U.S. Archives - Page 11 of 11

September 14, 2023September 12, 2025

Excessive radiation fears for iphone 12

France ban Apple iphone 12

According to news reports, France has banned the A pple iPhone 12 because it emits too much electromagnetic radiation, which could be harmful to human health.

The French watchdog (ANFR) said that the iPhone 12’s specific absorption rate (SAR), which measures the rate of radio frequency energy absorbed by the body, was above the legal limit of 4.0 watts per kilogram in tests simulating the phone being held in the hand or kept in a pocket.

Dispute

Apple disputed the tests and said that the iPhone 12 was certified by multiple international bodies and compliant with all global radiation standards. The French digital minister said that Apple had two weeks to respond and fix the issue, or else he would order a recall of all iPhone 12 devices sold in the country.

The minister also said that France would share its findings with other regulators in the European Union, which could lead to a wider ban of the phone.

France ban Apple iPhone 12 due to excessive radiation fears

What is electromagnetic radiation?

Radiation from mobile phones is a type of electromagnetic radiation that is emitted by cell phones and cordless phones when they send and receive signals. Electromagnetic radiation is a form of energy that travels in waves or particles through space.

It can be classified into two types: ionizing and non-ionizing radiation. Ionizing radiation has high energy and can damage DNA, which may increase the risk of cancer such as; x-rays, radon, and cosmic rays. Non-ionizing radiation has low energy and cannot damage DNA directly – such as; radio waves, microwaves, infrared, visible light, and ultraviolet light.

Cell phone radiation

Cell phones use radiofrequency (RF) waves, which are a type of non-ionizing radiation, to communicate with cell towers and other devices. RF waves have frequencies ranging from 0.7 to 80 GHz, depending on the generation of the cell phone (2G, 3G, 4G, or 5G). The human body can absorb some of the RF energy from cell phones, which may cause some heating to the area of the body where the phone is held (e.g., the ear and head). However, it is suggested this heating is not enough to raise the core body temperature or cause any harmful effects.

Research

There has been a lot of research on whether cell phone use can cause health problems, such as cancer, in humans. However, it has been reported that the evidence so far is not conclusive and does not show a clear link between cell phone use and cancer risk. There could be a link but we do not know 100%… yet?

Some studies have suggested that there may be a small increase in the risk of certain types of brain tumors (such as acoustic neuromas) for people who use cell phones for a long time or frequently. However, other studies have not found any consistent evidence to support this.

The incidence of brain and central nervous system cancers has not changed significantly during the time that cell phone use has increased dramatically. Therefore, more research is needed to understand the possible effects of cell phone use on human health.

September 14, 2023September 12, 2025

U.S. inflation ticks up from 3.2% to 3.7% according to August data release

Latest U.S. inflation figures

The latest inflation figures for the U.S. show that the annual inflation rate rose to 3.7% in August 2021, up from 3.2% in July 2021. This was mainly driven by a sharp increase in energy prices, which jumped up 10.5% over the last month. Gas (petrol) prices accounted for more than half of the increase in the overall inflation rate.

Core inflation

However, core inflation, which excludes the volatile food and energy sectors, slowed down to 4.3% in August 2021, down from 4.7% in July 2021. This suggests that the Federal Reserve’s ’11’ rate hikes are having some effect on cooling the inflationary pressures in the economy. Some sectors, such as used cars, medical care services and airfare, saw price decreases in August 2021.

Will the Fed keep interest rates unchanged at its next meeting on September 20, 2021, as we wait to see the full impact of its previous rate hikes on the economy?

However, the Fed may still raise interest rates later this year if inflation remains persistently above its target of 2%. Higher interest rates could introduce more volatility to the U.S. economy and potentially trigger a recession.

July U.S. inflation data here

September 7, 2023September 12, 2025

Japan’s moon launch carrying lunar lander and X-ray telescope

Japan launched a rocket on 7th September 2023 carrying an X-ray telescope that will explore the origins of the universe and a small lunar lander.

The launch of the HII-A rocket from Tanegashima Space Centre in southwestern Japan was shown live by the Japan Aerospace Exploration Agency (JAXA).

Thirteen minutes after the launch, the rocket put into orbit around Earth a satellite called the X-Ray Imaging and Spectroscopy Mission, or XRISM, which will measure the speed and makeup of what lies between galaxies.

