It’s no longer a given that China will become the world’s largest economy (3 min read) China's economic performance has been disappointing and the hopes for a stimulus similar to 2008 are fading. The weak growth and recovery are from deep-rooted challenges like over-reliance on real estate, state-owned enterprises, and more. China's trade and investment outlook is also problematic amid tension with the US. Its future growth relies on transitioning to new sectors, but it will take time. Many experts now don’t see China driving the global economy any time soon and are likely to struggle through 2024 or beyond.
Oil cut extension raises risk of Saudi economic contraction this year (3 min read) Saudi Arabia's decision to extend oil production cuts may lead to an economic contraction this year due to the country’s high dependence on oil. It recently extended its output cut of 1 million barrels a day until the end of 2023. This move has pushed oil prices above $90 per barrel but still falls short of last year's average of $100 per barrel. The declining oil revenue could result in Saudi Arabia’s economy shrinking, and economists have revised growth forecasts downwards.
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Business & Stocks
Shrink and theft losses on the rise for US retailers (9 min read) During recent earnings reports, about two dozen US retailers disclosed that theft remains a challenge that affected their profits. However, the disclosed losses are generally a small fraction of net sales and pale in comparison to other factors affecting margins. Experts suggest some may be using it as an excuse to distract from other poor management issues. This article analyzes the top US retailers and the shrinkage they’ve reported in the recent quarter.
Nvidia CEO Sold $42 Million In Shares: What Investors Should Know (2 min read) Nvidia's CEO, Jensen Huang, recently sold over $42 million worth of company shares. These sales were part of a predetermined plan established earlier in the year, which helps eliminate doubts about insider trading due to potential weakness. The company is on track to double its quarterly revenue but some analysts still believe the insider selling may trigger a selloff. The last time Jensen sold Nvidia shares, the stock went down about 60% in the next few months.
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Funds & ETFs
Looking to Tap Europe ETFs? 4 Picks to Earn Juicy Yield (2 min read) Europe ETFs have lagged behind the S&P 500 and are up only about 10% this year. Eurozone GDP growth has been lackluster, raising concerns about a possible recession. Despite the economic challenges, Europe offers lower interest rates than the US and attractive dividend yields. This makes European high-dividend ETFs worth considering for investors seeking income in uncertain times. The article highlighted a few Europe ETFs that yield in the range of 5% to 19%.
The crypto ETFs that could launch before a US spot bitcoin fund (3 min read) Grayscale's lawsuit victory has increased the chances of a US spot Bitcoin ETF launching in 2023, but the SEC recently extended its decision timeline. Ether futures ETFs, which do not actually hold the crypto in the fund, seem closer to approval as the SEC had previously accepted such a structure. Several firms have proposed ETFs combining bitcoin and ether futures, with some potentially launching in October.
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