RSS feed Forex Humor http://news.mt5.com/data/logo.gif http://www.mt5.com/ MT5.com 2009-2013 RSS feed Forex Humor http://www.mt5.com/ Funny Forex drawings and caricatures <![CDATA[IEA expects lower oil demand growth in 2024]]> http://www.mt5.com/en/forex_humor/image/101006

The International Energy Agency (IEA) downgraded its oil demand growth forecast to 1.2 million barrels per day (bpd) for 2024. The agency revises its forecasts every month.

 

The global energy watchdog presented a more optimistic forecast in March, anticipating energy demand at 103.176 million bpd. According to revised estimates, global energy demand is now expected at 103.166 million bpd on average this year.

 

The IEA also updated its estimates for the energy consumed in 2023: 101.946 million bpd versus 101.842 million bpd in the previous report. Besides, the agency says in April that the pace of oil demand growth is likely to decline to 1.202 million bpd in 2024 versus 1.334 million bpd estimated in March. IEA experts admit that such revision is a common practice.

 

The watchdog also predicted some improvement in global oil demand by 2025 to 103.312 million bpd.     

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http://www.mt5.com/ru/forex_humor/image/101006 Thu, 18 Apr 2024 14:52:14 +0000
<![CDATA[US inflation expectations remain unchanged]]> http://www.mt5.com/en/forex_humor/image/101003
It seems that Americans are starting to get used to inflationary pressure. A survey by the Federal Reserve Bank of New York says that average inflation expectations stay at 3%. However, the situation is not that rosy. The three-year forecasts were upwardly revised to 2.9%, while the five-year forecasts were downgraded to 2.6%. Although the figures seem to be stable, US citizens still have to save money.
Thus, US households, who are already tired of perpetually high interest rates and ballooning inflation, are now juggling their debts. In this light, the forecast for defaulting on the minimum debt commitments over the next three months is as high as 12.9%. Some people have decided that ignoring bills is the new way to deal with the issue.People in the age group from 40 to 60 years are especially anxious. Such people have big debts and sluggish income growth.However, in March, consumer prices jumped once again. The rise was registered in the prices of gasoline, food, medical care, education, and rents. In an attempt to maintain patience, US residents continue to monitor changes in the economy, hoping to come across an encouraging piece of information.The material has been provided by portal MT5.com - www.mt5.com]]>
http://www.mt5.com/ru/forex_humor/image/101003 Thu, 18 Apr 2024 13:39:00 +0000
<![CDATA[Rise in US dollar share of global reserves casts shadow over de-dollarization]]> http://www.mt5.com/en/forex_humor/image/101000

There have been numerous occasions when analysts proclaimed an end to the dollar’s dominance. However, the US currency remains the currency of choice for international trade. Apparently, the trend toward de-dollarization is greatly exaggerated.

In 2023, the US dollar’s share of global currency reserves rose slightly, while the Chinese yuan's share shrank, Business Insider reported.

Despite an increase in calls for a lessening of the greenback's status as the chief reserve currency and central banks’ efforts to reduce the use of the US currency in international trade and financial transactions, the dollar maintains its dominance on the world stage.

The share of US dollar reserves held by central banks increased to 58.4% last year, marking the first annual increase since 2015. In physical terms, USD holdings were up by $227 billion.

Although many central banks were attempting to diversify their reserves away from the US dollar and shift to the precious metal, the share of global central bank gold reserves remained virtually unchanged in 2023. 

So, despite all the apocalyptic warnings and the growing de-dollarization trend, the dollar is still by far the dominant global reserve asset by a wide margin. At least, it is likely to remain so for a few more years.

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http://www.mt5.com/ru/forex_humor/image/101000 Thu, 18 Apr 2024 12:01:00 +0000
<![CDATA[Federal Reserve needs rock-solid evidence of easing inflation]]> http://www.mt5.com/en/forex_humor/image/100999

The Federal Reserve is worried by the fact that inflation has stuck at elevated levels for longer than expected. Something is going wrong with the plan to push inflation down using prolonged aggressive monetary tightening. At the same time, the US central bank still keeps a rate cut on its agenda at some point this year. In other words, the Federal Reserve hopes for a rate cut until the year's end but this policy move is not finally decided yet.

