Despite FED chair Jerome Powell’s speech last week, where their shift from inflation to the job market indicated a pending rate cut, a renewed attack by Trump on the FED has left markets reeling.
Last week, the markets were ecstatic at the news of the FED’s shift to the job market. This shift indicates a potential interest rate cut, which means companies can grow faster and make more profit. The relief didn’t last long. Trump’s continued assault on the FED to do his bidding finally reaped rewards for the administration with the removal of Federal Reserve Governor Lisa Cook. This double event has markets uneasy.
“I believe markets are rattled by the mix of Trump’s intervention and Fed Chair Jerome Powell’s cautious stance at Jackson Hole. Trump’s move to oust a sitting Fed governor has rattled confidence in the institution that supports the global financial system. Investors are on edge, as the Fed’s independence is vital for market stability, and any hint of political influence sets off alarm bells globally. Political priorities rather than economic fundamentals might drive monetary policy.” – Nigel Green, CEO, deVere.
This undermines confidence in the dollar as the world’s reserve currency and is pushing investors into safe-haven markets such as gold.
There are, however, opportunities for proactive investors to take advantage of volatile markets and invest in the right assets. Speak with a financial adviser about optimising your portfolio and ensuring that diversification is paramount.
China’s electric vehicle revolution is sending a clear message to the rest of the world. Beijing has seen rapid growth in its EV auto sector due to subsidies, tax incentives and massive funding for research and development.
BYD has taken over as the world’s largest EV manufacturer. China’s aggressive push has caused rapid expansion domestically and internationally. It’s not just BYD, Nio, Li Auto, Geely, and SAIC Motors are also leading in the EV space. CATL battery maker has been laughing all the way to the bank as it supplies the rapidly expanding EV market.
China has overtaken Japan as the world’s largest vehicle exporter with 41% of sales attributed to EVs. By 2030, China is predicted to manufacture 36 million vehicles per year. That is 4 out of every ten cars built globally.
Chinese EV sales are growing, especially in Europe, where the UK and Norway now account for 10% of all car sales to Chinese manufacturers.
Please note, the above is for educational purposes only and does not constitute advice. You should always contact your adviser for a personal consultation.
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