Money

Evergrande liquidation sends shockwaves through China

Published

2 years ago

January 29, 2024

Ahron Young

A Hong Kong court has ordered the liquidation of Evergrande Group, unleashing reverberations throughout the Chinese economy.

The decision has far-reaching implications, not only for China’s beleaguered property sector but also for the broader economy, as highlighted by the Reserve Bank of Australia’s concerns about the impact on Chinese demand for Australian goods and services.

The announcement of Evergrande’s liquidation sent shockwaves through financial markets, with shares in the company trading in Hong Kong plummeting by a staggering 21 percent.

Widely anticipated

This decline was widely anticipated but still served as a stark reminder of the turmoil that has engulfed Chinese and Hong Kong equities, erasing trillions of dollars in value since their peak in 2021.

Analysts have expressed skepticism about the prospects of offshore creditors recovering a significant portion of their investments in the troubled property giant.

Uncertainty surrounds the unfolding of the liquidation order, particularly concerning Evergrande’s numerous projects in China, which are primarily operated by local developers answerable to government authorities.

These local entities may be hesitant to cooperate with foreign creditors, given the potential political ramifications. Most of Evergrande’s assets are concentrated in mainland China.

Global financial stability

The turbulence in the Chinese property sector has been a source of concern for global financial stability.

The Reserve Bank of Australia, in its October Financial Stability Assessment, emphasized the property sector’s significance in the Chinese economy and its potential to exacerbate macro-financial imbalances through ties to local government financing, shadow banking activities, and banks.

Evergrande, once China’s largest property developer, initially defaulted on bond repayments in December 2021, accumulating a staggering debt exceeding $300 billion.

The treatment of international creditors during the liquidation process will be closely monitored by foreign investors who are growing increasingly wary of China’s business climate.

Foreign capital

The Chinese government, led by Xi Jinping, has expressed its desire to attract more foreign capital after years of regulatory uncertainty.

While iron prices remain robust due to stockpiling by Chinese steel mills ahead of the Lunar New Year holidays, mining companies are closely watching for any signs that Evergrande’s liquidation may dampen demand for steel.

Billions of dollars worth of unfinished construction projects hang in the balance, which could affect steel consumption.

Money

Are we in an AI bubble or just a market reality check?

Tech stocks falter as AI boom faces reality; market shifts towards gold amidst growing investor caution.

Published

5 days ago

November 6, 2025

Ahron Young

Tech stocks falter as AI boom faces reality; market shifts towards gold amidst growing investor caution.

Global tech stocks are losing altitude as investors question whether the AI boom has gone too far — or if the market is simply returning to earth after years of euphoric growth. With valuations for chipmakers and AI giants stretched to perfection, analysts warn that expectations may finally be colliding with economic reality.

In this segment, Brad Gastwirth from Circular Technologies joins us to unpack the trillion-dollar question: is this a healthy correction or the first crack in the AI gold rush? From hyperscaler capex surges to regulatory risks and fragile market leadership, he breaks down what’s driving investor nerves.

We also explore how the market rotation into gold and real assets reflects growing caution, and what this could mean for the future of AI-driven investing.

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#AIBubble #TechStocks #MarketCorrection #Semiconductors #Investing #FinanceNews #AIStocks #TickerNews

Money

Inflation rise reduces chances of Reserve Bank rate cut

Inflation spikes, drastically reducing chances of a Reserve Bank rate cut amid economic pressures and rising costs

Published

2 weeks ago

October 29, 2025

ticker NEWS

Inflation spikes, drastically reducing chances of a Reserve Bank rate cut amid economic pressures and rising costs

In Short:
– Rate cut likelihood by the Reserve Bank has decreased due to a rise in annual inflation to 3.2 per cent.
– Significant price increases in housing, recreation, and transport are raising concerns for the Reserve Bank.

The likelihood of a rate cut by the Reserve Bank has decreased significantly after a surge in annual inflation.

The Australian Bureau of Statistics reported that inflation for the year ending September rose to 3.2 per cent, reflecting a 1.1 per cent increase.

Trimmed mean inflation, a crucial measure for the Reserve Bank, was recorded at 1 per cent for the quarter and 3 per cent for the year. The bank anticipates inflation to reach 3 per cent by year-end, while trimmed mean inflation is expected to slightly decrease.

The quarterly rise of 1.3 per cent in September exceeded expectations. Governor Bullock noted that a deviation from the Reserve Bank’s projections could have material implications.

Financial markets reacted promptly, with the Australian dollar rising against the US dollar, while the ASX200 index fell.

The most significant price increases were observed in housing, recreation, and transport, indicating widespread price pressures that concern the Reserve Bank.

Despite the unexpected inflation rise, some economists believe the Reserve Bank may still consider rate cuts in December, viewing current price spikes as temporary due to the winding back of subsidies.

Economic Pressures

Broad-based economic pressures suggest that the Reserve Bank may not reduce interest rates at its upcoming meeting. Analysts highlight the need for ongoing support for households facing cost-of-living challenges.

Money

Wall Street hits record highs on low inflation

Wall Street hits record highs on cool inflation and strong earnings ahead of key Federal Reserve interest rate decision

Published

2 weeks ago

October 26, 2025

Ahron Young

Wall Street hits record highs on cool inflation and strong earnings ahead of key Federal Reserve interest rate decision

In Short:
– U.S. stocks rose to record highs on Friday due to lower inflation and strong corporate earnings.
– Key earnings reports from major companies are expected next week, influencing market trends.

U.S. stocks rose to record highs on Friday due to lower-than-expected inflation data and positive corporate earnings.The S&P 500 and Nasdaq achieved their largest weekly gains since August. The Dow saw its biggest jump from Friday to Friday since June.

The Labor Department reported that the Consumer Price Index was slightly cooler than analysts’ predictions, easing concerns about inflation impacts from tariffs. This development suggests a likely interest rate cut by the Federal Reserve at its upcoming meeting.

Ryan Detrick from Carson Group noted the positive inflation news may facilitate forthcoming Fed rate cuts. Despite the ongoing government shutdown affecting data releases, this CPI report provided much-needed clarity.

Earnings reports are continuing, with 143 S&P 500 companies having reported results. Growth expectations for third-quarter earnings have risen to 10.4%. Detrick indicated a strong opening to the earnings season with a significant percentage of companies exceeding expectations.

This coming week, key earnings will be reported from Meta Platforms, Microsoft, Alphabet, Amazon, and Apple, alongside industrial companies like Caterpillar and Boeing.

The Dow rose 472.51 points to 47,207.12. The S&P 500 increased by 53.25 points to 6,791.69, while the Nasdaq gained 263.07 points, reaching 23,204.87.

Alphabet gained 2.7% following a deal expansion with Anthropic. Coinbase saw a 9.8% increase from a JPMorgan upgrade. In contrast, Deckers Outdoor’s shares fell 15.2% after lowering sales forecasts.