Meanwhile, the FOMC maintains the official funds rate in a target range of 5.25-5.5% per annum, at the highest levels since early 2001.

The latest inflation reports showed hotter-than-expected annual CPIs in January and February. So, some Federal Reserve’s policymakers reckon it is not a coincidence but a bad omen that should not be neglected. Therefore, stubborn inflation requires the central bank not to rush to cut interest rates. Other arguments for keeping interest rates at highs are a healthy labor market and robust economic growth. These factors set the stage for buoyant consumption that, in turn, accounts for inflation acceleration. The Federal Reserve needs compelling evidence that inflation is firmly going down. Only on this condition, the central bank will move on to monetary easing.

The nearest policy meeting of the US central bank is scheduled for April 30 – May 1. In the meantime, Chairman Jerome Powell is keeping markets in suspense. At the end of 2023, market participants expected a few rate cuts throughout 2024, but at present, the likelihood of at least one rate cut is fading week by week.         

 

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http://www.mt5.com/ru/forex_humor/image/100999 Thu, 18 Apr 2024 11:13:41 +0000
<![CDATA[Crypto market capitalization surges by 16.3%]]> http://www.mt5.com/en/forex_humor/image/100979
The market capitalization of the cryptocurrency market jumped by as much as 16.3%. According to a report prepared by Binance Research, March was very generous, even though investors seem to have cooled off a bit to spot Bitcoin ETFs. However, bitcoin funds unexpectedly collected over $12 billion in investments.
Meanwhile, memcoins, including Shiba Inu, Toncoin, and Dogecoin, just exploded. They jumped by 137.7%, 111.9%, and 70.1%, respectively. Bitcoin, not wanting to stay in the shadows, soared to a new all-time high of $73,000. Such a climb took place amid high market volatility.Solana and Base surged by 94% and 143%, respectively. Solana also set a new record on decentralized exchanges with a trading volume of $60 billion. It seems that memcoins are now in great demand among investors.As for the non-fungible token (NFT) market, the overall trend is upward. Total sales increased by 14.6% to $1.41 billion. Ordinals and NodeMonkes collections also showed a considerable rise.To slightly calm down investors amid the market roller coaster, Binance claimed that clients' assets are 100% protected. The material has been provided by portal MT5.com - www.mt5.com]]>
http://www.mt5.com/ru/forex_humor/image/100979 Thu, 18 Apr 2024 05:40:05 +0000
<![CDATA[JPMorgan revises US recession outlook, predicting “soft landing”]]> http://www.mt5.com/en/forex_humor/image/100967

JPMorgan has updated its economic forecast for the United States, now predicting a 55% probability of a “soft landing” rather than a recession in the first half of 2024. This optimistic shift marks a significant adjustment from their previous forecast, which had only a 30% likelihood of avoiding a downturn. Business insiders report that this positive change in outlook was influenced by a series of unexpectedly favorable economic data. Trade balances, supply indicators in the US, and global financial conditions have shown improvement, contributing to a more favorable economic projection. Previously, JPMorgan had expressed concerns about high interest rates impacting the private sector's growth, increasing the cost of debt servicing, and generally dampening economic activity. However, Jamie Dimon, the head of JPMorgan, has now adopted a more optimistic stance. He suggests that the Federal Reserve might consider holding off on rate cuts to preserve the delicate balance of confidence currently supporting the economy. The latest data, which has been more positive than anticipated, paints a picture of an economy that could maintain a “soft landing” at least through the end of the next year. This revised outlook suggests that JPMorgan's analysts see a stabilizing economy ahead.


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http://www.mt5.com/ru/forex_humor/image/100967 Wed, 17 Apr 2024 14:09:46 +0000
<![CDATA[ECB-Fed policy split could bring euro back to parity, experts warn]]> http://www.mt5.com/en/forex_humor/image/100961

According to Bloomberg, strategists at Bank of America and LBBW are concerned that a growing policy divergence between the US Federal Reserve and the European Central Bank could put significant pressure on the euro. 

The European currency is expected to dive as much as 8% and hit parity with the US dollar, weighed down by the divergence in policy paths between the two major central banks. 

Last year, the euro fell to parity with the greenback due to the energy crisis. This time around, experts attribute such a gloomy projection to the regulators’ diverging approaches to monetary policy.