That information helps in studying how celestial objects were formed, and hopefully can lead to solving the mystery of how the universe was created, JAXA reports.

In cooperation with NASA, JAXA will look at the strength of light at different wavelengths, the temperature of things in space and their shapes and brightness.

Smart

Also aboard the Japanese rocket is the Smart Lander for Investigating Moon, or SLIM, a lightweight lunar lander. The Smart Lander reportedly won’t make lunar orbit for three or four months after the launch and would likely attempt a landing early 2024, according to the space agency.

Japan launched a rocket on 6th September 2023 carrying an X-ray telescope that will explore the origins of the universe and a small lunar lander.

Going to the moon has fascinated humankind for decades. Under the U.S. Apollo program, astronauts Neil Armstrong and Buzz Aldrin walked on the moon in 1969.

Only four nations have successfully landed on the moon, the U.S., Russia, China and India.

August 30, 2023September 12, 2025

Bitcoin rallies as court rules in favour of Grayscale over the SEC in crypto ETF case

Court rules SEC wrong

The price of bitcoin surged Tuesday 29th August 2023 after the U.S. Court of Appeals ruled that the Securities and Exchange Commission (SEC) was wrong to deny crypto investment giant Grayscale permission to convert its popular bitcoin trust into an ETF.

Bitcoin jumped around 7% following the ruling to $27,852. The move lifted other cryptocurrencies as well as crypto equities higher.

Grayscale

Grayscale’s lawsuit against the SEC has been closely watched by investors and other industry participants as a key catalyst that would shake up a market governed by low volatility and liquidity.

Earlier this month, bitcoin trading volatility fell to its lowest level in more than four years as investors had been waiting on the sidelines for more regulatory clarity on crypto activity .

Several bitcoin futures ETFs have already been approved in the U.S.

Stablecoin regulation — ‘Shackles being removed from crypto regulation paving way for easier crypto trading’

Court ruling

‘The denial of Grayscale’s proposal was arbitrary and capricious … The Commission failed to adequately explain why it approved the listing of two bitcoin futures ETPs but not Grayscale’s proposed bitcoin Exchange Trade Product (ETP),‘the court said in the ruling. ‘In the absence of a coherent explanation, this unlike regulatory treatment of like products is unlawful. We therefore grant Grayscale’s petition for review and vacate the Commission’s order‘.

Tuesday’s ruling may increase the chances that the SEC will approve other bitcoin ETF applications, including that of BlackRock, whose filing in late June 2023 drove one of bitcoin’s big rallies this year, as well as Fidelity, Invesco and many others.

A U.S. bitcoin ETF would provide a way to get exposure to bitcoin without having to hold it, which would invite retail and institutional investors as well as wealth managers into the market.

A spokesperson for the SEC said it’s ‘reviewing the court’s decision to determine next steps‘.

‘Today’s decision reaffirms that a bitcoin ETF in the U.S. is a matter of when, not if’, said the global head of asset management at Galaxy, which filed with Invesco for its bitcoin ETF. ‘In order for digital assets to continue to flourish, they must be accessible to all investors. We believe that the ETF structure can enable greater access to and transparency across cryptocurrency investing, and truly help further democratize the asset class‘.

Dark cloud for crypto finally lifting?

The ruling also comes as a relief to many crypto market traders who have been frustrated by the SEC, particularly under Chair Gary Gensler, and its insistence on regulating by enforcement.

The crypto industry has long sought out clarity in rules businesses can apply to establish and build long-lasting, compliant companies. The U.S. regulatory crackdown on crypto in 2023 – which includes SEC enforcements and a lawsuit against the biggest U.S. crypto exchange Coinbase and also its case against XRP Ripple has been a dark cloud over the market.

Lawsuit filed June 2022

Grayscale initiated its lawsuit against the SEC in June 2022 after the agency rejected its application to turn its bitcoin trust, better known by its ticker GBTC, into an ETF. The company decided to pursue the ETF, which would be backed by bitcoin rather than bitcoin derivatives, after the SEC approved ProShares’ futures-based bitcoin ETF in October 2021.

The ruling faced multiple delays but the SEC ultimately rejected the application last summer, citing failure by Grayscale to answer questions related to concerns about market manipulation and investor protections.

August 29, 2023September 12, 2025

Why buy U.S. stocks when yields are high?

