Expectation of Fed ra上海乌托邦s an over-reaction

Herd instinct is the human nature to follow the crowd and act collectively – and market expectation always does not change smoothly but t

上海乌托邦ends to over-react to new information. The current market expectation of the US Federal Reserve’s rate cuts is a case in point.

On June 20, the latest meeting of the Fed’s policy-setting Federal Open Market Committee shrugged off the market’s high expectation of rate cuts and gave no clear policy signal confirming a cut.

We believe the market had overreacted in forming its expectation of rate cuts after the Fed swiftly adopted a dovish tone from the end of last上海乌托邦

year. Specifically, we believe market expectation – it has formed since May – of a change in policy stance, as well as the timing and degree of rate cuts, may not fully materialize.

We will elaborate on this now. It should be noted the misconceived expectation of Fed rate cuts could ind上海乌托邦

uce a drastic reversal in investor sentiment and asset price fluctuations, if the Fed’s moves miss expectation.

Firstly, the market may have overestimated the degree of the Fed’s policy stance change. A clear rate cut signal may not emerge until the end of this month.上海乌托邦

According to Bloomberg, the Fed funds futures market has recently priced in a 98.5-percent chance that the Fed will lower rates at least once this year.

上海乌托邦品茶微信However, the Fed’s earlier forward guidance only indicated the end of monetary policy n

ormalization, which does not necessarily point to the beginning of a rate cut cycle. Also, the Fed h

as removed the word “patient” from the latest FOMC meeting statement but did not confirm a rate-cut stance.

We believe that because of the following two reasons, the Fed is still on cautious lookout, and t

here will not be any clear rate cut signal or plan until the next FOMC meeting at the end of this month.上海乌托邦品茶微信

Externally, the Fed is expected to stand pat until trade dispute uncertainties ease, to give itself an advantage in its game with the US Administration.

The Fed would put itself in an unfavorable position if it initiated a rate cut before majo上海乌托邦品茶微信

r uncertainties over the China-US trade dispute are removed, because the pre-emptive move may enc

ourage the US Administration to escalate the trade dispute, which will in turn pose a dilemma to the Fed.

That’s because any escalation in trade tensions will, on the one hand, d

ssipate and even offset the easing boost from rate cuts and force the Fed to accelerate the上海乌托邦品茶微信

rate cut pace. On the other hand, the escalation could further fuel imported inflation, which will significantly reduce the

Fed’s room for rate cuts. The Fed will then face a policy-making dilemma of whether to further cut rates.

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eijing to keep investigating C上海会所品茶微信boat collisio

Beijing said on Mo上海会所品茶微信nday it will continue to investigate thoro

ughly and carefully the collision of Chinese and Filipino boats in the

South China Sea, and handle the incident properly with Ma

nila based on facts and in a cooperative and friendly manner.

A Chinese fishing boat and a Filipino fishing boat collided accident

ally in the waters near Liyuetan in the South China Sea

early Monday morning, Foreign Ministry spokesman Lu Kang said.

Extending China’s condolences to the Filipino fishermen who expe

rienced the collision, Lu emphasized the collision wa

s an accident, and said China and the Philippines have communicated several times over the incident.

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Earlier, the Kenyan gove上海会所品茶微信d revealed that th

medical personnel 上海会所品茶微信who were sent to Sierra Leone and Liberia in 2015 will man points of entry to detect Ebola

cases. The team that returned in June last year was part of the African Union mission in Ebola in West Africa.

Contingency plans

Contingency plans had long been put in place in Uganda for possible imported Ebola cases, according to WHO. The gov

ernment has vaccinated about 4,700 health workers in 165 health facilities, including the one where the dead boy was treated.

“This is a sobering development that everyone has been working to avoi

d and highlights the complexity of the Ebola outbreak in the Democratic Republic of the

Congo,” Robert Redfield, director of the country’s Center for Disease Control and Prevention, said in a statement.

Redfield had issued a warning, a week ago, that the outbreak in the DR Congo could spread outside the country. He ad

ded that there was a risk of the current supply of vaccines running out before more is produced.

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It is the first time in eight years that a Chinese defense

 minister has participated in the event.Building a community with a shared future for mankind is the right path forward and the

trend of the times amid growing uncertainty and instability around the world, he said.

“No approaches to regional issues should resort to military blocs, nor should they undermine the interests of others,” Wei said.