Moritz Kraemer, chief economist at LBBW, is the most pessimistic expert among those surveyed. The analyst predicts that the euro could plunge to $1.01 by 2025. "The dollar would just go through parity like a hot knife through butter" if the US regulator keeps its monetary policy tight, while the ECB eases, he assumed. 

According to strategists from Bank of America, the euro could come back to parity with the dollar if the ECB delivers three quarter-point interest rate cuts. In case of a new energy shock, Europe’s common currency could come under more pressure and take another nosedive.

However, traders believe such a bleak scenario is unlikely. Markets are pricing in only a 15% chance of the euro weakening to parity with the US dollar in the next 12 months.

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http://www.mt5.com/ru/forex_humor/image/100961 Wed, 17 Apr 2024 12:49:20 +0000
<![CDATA[Moody’s and Fitch cut China’s credit outlook to negative]]> http://www.mt5.com/en/forex_humor/image/100949

Fitch has recently revised China's credit outlook to "negative." This adjustment reflects growing budgetary risks amidst the transformation of the country's economic model. Such developments prompt a critical juncture for China: the path could lead to new heights or potential setbacks. In a parallel move, Moody's had already adjusted its forecast in December 2023, indicating concerns similar to those expressed by Fitch. According to Fitch, the fiscal deficit in China is expected to rise to 7.1% of GDP in 2024, up from 5.8% in 2023. To put this into perspective, the deficit peaked at 8.6% in 2022 during the stringent COVID-19 lockdowns. Economic growth in China is also expected to slow to 4.5% next year, while public debt is anticipated to increase to 61.3% of GDP. Fitch states that this revision "reflects rising budgetary risks," suggesting challenging times ahead for the Chinese economy. In response to Fitch's revision, the Chinese Ministry of Finance expressed "deep regret," a sentiment that underscores the gravity of the situation. Meanwhile, Moody’s cautioned that this additional burden could exert fiscal pressure on the government. This series of evaluations by major credit rating agencies indicates considerable concern regarding China's economic outlook, reflecting concerns over its fiscal health and future economic stability.


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http://www.mt5.com/ru/forex_humor/image/100949 Wed, 17 Apr 2024 10:03:40 +0000
<![CDATA[Trump attacks Biden for inflation figures]]> http://www.mt5.com/en/forex_humor/image/100936
Political storms never subside, especially when it comes to the eternal battle between former and current presidents. Donald Trump, staying true to his style, decided to make fun of Joe Biden by accusing him of losing control of inflation. "Biden has totally lost control of inflation,” the former president emphasized in a post on his social media platform. “INFLATION is BACK—and RAGING!”
Trump also added that, in his opinion, Biden was long overdue to hear the famous "You're fired!" he was so fond of saying on his TV show. In addition, Trump supposes that the current leaders of the country are making it less respected in the global arena.To sum up, Donald Trump chooses to stay in the game, reminding everyone about himself with sharp remarks. Thus, politics sometimes seems to be nothing more than a dramatic performance where everyone tries to outdo each other.The material has been provided by portal MT5.com - www.mt5.com]]>
http://www.mt5.com/ru/forex_humor/image/100936 Wed, 17 Apr 2024 05:33:57 +0000
<![CDATA[India’s stock market destined for tenfold growth?]]> http://www.mt5.com/en/forex_humor/image/100927

India’s stock market could swell tenfold in mere 20 years, thus turning into an international financial hub. Bearing in mind India’s booming economy, such prospects seem realistic. According to the latest estimates, the trading volume of the domestic stock market has already surpassed $4.6 trillion. More than 6,000 companies willing to attract overseas capital went public at two major stock exchanges in India, CNBC reported, referring to Sujan Hajra, the chief economist at Anand Rathi Share and Stock Brokers, who is bullish about the benchmark stock indices.

 

Another optimistic expert polled by CNBC believes that India’s stock market has enough bullish momentum to expand to $60 trillion. This ambitious forecast is based on solid fundamentals. The Nifty 50, the benchmark index of the National Stock Exchange, surged by a whopping 20% in 2023, having outpaced Hong Kong’s main stock index. This amazing rally correlates to the 7.2% expansion in the national economic output in the same 2023. So, optimistic experts put forward weighty arguments.              