At 4.33%, the 10-year Treasury yield in the U.S. is at its highest in 16 years. That represents a risk-free, long-duration asset with relatively high returns and this is challenging the stock market.

Why should traders invest in stocks that may not return as much, or just slightly more and take unecessary risks, when there is an asset class that guarantees around 4% return or slighlty more?

Cash is king?

Cash is now yielding 5% in the U.S., short term bonds are yielding 5% plus, so equities for the first time in a long time, have actually got some competition.

Typically stocks if they do well, are likely to return more than a risk-free asset, precisely because it isn’t certain stocks will rise. That’s called the equity risk premium, a return that’s supposed to compensate stock investors for the chance that they might lose money. But, as the premium is below 1% now. Historically, it’s been between 2% and 4% – meaning stocks are looking much less attractive than Treasuries.

Harder job for the Fed?

Another potential issue that could crop up with high Treasury yields is that it could make the Federal Reserve’s job tougher. During the recent Jackson Hole gathering, the Fed head has indicated that more interest rate hikes are still high possibility.

But don’t panic just yet… this is likely a pullback phase of a bull market analysts suggest. That is, it’s still too early to be bearish on stocks.

Yardeni Research president Ed Yardeni is reported to have said that the market is ‘going to hang in there’ and ‘a year-end rally will bring the S&P 500 back to something like 4,600‘.

That implied an increase of almost 5% in stocks – while not certain – would give Treasuries a run for their money again.

August 25, 2023September 12, 2025

U.S. mortgage rates are high! Could they reach 8%?

The latest U.S. mortgage rates are the highest they have been in decades.

The average 30-year fixed-rate mortgage rose to 7.23% in the week ending 25th August 2023, up from 7.09% the week before, according to latest bank reports from U.S. This is the highest level since June 2001, when it was 7.24%.

The rate on a 30-year fixed mortgage increased to 7.31% in the week ended 18th August 2023, according to Mortgage Bankers Association data. This is the highest level since late 2000.

The 30-year fixed mortgage rate averaged 7.16% with 0.68 points as of August 16, according to U.S. News. This is up from 7.09% with 0.7 points the previous week. The adjustable-rate mortgage increased to 7.6%.

Inflation driving interest rates up

The rise in mortgage rates is driven by indications of ongoing economic strength and inflation pressures, which have also pushed up Treasury yields and the Federal Reserve’s interest rate expectations.

Higher mortgage rates make home buying more expensive and reduce the affordability of homeownership. They also discourage existing homeowners from selling or refinancing their homes, which contributes to the low inventory of available homes for sale.

As a result, home sales have declined and home prices have soared in many markets. Will interest rates touch 8%?

August 19, 2023September 12, 2025

An August U.S. stock market stumble, or more?

August typically a rocky month

The U.S. stock market has experienced a 5.6% slide for the S&P 500 index over 15 trading sessions through 17th August 2023 and levelling off in the last trading day of that week.

This is about as bad as August typically gets, as August is a rocky month with low volume and high volatility. Some of the reasons for the pullback include the rise in the 10-year Treasury yield, the strengthening of the U.S. dollar, and the signs of a slowing Chinese economy.

Pullback temporary for August?

However, some analysts argue that the pullback will likely prove to be temporary and not turn into a serious market rout. It has been suggested that the bull run isn’t quite over just yet, and that a 10% ‘pullback’ was on the cards.

Analysts also suggest that the rise in yields would need to threaten a serious shift or there would need to be an additional shock to cause a larger selloff.

NASDAQ

NASDAQ drops some 7% in one month from 19th July – 18th August 2023

However, some suggest that the market is showing signs of stability, as the speed of the surge in the 10-year yield often occurs near the end of a selling cycle for equities. Investors should watch for indicators such as oil prices, wage pressures, and inflation expectations to gauge the market sentiment.

The S&P 500 and the Dow levelled off the week at the close of trading Friday 18th August 2023.

The NASDAQ did score its best first half of the trading year since 1983 January to June 2023 so a pullback was likely to happen.

August 17, 2023September 12, 2025

Singapore among world’s first to agree stablecoin crypto regulation – the race is on…

Big news for the crypto industry

Singapore’s financial regulator has reportedly said it had finalised rules for a type of digital currency called ‘stablecoin’, placing it among some of first the regulators worldwide to do so.

