $45 to $50 an hour.

YSHX

It is worth noting that Tesla CEO Musk has long been outspokenly opposed to labor unions. He believes that labor unions will drag down corporate efficiency. After the strike, Musk tweeted: "The wages I pay to workers are higher than what the UAW wants. The performance requirements are also higher. Over the years, our factory has had many technicians working on the production line. , became a millionaire by holding stock options in the company.”

To solve the problems caused by this historic strike, both labor and management need to restart contract negotiations and actively find common solutions. This requires compromise and flexibility on both sides to meet the reasonable demands of workers while ensuring the competitiveness of car companies.

#usa #uaw #Youtube

[yaso711]

After France and the Netherlands, South Korea also announced that it would require Apple to submit a report on iPhone 12 radiation issues

Yun Shang Hui Xin Limited

Yonhap News Agency reported on the 17th that South Korea’s Ministry of Science, Technology, Information and Communications said that day that it had asked Apple to submit a report on the radiation issues of the iPhone 12 model. Previously, it was revealed that the iPhone 12 model had been stopped from sale in the French market because its electromagnetic radiation value exceeded EU standards. The Netherlands also asked Apple to explain the situation. "In the future, we will ensure precise verification of four iPhone12 models." South Korea's Ministry of Science, Technology, Information and Communications stated that if the re-verification results show that the electromagnetic radiation value exceeds normal standards, the Ministry of Science and Technology will order Apple to make corrections and make a decision to stop importing and selling iPhone 12.

YSHX

#iphone #Youtube

[yaso711]

The underlying logic of the endless expansion of U.S. national debt

TradeMax Global Markets

Although Fitch International lowered the U.S. credit rating from the highest "AAA" to "AA+", it does not seem to have any impact on the pace and intensity of U.S. Treasury bond issuance. On the basis of US$657 billion already raised in the second quarter, the United States will raise US$1,007 billion and US$852 billion respectively in the third and fourth quarters of this year. Based on the incremental issuance scale, there is no doubt that US debt will exceed US$34 trillion by the end of this year. , and the subsequent larger national debt figures will also cover the previous national debt issuance records. The international community is also concerned about whether this endless national debt expansion will eventually lead to default risks of being unable to repay as scheduled or not repaying debts.

Since it fell from a creditor country to a debtor country in 1985, the United States has never looked back and has gone further and further on the path of national debt expansion. It’s too long to mention that the U.S. national debt was US$17 trillion 10 years ago. Now it has expanded to US$32.6 trillion, a net increase of 94%, and the average annual debt issuance is US$1.57 trillion. At the same time, the proportion of U.S. national debt to GDP did not exceed 100% 10 years ago, but now it exceeds 120%, and the U.S. government sector leverage ratio (the ratio of debt scale to fiscal revenue) is about 13% higher than the average of G20 group members. In addition, if the debt is divided, it is equivalent to a debt of US$236,000 per American household, and a debt of approximately US$100,000 per person. Not only that, the market predicts that the U.S. national debt will exceed $50 trillion by 2030.

The continuous and substantial expansion of the national debt scale actually reflects the basic mirror image of the long-term imbalance of public finance revenue and expenditure. Except for a few years, the U.S. government has historically been unable to make ends meet. Looking at the last 10 fiscal years, U.S. fiscal revenue did not exceed US$4 trillion until fiscal year 2021, but fiscal expenditures exceeded US$4 trillion as early as 2018. If the average fiscal year is used, the average annual fiscal revenue in the 10 years is 3.7 trillion U.S. dollars, the average annual expenditure is 5 trillion U.S. dollars, and the annual fiscal deficit is 1.30 trillion U.S. dollars. Among them, the deficit in fiscal year 2020 is the largest, reaching 3.1 trillion U.S. dollars, accounting for GDP ratio rose to 16%. Overall, the average annual fiscal deficit in the United States has remained above 7% in the past 10 years, and the deficit in fiscal year 2023 will reach US$1.57 trillion.

Theoretically, the fiscal deficit of the previous year can be made up with the tax revenue of the next year, but the problem is that the fiscal deficit will continue to occur in the next year or even the next year, so the hope of filling the fiscal gap can only be pinned on borrowing. Borrow money. Data show that in the entire fiscal expenditure, the proportion of U.S. Treasury debt revenue generally remains at about 30%, which means that 30% of the revenue to maintain fiscal balance needs to come from Treasury debt, and the fiscal dependence on Treasury debt reaches 30%. However, as the scale of debt increases, the pressure on interest payments will also increase. Statistics show that U.S. federal fiscal interest expenditures reached US$475 billion in fiscal year 2022, and may exceed US$660 billion in fiscal year 2023.

Issuing treasury bonds is a common practice for almost all countries in the world, but no country can sell its treasury bonds around the world without any promotion like the United States. It has even been heavily allocated as a core asset by many countries. Not only that, U.S. debt has also been labeled It has received a high-level safety symbol and is widely supported and welcomed by other market entities, so much so that many investors believe that there is no risk of default on U.S. debt. Even Nobel Prize winner Paul Krugman recently It also concluded that there will be no debt crisis in the United States in the next 10 to 20 years.