 

Remarkably, India is eager to assert itself as a high-tech leader of Asia, willing to challenge well-established heavyweight China. New Delhi cherishes a dream to become a kind of Silicon Valley for foreign high-tech giants, for example, Apple Inc. These companies were discouraged by tough economic restrictions imposed by Beijing during the COVID-19 pandemic. While a huge iPhone manufacturing facility in China was suffering losses during COVID lockdowns, India was working out plans to win over overseas investors.  

 

Indeed, India has ambitions to replace China as a more advantageous partner for electronics manufacturers and start-ups. The government is firmly on the path to its goal, enticing foreign capital and pumping up the domestic consumer market. These efforts are likely to bear fruit as India can boast a rapidly developing economy and qualified workforce. Nevertheless, New Delhi has to push harder to take over China’s high-tech leadership in Asia. Who knows? Perhaps India’s successful economy could outpace underperforming China in the not-too-distant future.       

 


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http://www.mt5.com/ru/forex_humor/image/100927 Tue, 16 Apr 2024 14:13:51 +0000
<![CDATA[Productivity slump in G20 emerging markets could hit global growth, IMF warns]]> http://www.mt5.com/en/forex_humor/image/100920

A decline in productivity across G20 emerging markets could reduce global output by three times as hard as in 2000, the International Monetary Fund estimates. 

The IMF warns that domestic shocks in the group’s developing countries could hit rich-world growth, thereby dealing a major blow to the global economy, incomparable to what was the case 20 years ago. 

According to the fund, emerging economies in the G20 are now deeply embedded in the global economy. These markets are increasingly impacting global economic output. Thus, their weak performance could create larger "spillovers" to the rest of the world, which are now comparable to those from advanced economies.  

So, G20 emerging markets, which have doubled their share of world trade and foreign direct investment over the past two decades, now play a vital role in the economic performance of their neighbors.

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http://www.mt5.com/ru/forex_humor/image/100920 Tue, 16 Apr 2024 12:27:30 +0000
<![CDATA[US economic risks reach record high since 1945]]> http://www.mt5.com/en/forex_humor/image/100911
Jamie Dimon, Chairman of the Board and Chief Executive Officer of JPMorgan Chase & Co., reported that military conflicts, such as in Ukraine and the Middle East, now threaten the world economy more than any other event since the end of World War II.
He emphasized that these events could eclipse all other risks of the past nearly 80 years.He also expressed the view that after 2022, the global community would no longer be able to enjoy the illusion of security.Prior to the conflict in Ukraine, the world was moving towards stability and security. However, this strategy has been hampered by geopolitical tensions that have created new competition between countries.What is more, economist Nouriel Roubini, known for his ability to predict financial cataclysms with an accuracy comparable to that of the weather service, foresees serious problems for the global economy in case of a full-scale war between Iran and Israel. According to his gloomy prophecies, the world could see a sharp jump in oil prices and a stagflation crisis, which will become a grave problem for central banks.If these predictions come true, the global economy will face new challenges that promise to be as strong as the current ones.The material has been provided by portal MT5.com - www.mt5.com]]>
http://www.mt5.com/ru/forex_humor/image/100911 Tue, 16 Apr 2024 10:23:25 +0000
<![CDATA[EIA raises oil price forecasts for 2024]]> http://www.mt5.com/en/forex_humor/image/100869

According to the latest update from the US Energy Information Administration (EIA), the Brent crude oil price forecast for 2024 has been set at $88.55 per barrel. This represents a modest $1.55 increase from their previous prediction of $87 per barrel, indicating an adjustment in line with global trends of rising values. Further, the EIA has adjusted its outlook for 2025 as well, anticipating that Brent prices will slightly decrease to $86.98 per barrel. This nuanced adjustment mirrors the expectations set by seasonal variations often observed in commodity markets. In addition to pricing forecasts, the EIA projects that US oil production will escalate to 13.21 million barrels per day in 2024, a clear sign of robust industrial capacity and strategic planning within the sector. The agency anticipates an even greater output in 2025, aiming for 13.72 million barrels per day, underscoring a confident outlook for the domestic energy production capacity. Meanwhile, Alexander Dyukov, CEO of Gazprom Neft, has presented a broader range for the 2024 oil prices, estimating them to be between $80 and $100 per barrel. This forecast reflects the inherent volatility and speculative nature of oil markets, where market players continuously adapt to evolving economic landscapes. 


