Podcast Martina’s Corner, September, 5th, 2022, in English


Good morning, everybody. This is Martina’s Corner at Jores Capital on Thursday, September, 5th, 2022. Welcome to our program. We are giving you a short summary on market news, politics, economics and other world news and market outlook every Monday and Thursday.

The markets are facing a lot of uncertainties and threats. Apart from the  inflation and supply shortages, the political world with the Ukraine war and a possible attack on Taiwan by China adds to these threats.

The Chinese economy yet sees itself affected since the Covid outbreak in 2020, mainly because of its cero Covid policy and confinements in different parts of the country where ever there is an outbreak. This had a negative effect on growth perspectives already, reflects on unemployment which is at over 5% and particularly on youth unemployment which is an skyrocketing rate of over 19% and also affects the real estate market that looks troubled and could pull the stock market further down. The Shanghai Composite has lost 12% in 2022 already. Morgan Stanley expects we will see a decline of 30% in long-term demand in Chinese housing in the 10 years between 2020 and 2030. Household debt to GDP ratio that went from 17% in 2005 to 62% in 2020 and has reached pretty much levels we see in Western countries.

Warren Buffett has sold another 1.72 million BYD shares on September 1st which reduces his participation to 18.87% from 19.02% on the BYD stocks being traded on the Hongkong stock exchange, which sounds miniscule given the large participation that Buffett’s Berkshire Hathaway was holding in BYD. He had started building this position up since 2007. The share in the company had initially been 20,49% on the stocks traded in the Hongkong market, and a 7.73% counting all shares, also BYD stocks traded on the Chinese mainland. First speculations were that Buffett may not trust the Chinese stock market any longer, or not like the fact that the electric car and battery producer, that also produces batteries for Tesla, is also stretching out into other market segments like cell phone parts. Yet another possibility is that he simply liquidated some of the huge profits the stock has accumulated over the past years. We will see what will happen and if Buffett will stay mayorly invested in BYD or if he will sell the stock off progressively like he has done with PetroChina. Buffett’s sell off of PetroChina  in 2005 and by 2007, one year before the financial crisis, he had sold all his participations.

This week on the 7th September the new iPhone14 will come out so eyes will be on Apple, another big Buffett investment.

So what are the markets doing today? At the moment at 2,35am Eastern Time, 8,35 CET the US markets look pretty much unchanged with the Dow Jones Future being 0,31% up, the S&P500 future 0,23% up and the Nasdaq future 0,06% up. In the Europe the FTSE100 future is 0,23% up, the Spanish IBEX future trades 0,33% higher this morning, whereas the DAX future is 363 points, 2,78% weaker.

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See you again and have a great day!

Music by Music Unlimited at pixabay.com.  Track «This is Epic»  at shorturl.at/fSZ49