It must be admitted that the sales of any kind of bond first depends on the financial strength of the borrower, that is, whether it has the ability to repay principal and interest on schedule, and has never had a record of default. Otherwise, the buying and selling logic of financing and investment cannot continue. Data show that in the past 10 years, the U.S. federal government’s revenue in the smallest fiscal revenue year has reached 2.5 trillion U.S. dollars. Even if the maximum interest payment amount in fiscal year 2023 is used as a reference, the fiscal revenue is enough to pay for four years of national debt. Interest, that is to say, in each fiscal year in the past 10 years, the U.S. government’s fiscal revenue can pay interest on Treasury bonds for at least four years. This determines that there is no default on U.S. Treasury bonds, and it also allows the market to hold more U.S. debt This provides a sense of security, and as long as the economy can reach an average annual growth rate of 2.4% as it has in the past 10 years, the U.S. government's fiscal revenue can still cover debt repayment interest, and debt sustainability can be maintained.

Of course, according to calculations by the U.S. Budget Office, current interest payments on national debt already account for 9% of the entire fiscal revenue. In the future, the remaining share of debt repayment interest on fiscal revenue will continue to increase. However, it must be clear that stable fiscal revenue is important for national debt. In terms of issuance, it only plays an endorsement role. In fact, the U.S. government cannot allow all debt interest to be borne by fiscal revenue. It is even stupid enough to actually use fiscal revenue to pay interest. Instead, it will only use the revenue obtained from additional issuance of national debt. The interest-paying function of fiscal revenue thus touches the real basis of debt expansion—US dollar credit. In short, it is US dollar credit that supports and maintains the expansion of US debt. The reason why this logical connection can be formed is related to the creation of the Federal Reserve. The way the dollar is credited is directly related.

Different from the traditional fiscal theory of "living within one's means", the Federal Reserve follows the Modern Monetary Theory (MMT). The core principle of this theory is that the main body of base money creation is a combination of the government and the central bank. Through the government's issuance of treasury bonds and the central bank's Purchasing completes the creation of base money. Specifically, the Federal Reserve creates incremental money based on the amount of national debt, and after the national debt matures, the Treasury returns the currency to the Federal Reserve. The interactive closed loop ensures that currency depreciation will not be caused by excessive spillover of the US dollar. Therefore, it can be said that the Federal Reserve creates credit and The process of recovering U.S. dollars is actually an act of maintaining the credit of the U.S. dollar. Correspondingly, although the U.S. dollar has experienced periodic declines from time to time in the flow process, the general historical trend has been continuously upward.

What we have to admit is that in addition to the Fed's way of creating money that maintains the credit of the US dollar, the global unbalanced monetary system actually constitutes another protective barrier for the credit of the US dollar. Although it has been 52 years since the Bretton Woods System disintegrated, the US dollar’s hegemony in global finance and trade remains unchanged. Of the 81 raw material price series released by the United Nations Conference on Trade and Development, only 5 are not priced in US dollars. In terms of circulation, according to SWIFT statistics, the current market share of the US dollar in international payments is 46%; in cross-border trade financing, the US dollar’s share is as high as 84%; in addition, in global foreign exchange transactions, the US dollar accounts for 88%, while financial transactions 47% of international claims are denominated in US dollars, and up to 58% of international reserves are US dollar assets. In terms of the proportion of the above indicators, the US dollar currently ranks first. This privileged status of "one currency alone" means that the US dollar is no longer a single sovereign currency, but has been given the responsibility of the global "credit standard".

It is the U.S. dollar that has acquired a unique credit that is different from other sovereign currencies and has performed very stably so far. The credit and value of U.S. dollar treasury bonds have naturally been recognized by the market. Data shows that the Federal Reserve currently holds 40% of the treasury bonds, overseas central banks hold a total of about 25%, and the two boxes together account for as much as 65%. Although for the purpose of hedging the risk of local currency depreciation, the central banks of some countries will Selling U.S. debt in the secondary market is only a short-term and strategic behavior, and excessive selling will inevitably increase the pressure on the local currency to appreciate, which in turn will curb the country's exports, weaken the foundation of foreign exchange reserves, and harm the country's balance of international payments. ability and external financing credit. This is also true. The global central bank's allocation of U.S. debt has been in a state of increasing and slowly rising. The credit of U.S. debt has also been further consolidated. U.S. Treasury bonds are the most important and safest in the world. The status of safe-haven assets has also been continuously strengthened.

TMGM

The last thing to emphasize is that with the support of relatively stable currency and credit, the United States has this unique condition in the operation of sovereign debt that other countries in the world cannot create and imitate. It is precisely by virtue of its own advantages in scarce resources that it has In any investment and financing scenario, U.S. Treasury bond products are always in short supply in the market, and the failed auction of U.S. Treasury bonds has become a legend that has never happened. It is worth noting that although the latest U.S. bond auction has a Fitch rating Despite the disturbance of downward factors, the number of domestic and foreign buyers participating in the placards has been increasing, and the proportion of foreign buyers has reached a record high in history.

As the scale of debt expands, the U.S. finance will definitely feel more pressure. To this end, it needs to be diverted and resolved through economic growth, especially through fiscal austerity arrangements such as reducing public expenditures and increasing taxes. However, the result will inevitably have a negative impact on business activities and markets. Investment and consumer demand are suppressed, and this result is obviously not what the leaders want to see. On the contrary, issuing more national debt is simpler and more convenient than tightening finances, and it is easier to obtain revenue. Although it expands the fiscal deficit, if it simultaneously improves people's welfare and even stimulates the economy, not only can the governance risks be minimized, but also the government's risks can be minimized. Public reputation will also increase day by day. It seems that the expansion of US national debt will only always be on the way.

#USA #Youtube