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http://www.mt5.com/ru/forex_humor/image/100869 Mon, 15 Apr 2024 15:04:58 +0000
<![CDATA[Size of election fund ≠ popularity]]> http://www.mt5.com/en/forex_humor/image/100861

Incumbent US President Joe Biden has already raised more than $90 million for the presidential race. Donald Trump lags behind his rival and managed to collect $66 million. Despite the modest fund for the presidential campaign, the Republican candidate has been winning favor among voters in several states and even in tiny American Samoa. Moreover, some political analysts recognize him as a frontrunner in the presidential race in 2024.

 

Interestingly, Democrat Joe Biden lacks this popularity despite the support from former Presidents and his party fellows. At the latest rally in New York with the participation of Barack Obama and Bill Clinton, Joe Biden managed to win over voters who allocated $26 million.

 

Malek Dudakov, a political scientist and expert in US domestic policy, also says that the size of an election fund does not always correlate with public sentiment. Joe Biden is losing popularity and going down in the ranks of opinion polls.

 

Remarkably, Donald Trump is the first former US president who faced federal criminal charges and underwent impeachment twice. Besides, he still claims that he won the 2020 election.   

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http://www.mt5.com/ru/forex_humor/image/100861 Mon, 15 Apr 2024 10:30:04 +0000
<![CDATA[US to hit Russia with more sanctions]]> http://www.mt5.com/en/forex_humor/image/100857

The US Treasury Department has reaffirmed its commitment to further global pressure on key cogs in Russia’s military industry. The United States would impose new sanctions every time the Russian economy feels comfortable with the previous restrictions, US Treasury Deputy Secretary Wally Adeyemo told a Senate hearing.

The US-led global sanctions coalition seeks to choke off Russia’s access to key inputs for its military-industrial complex, thereby weakening it. According to Adeyemo, Washington intends to hit the country with fresh sanctions to "throw sand in the gears" of the Russian military as it adapts to the previous punitive measures.

Thus, the deputy secretary of the Treasury Department called on the US and its allies to introduce more economic penalties to hobble Russia's arms production.

Notably, the Western countries ramped up anti-Russian sanctions after Moscow launched a special military operation in Ukraine. However, the economic restrictions caused pain not only for Russia but also for Europe and the United States, as gasoline and food prices skyrocketed in their territories. At the same time, Russian President Vladimir Putin repeatedly claimed that the Russian economy would successfully cope with sanctions pressure, adding that such a hostile policy pursued by the West could deal a crushing blow to the global economy. "In effect, these steps are aimed at worsening the lives of millions of people," Putin said.

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http://www.mt5.com/ru/forex_humor/image/100857 Mon, 15 Apr 2024 10:18:03 +0000
<![CDATA[Shell weighs listing move from London to New York]]> http://www.mt5.com/en/forex_humor/image/100851

Major oil and gas company Shell is considering quitting the London Stock Exchange and moving its primary stock listing to New York, The Telegraph reported.

Such a decision stems from concerns about investor apathy on the London Stock Exchange. According to the company management, Shell shares are undervalued. As of April, the energy giant has a market capitalization of $230 billion, while its rivals, Exxon Mobil and Chevron, are valued at $480 billion and $300 billion respectively.

Earlier, Shell announced massive layoffs. In an effort to reduce operating costs by $2 billion to $3 billion, the company eliminated at least 20% of jobs in its team responsible for making deals.

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http://www.mt5.com/ru/forex_humor/image/100851 Mon, 15 Apr 2024 07:52:11 +0000
<![CDATA[China's foreign currency reserves surge, defying expectations]]> http://www.mt5.com/en/forex_humor/image/100832

China's foreign currency reserves have witnessed an unexpected surge for the second consecutive month, challenging financial forecasts and accumulating to $3.246 trillion in March, a 0.6% increase from the previous month. This rise contradicts analysts' predictions, who had anticipated a decrease to $3.21 trillion, leaving some to reevaluate their forecasts. Despite the yuan experiencing a slight decline of approximately 0.5% against the dollar, China's currency abundance celebration continues. The total reserve volume marked its highest point since December 2021 by the end of the first quarter. Additionally, the value of China's gold reserves also saw significant growth, increasing by more than $12 billion within a month. February also showcased a notable increase in China's currency reserves, growing by 0.2% and once again surpassing the skeptical outlooks of financial experts. This ongoing trend has left many pondering how China consistently manages to defy economic currents.