He called out the United States for its military support to Taiwan and naval operations in

the South China Sea, saying they have undermined China’s national sovereignty and territorial integrity.

China resolutely follows the path of peaceful development and this commitment is en

shrined in the constitutions of both the Communist Party of China and the People’s Republic of C

hina, Wei said. “If this is not convincing enough for some people, nothing will be.”

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The 5G tech will not only improve the way people liv

 live and work, but also accelerate China’s social digital transformation as well as build key competence amid the uphill battle in the global industry,” Huang said.

“There are huge investment opportunities for 5G industries, including materials, chips,

main equipment suppliers, base stations, antenna, cloud computing, internet of vehicles and the internet of things,” Hu

ang said. “5G will bring historic opportunities for China’s economic and social development.”

A new 5G research institute has also been established in Yizhuang, Beijing on Wednesday.

According to a new report by Global System for Mobile Communications Associ

ation, China is set to become the largest 5G market in the globe, with 460 million 5G users by 2025.

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Still, the victory of the Brexit Party could prompt the Cons

servatives to choose a new leader to campaign on a “no-deal” Brexit. But

this has little or no chance of being accepted by the British parliament, which means the B

rexit stalemate will continue until there is a general election or a second referendum. In any case, the normally pr

ofree trade voice of the UK will be reduced in the new European Parliament.

Beijing‘s first bikeway, which connects Huilongguan in Changping district and Shangdi in

Haidian district for cyclists, has finished the colored pavement and is about to open this week.

The bicycle-only road has a maximum speed of no more than 15 kilom

eters per hour and is forbidden to entry by pedestrians, electric bicycles and other vehi

cles, according to traffic rules on the bikeway released by the Beijing Municipal Commission of Transport.

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to see that with the right structure, we can get tons of be

Lu Yong, vice-president of Huawei Technologies Co, said China’s d

igital economy has thrived on the basis that China has built the world’s largest 4G network.

“5G is not just a faster 4G. It will fundamentally reshape how enterprises run busine

sses and overhaul a wide range of industries by using data to create more value,” Lu said.

Foreign Ministry spokesman Lu Kang reiterated on Monday that China

has been holding a consistent position in trade frictions with the United States, say

ing the differences should be resolved through friendly consultations and negotiations.

Lu’s remarks came as US President Donald Trump said in Japan that the US isn’t ready to make a trade deal with Ch

ina, but he’s leaving open the possibility that the two nations could strike an agreement someday.

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The two countries should make further contributions to

promoting a new type of international relationship and building a community with a shared future for mankind, Xi said.

Mourao extended President Bolsonaro’s greetings and bes

t wishes, and delivered a letter from the Brazilian president to Xi.

The new Brazilian administration led by Bolsonaro attache

s great importance to relations with China, Mourao said.

Brazil speaks highly of China’s important contributions to promoti

ng global economic growth and considers China to be a reliable and stable partner, he said.

Brazil would like to connect the country’s investment partners plans with the Belt and

Road Initiative and expand cooperation with China in areas including trade, techno

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Xinjiang to launch up to 100 trains for tourists

As tours to Xinjiang Uygur autonomous region have become increasingly popular among tourists from home and abroad, local

authorities have announced a plan recently to launch as many as 100 special trains for tourists from May to October.

The local railway authorities will step up cooperation with other part

s of the country to boost Xinjiang’s tourism development, according to Huang Ti

ngfen, deputy general manager of Xinjiang Railway Tourism Development Group.

The trains will provide easier access to both the southern and northern parts of Xinjia

ng, said Huang. It will also be more convenient for Xinjiang residents to travel to other parts of the country.

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In Forbes’s ranking, 309 of the world’s top 2,000 largest publ

 public companies are from the Chinese mainland and Hong Kong.

The United States has 575 companies, the most among the 61 countries and regions involved in the ranking.

Japan is third-largest contributor, with 223 companies joining in the list.

This year marks the 17th release of the Global 2000 ranking since it was first published by Forbes in 2003, when the Unite

d States was home to 776 companies in the list while the Chinese mainland and Hong Kong only had 43.

Industry-wise, banks and diversified finance make

up most of the list, with 453 companies appearing on it, followed by tech ind

ustry and construction industry, with 184 and 123 companies on the list, respectively.

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