Global Economic Update

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In the past 20 years, as investors turned a blind eye to the Chinese stock market on Wall Street, the value of Chinese stocks on Wall Street soared from billions of dollars to 2 trillion dollars. Unstable legal structure Support many of the country’s largest U.S. listed companies.

But Beijing has cracked down on China’s US$100 billion tutoring industry in the past week, including prohibiting companies from using this structure called a variable interest entity (VIE), which has caused some of the world’s largest investors to fear more Widespread disaster.

Fearing that the ban on coaching VIEs may extend to other industries, the move has wiped out tens of billions of dollars in the market value of Chinese companies listed in New York.

At least for now, the sharp sell-off in the Chinese stock market has slowed.High-tech Nasdaq Composite Index Up 0.7% The Wednesday following the sharp drop in the Chinese stock market this week. Hong Kong’s Hang Seng Index rose more than 1% after falling by more than 4% on Tuesday. The China CSI 300 Index rose 0.2% after falling 3.5% in the previous trading day.

At the same time, the CEO of DWS, one of Europe’s largest investors, refuted China’s escalating regulatory crackdown because “noise”.

There are five more stories in the news

1. The Fed hints at the imminent reduction decision The Fed says this is near Withdraw support for the U.S. recovery by reducing asset purchases by the central bank. Currently, the Federal Open Market Committee maintains the main interest rate close to zero and said it will continue to buy $120 billion in debt each month at the end of the two-day meeting.

2. U.S. infrastructure deals are coming to an end A group of U.S. senators and President Joe Biden resolved the biggest sticking point in the negotiations $1 trillion bipartisan infrastructure billTo vote on one of them U.S. President Joe BidenA possible primary economic priority later in the evening in the United States. (FT, Associated Press)

3. Taliban officials visit China Senior Taliban official Mullah Baradar Ahund led 9 people Delegation visits Beijing According to the Islamic organization, during a two-day visit, he met with Chinese Foreign Minister Wang Yi on Wednesday. The group discussed security issues, because in the final stages of the U.S. withdrawal from Afghanistan, regional powers scrambled to protect their interests.

4. Biden warned that cyber attacks could lead to “real gun battles” Joe Biden warned that cyber attacks could escalate to Total War A series of hacking incidents targeting U.S. government agencies, companies, and infrastructure has led to increased tensions with Russia and China.

5. Morgan Stanley raises junior salary Morgan Stanley is increase salary Serving its junior investment bankers, making it the latest bank on Wall Street to raise salaries after complaining about difficult working conditions in the industry. According to people familiar with the matter, the investment bank analysts in the first year will receive $100,000 per year, and the analysts in the second year will receive $105,000.

Tokyo Olympic finals

• Four-time Olympic gold medalist Simone Byers quit From the women’s all-around gymnastics final, one day later Unplug Women’s team finals.

• Japan’s Ohashi Yui Won her Second gold medal After defeating American Alex Walsh in the 200m individual medley. She is the first Japanese female swimmer to win two Olympic gold medals.

• Fiji After beating Argentina 26-14 in the semifinals on Wednesday, they are still expected to retain the Olympic champion in the Rugby Sevens.

• Athletes have Express concern Regarding the condition that the temperature is higher than 30C and the humidity reaches 63%. “I can finish the game, but I can die”, Russian Olympic Committee Daniel Medvedev Tell Tennis referee.

Just in a very metallic moment in Olympic tennis, Medvedev casually asked what would happen if he died on the court pic.twitter.com/kotZxePtEw

— Timothy Burke (@bubbaprog) July 28, 2021

Add to ‘Tokyo Olympics‘Go to myFT to learn about all our coverage of the Olympics, don’t miss our “Alternative Medal Table”.

the day before

Robin Hood IPO The retail brokerage application will begin trading on the Nasdaq today under the ticker symbol “HOOD”.It is seeking a valuation of up to 35 billion U.S. dollars because its goal is Pricing its shares at between US$38 and US$42 per shareIt decided to reserve unusually large shares for its clients, which allowed fund managers to prepare for the debut of volatile trading.

income All eyes are on Credit Suisse New Chairman Antonio Horta-Osorio The 165-year-old bank reported earnings today after the chaos of the Greensill and Archegos scandals. When Amazon releases its report in the United States on Thursday, the banner week for large technology companies is expected to continue. Airbus, MasterCard, Samsung and Total will also announce results.View our complete list here.

U.S. GDP The country’s second-quarter gross domestic product data to be released today is expected to be 9.2% acceleration, But the growth during the pandemic may reach its peak. (CNBC)

Coronavirus Digest

• Fully vaccinated tourists UK People from the U.S. and parts of Europe will be allowed Skip isolation, The British Secretary of Transportation announced.

• Google Has become the first large technology company in the United States to require its employees to work Vaccinated Before they return to work at one of the campuses.

• Developing economies Limited access to vaccines may hinder the recovery of the global economy from the pandemic, International Monetary Fund warning.

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What are we still reading

It’s not too late to save Tunisia’s crumbling democracy Just as the United States and the European Union fumbled when they took action in Egypt in 2013, they seem to be observing the wind in Tunisia-but This is shortsighted, Wrote international affairs editor David Gardner. The United States and the European Union must use the influence they still have.

Hong Kong’s warnings about terrorist threats are suspected In this month, the two authorities referred to the two incidents in the territory as terrorismExperts are asking whether suppression of dissent is inciting underground violent resistance. Others questioned whether officials are using isolated incidents to provide a basis for Xinjiang-style security repression.

Investors turn to customized stock portfolios The big names in the asset management field are preparing for a major shift to the era of investor demand Customized stock portfolio This is traditionally a patent for wealthy customers. Fund managers expect this to mark the next stage of financial democratization.

Are we entering a new phase of climate change? A village in Canada recorded a high temperature of 49.6 degrees Celsius. Tsunami-like floods swept through German towns and Chinese subway passengers stood in chest-high water.For a long time, scientists have predicted that the temperature will rise steadily, but this view is Start to change. Some people question whether this is Late summer as we know. (“Financial Times”, “New York Times”)

HTSI Cultural Guide for Summer 2021 Choice of leading fashion designers, actors, stylists and journalists Their favorite Books, playlists and podcasts will let you spend a summer full of reading, listening and watching.