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http://www.mt5.com/ru/forex_humor/image/100832 Fri, 12 Apr 2024 12:36:37 +0000
<![CDATA[JPMorgan: economic apocalypse canceled in US]]> http://www.mt5.com/en/forex_humor/image/100822

On the back of the unprecedented aggressive monetary tightening of the Federal Reserve, analysts sometimes unveil forecasts of a recession in the US. In practice, occasional dismal metrics cannot be treated as precursors to a full-blown recession. Indeed, some indicators warned of economic woes, but the US central bank was confident about a soft landing. 

Experts at JPMorgan known for accurate predictions spotted the green shoots of a recovery in the manufacturing sector in September 2023. Their expectations have come true as the manufacturing PMI eventually climbed over the threshold mark of 50 points, separating expansion from contraction.  

JPMorgan believes that a recession will no longer pose a threat to the US economy by 2025. They reckon that a revival in the manufacturing sector is a good omen for the broader economic recovery. US industry clicked into gear amid robust consumption that accounts for the lion’s share of national economic output. As consumers are willing to spend money, such buoyant demand will, in turn, boost domestic manufacturing. 

Amazingly, the US economy has shown remarkable resilience in the face of stubborn inflation and extremely high borrowing costs. JPMorgan offers convincing arguments that the economic apocalypse is likely to be canceled.    


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http://www.mt5.com/ru/forex_humor/image/100822 Fri, 12 Apr 2024 11:28:50 +0000
<![CDATA[Thailand to distribute digital cash to boost economy]]> http://www.mt5.com/en/forex_humor/image/100810

The Thai government has announced a plan to distribute 10,000 baht (approximately $270) to each citizen over the age of 16 as a digital deposit, aiming to stimulate domestic consumption and invigorate the economy. Slated for the fourth quarter of 2024, the initiative, as stated by Prime Minister Srettha Thavisin, intends to funnel a total of $13.67 billion into the economy. The move is anticipated to significantly boost local spending. Under the scheme, recipients are required to spend their digital currency within a 6-month period, exclusively at businesses located within a 4-kilometer radius of their homes. This constraint is designed to promote local economic growth and encourage residents to support neighborhood businesses. To access the digital funds, Thai citizens will need to download a specific application or use a personal code linked to their national identification cards, integrating technology into the disbursement process. The Prime Minister anticipates visible outcomes from this campaign by early next year. However, critics argue that addressing structural economic issues would be a more effective approach to solving the country's economic challenges than digital cash giveaways. Skepticism aside, the government's novel approach to economic stimulus is drawing attention both domestically and internationally. The initiative is part of a broader trend of innovative economic solutions being explored worldwide, such as Zimbabwe's recent decision to adopt a new gold-backed currency to tackle hyperinflation, setting a fixed exchange rate of 13.5 ZiG units to one US dollar. Both Thailand and Zimbabwe's efforts highlight a global shift towards unconventional methods in tackling economic challenges.


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http://www.mt5.com/ru/forex_humor/image/100810 Fri, 12 Apr 2024 09:00:47 +0000
<![CDATA[Zimbabwe launches new gold-backed currency]]> http://www.mt5.com/en/forex_humor/image/100807

Implementing effective solutions for socioeconomic development is a daunting challenge. Economics is widely regarded as a nonexperimental science. However, the current environment forces some governments to resort to economic experiments.

Thus, Reserve Bank of Zimbabwe Governor John Mushayavanhu unveiled the new gold-backed national currency called ZiG, short for  Zimbabwean gold.  

Reportedly, all reserves of the Zimbabwean dollar will be converted into the newly introduced currency, which is anchored to foreign currency and precious metal reserves. The exchange rate set by the bank is 13.5 Zimbabwean gold per US dollar.

Given that the country is suffering from hyperinflation, the official exchange rate for one unit of US currency is about 22,500 Zimbabwean dollars. The black market exchange rate can be as high as 36,000 Zimbabwean dollars. 

