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New highs for Chinese economic data and US anti-China hysteria
Weekly investor research
03 August 2020
The Chinese economy continues to recover strongly. Anti-Chinese hysteria reaches a surreal new high as US President Donald Trump threatens to ban a Chinese-owned social media platform for children to sing, dance, joke, and lip-sync. Petrobras and PEMEX deliver strikingly different results. South Korean exports and industrial production improve. Chile puts in place measures to soften the market impact of pension fund withdrawals as Mexico now also considers allowing pension fund withdrawals. Hong Kong delays the election for the Legislative Council. South Africa secures IMF support. Ecuador extends the deadline for bondholders to agree to its restructuring offer. Brazilian credit conditions improve. The increase in Asian reserves in Q2 2020 was greater than the decline in reserves in Q1 2020, reflecting that EM external accounts are at their most resilient in two decades. The global backdrop discusses recent developments in the US and Europe.