The country faced uncontrolled hyperinflation last summer after the government made a number of ineffective policy decisions. However, Finance Minister Mthuli Ncube and President Emmerson Mnangagwa chalked it up to private business, the stock exchange, banks, Western sanctions, and even one of Africa's largest insurance companies. 

Notably, the Zimbabwean dollar has been setting negative records since 2007. The lowest exchange rate was recorded in November 2008, when inflation in the country peaked at an astounding 79.6 billion percent.

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http://www.mt5.com/ru/forex_humor/image/100807 Fri, 12 Apr 2024 08:07:17 +0000
<![CDATA[US urges China to scale back its overproduction]]> http://www.mt5.com/en/forex_humor/image/100798
In a significant diplomatic move, US Treasury Secretary Janet Yellen flew to Guangzhou, China, to discuss the issue of excessive production and its global impact. The backdrop of this visit is the observable surge in Chinese manufacturing output across sectors such as electric vehicles, batteries, solar panels, and semiconductors, which, according to US officials, has crossed sustainable limits. In her discussions, Yellen highlighted concerns that the extensive production capabilities developed by China not only exceed domestic needs but also surpass global market absorption capacities. Such overproduction could destabilize the international trade equilibrium and potentially backfire on China itself by flooding markets with products, thereby undermining global economic stability. Over the course of her visit, spanning from Friday to Monday, Yellen engaged in a series of meetings to convey the potential repercussions of China’s current industrial strategy. The talks were aimed at fostering a mutual understanding that sustainable production levels are beneficial not just for global markets but for China's long-term economic health as well. Meanwhile, China appears to be playing its own game. President Xi Jinping, seemingly unfazed by the criticism, has ordered increased investments in technological sectors. This move suggests a disregard for external critiques, emphasizing China's commitment to technological advancement. Despite the existing factories operating at just over 50% capacity, subsidies continue to flow, and new facilities are being constructed at a rapid pace, underscoring China's ambition for widespread personal electric vehicle ownership. American officials believe that China should focus on developing its domestic demand and supporting households rather than flooding the world with inexpensive goods. This stance suggests a call for a more nuanced approach to economic strategies, amidst growing tensions on the global stage that underscore the complex dialogue between two of the world's economic powerhouses.The material has been provided by portal MT5.com - www.mt5.com]]>
http://www.mt5.com/ru/forex_humor/image/100798 Thu, 11 Apr 2024 15:04:09 +0000
<![CDATA[China’s overproduction raises concern among Western countries]]> http://www.mt5.com/en/forex_humor/image/100793

As China's real estate sector grapples with a downturn and consumer demand wanes, one might expect a dip in the nation's export activities. Contrary to expectations, Chinese factories have ramped up mass production for international markets, causing a stir among Western countries, Business Insider reports. The surge in goods from China has sparked significant concern in the West, suggesting these are not merely everyday items but perhaps indicators of an overproduction issue threatening to overwhelm global markets. China appears to be attempting to mitigate its overproduction dilemma by distributing its goods globally, yet the international market seems unprepared for such abundance. This scenario has prompted US Treasury Secretary Janet Yellen to visit China to discuss the issue of over-manufacturing. China's solution to the overproduction problem has been to initiate global sales with discounts, with solar panels emerging as a leading export product. The abundance of these panels has led some to consider innovative applications, such as converting garden fences into mini-power stations. This flood of goods is causing consumers worldwide to reconsider the potential of integrating solar panels into larger projects, like roofing. Janet Yellen's trip to China, aimed at addressing the issue of excess capacity, marks her as one of many US officials to visit the country under President Biden's administration. Her participation in an event organized by the American Chamber of Commerce in Guangzhou will likely include discussions on balancing China's production with global demand. Yellen has voiced concerns over China's manufacturing capacities, which significantly exceed both domestic demand and the planet's ability to assimilate Chinese products. This issue is causing apprehension not only in the US but also across Europe, Mexico, Japan, and beyond. As China shifts focus from low-cost manufacturing and real estate to "green technologies," it seems poised to flood the market with solar panels, electric vehicles, and lithium-ion batteries. However, it appears Chinese consumers are not ready to spend as before, and factories are challenged to sell their goods without incurring losses. The concern over China's export strategy is not limited to the US. The European Union is also striving to protect its production in the chip and electric vehicle sectors, where competition with China is particularly intense. The global economy may be on the cusp of a new era where the mantra shifts from "who produced more" to "who produced just right."


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http://www.mt5.com/ru/forex_humor/image/100793 Thu, 11 Apr 2024 08:33:02 +0000
<![CDATA[Analysts foresee threefold surge in Solana]]> http://www.mt5.com/en/forex_humor/image/100781

Analysts at CoinCodex predict an impressive threefold surge in the value of Solana within a month. Experts are sure that the cryptocurrency token could demonstrate eye-popping performance and skyrocket to $612.5 by early May, surpassing its all-time high by 135%. 

Although technical indicators are showing a neutral market situation, the Fear and Greed Index, a measure of investor sentiment, is currently at 78. This indicates that the market is experiencing strong bullish momentum. Notably, the last time investors greedily rushed to buy Solana, the blockchain could not handle the load. On April 4, 75% of transactions failed due to the surge in memecoin trading activity.

Over the last 30 days, the Solana exchange rate has increased in 60% of the trading sessions marked by significant volatility of 9.3% per day. Roller-coaster trading has been on full display in recent weeks.

Since the start of the year, Solana has been up by 78%, outdoing the 64% rally in Bitcoin. Experts attribute such a stunning result to the popularity of meme tokens, which appear to be the main catalyst for economic developments today. Therefore, now is the perfect time to buy Solana, CoinCodex analysts summed up.

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http://www.mt5.com/ru/forex_humor/image/100781 Wed, 10 Apr 2024 13:47:34 +0000
<![CDATA[US IPO market clicking into gear]]> http://www.mt5.com/en/forex_humor/image/100780

The US IPO market is gaining momentum after its hibernation. Analysts at Bloomberg made this conclusion, though they hesitate to predict how many companies will venture to be listed as a publicly traded company in Q2 2024.

The two momentous events took place in March this year when Astera Labs Inc., a provider of semiconductor-based connectivity solutions for cloud and AI infrastructure, and forum social network Reddit Inc. launched IPOs on a stock exchange. Their successful debut on Wall Street did not happen by chance.

Other high-tech companies decided to follow suit. The highly-anticipated events in the next quarter will be IPOs of Rubrik Inc., a cloud data management and data security company, and its rival UL Solutions Inc.

Investors are inspired by the amazing performance of Astera Labs and Reddit. Indeed, Astera shares zoomed up by a stunning 90% since its first trading day on Wall Street. Reddit shares have rallied by 40% since then. No wonder, investors are waiting for the next IPOs of high-tech companies with bated breath.    

Meanwhile, analysts and investors are discussing potential gains and risks. Only time will tell whether the US IPO market will again capture investors’ attention for long or take a back seat.  


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http://www.mt5.com/ru/forex_humor/image/100780 Wed, 10 Apr 2024 12:35:29 +0000
<![CDATA[Mega-rich pump up their wealth despite challenges]]> http://www.mt5.com/en/forex_humor/image/100756

On April 2, 2024, global media company Forbes unveiled the 38th annual rating of the ultra-rich. The twenty business heavyweights possess a total wealth of $2.48 trillion. 

Bernard Arnault, the kingpin of the Louis Vuitton Moët Hennessy business empire, has settled at the top rank for a second year straight. Despite global challenges and market jitters, luxury brands still enjoy buoyant demand. So, Bernard Arnault’s fortune has swollen to $223 billion.

High-tech entrepreneurs Elon Musk and Jeff Bezos currently occupy the second and third lines. Competing for leadership, they sometimes swap ranks. 

Mark Zuckerberg dropped out of the top 10 a couple of years ago. However, he leapfrogged a dozen of his rivals, boasting the biggest one-year jump in revenue. Eventually, the high-tech mogul won the 4th rank as his net worth was estimated at $177 billion.

Oracle founder Larry Ellison was downgraded by one rank and placed on the 5th line. Warren Buffett, Bill Gates, and other business stars follow in the descending order.

To sum up, the US has again turned out to be the country with the most super-rich citizens.   


The material has been provided by portal MT5.com - www.mt5.com]]>
http://www.mt5.com/ru/forex_humor/image/100756 Tue, 09 Apr 2024 15:06:06 +0000