Stablecoins are a type of digital currency designed to hold a constant value against a fiat currency. Many claim to be backed by a reserve of real-world assets, such as cash or government bonds.

Reserves that back stabelcoins must be held in low-risk and highly-liquid assets. They must equal or exceed the value of the stablecoin in circulation at all times, the rules say. The stablecoin market is valued at around $125 billion, with two tokens – Tether’s USDT and Circle’s USDC – dominating roughly 90% of the market cap value. Stablecoins are broadly unregulated around the world.

The Monetary Authority of Singapore’s (MAS) framework requirement

Reserves that back stabelcoins must be held in low-risk and highly-liquid assets. They must equal or exceed the value of the stablecoin in circulation at all times
Stablecoin issuers must return the par value of the digital currency to holders within five business days of a redemption request.
Issuers must also provide ‘appropriate disclosures‘ to users, including the audit results of reserves.

These rules will apply to stablecoins that are issued in Singapore and mimic the value of the Singapore dollar, or of any G10 currencies, such as the U.S. dollar.

Last year, the collapse of a so-called algorithmic stablecoin named UST put this type of stablecoin in the crosshairs of regulators. Unlike USDT and USDC, UST was governed by an algorithm and did not have real-world assets like bonds in its reserves.

Singapore’s stablecoin framework puts it among one of the first jurisdictions to have such rules. In June, the U.K. passed a law that gives regulators the ability to oversee stablecoins, though there are no concrete rules yet. Hong Kong is meanwhile undergoing a public consultation on stablecoins and seeks to introduce regulation next year.

What is a stablecoin

A stablecoin is a type of cryptocurrency that tries to maintain a stable value by being pegged to another asset, such as a fiat currency, a commodity, or another cryptocurrency. Stablecoins aim to offer the benefits of cryptocurrencies, such as decentralisation, security, and transparency, without the drawbacks of high volatility and price fluctuations.

Stablecoins can be used for payments, remittances, trading, and storing value. However, stablecoins also face some challenges and risks, such as regulatory uncertainty, technical issues, and trust issues.

There are different ways to create and manage stablecoins, depending on the mechanism used to stabilize their value.

Main types of stablecoins

Fiat-backed: These stablecoins are backed by a reserve of fiat currency, such as the US dollar or the euro, held by a third-party entity. The stablecoin issuer promises to redeem the stablecoin for the fiat currency at a fixed ratio. Examples of fiat-backed stablecoins are Tether (USDT), USD Coin (USDC), and TrueUSD (TUSD).

Commodity-backed: These stablecoins are backed by a reserve of physical commodities, such as gold, silver, or oil, held by a third-party entity. The stablecoin issuer promises to redeem the stablecoin for the commodity at a fixed ratio. Examples of commodity-backed stablecoins are Paxos Gold (PAXG), Tether Gold (XAUT), and Digix Gold (DGX).

Crypto-backed: These stablecoins are backed by a reserve of other cryptocurrencies, such as Bitcoin or Ethereum, held in a smart contract. The stablecoin issuer uses over-collateralization or algorithmic adjustments to maintain the stability of the stablecoin. Examples of crypto-backed stablecoins are Dai (DAI), sUSD (SUSD), and BitUSD (BITUSD).

Algorithmic: These stablecoins are not backed by any reserve, but instead use an algorithm to control the supply and demand of the stablecoin. The algorithm adjusts the supply of the stablecoin according to the market conditions and the target price. Examples of algorithmic stablecoins are Basis Cash (BAC), Empty Set Dollar (ESD), and TerraUSD (UST).

What is ‘crypto’

Crypto has attracted a lot of attention in recent years. Crypto is short for cryptocurrency, which is a digital or virtual currency that uses cryptography to secure and verify transactions. Crypto can also refer to the underlying technology that powers cryptocurrencies, such as blockchain.

Some examples of popular cryptocurrencies are Bitcoin, Ethereum, Ripple ( XRP)and Cardano (ADA).

Cryptocurrencies have many advantages over traditional currencies, such as decentralisation, transparency, anonymity, and lower fees. However, they also face some challenges, such as volatility, regulation, security, and scalability. Crypto enthusiasts believe that cryptocurrencies have the potential to revolutionise the world of finance and beyond.

Some examples of popular stablecoins are Tether, USD Coin and Binance USD.

August 17, 2023September 12, 2025

Asia promotes Crypto clarity as U.S. muddles through with uncertainty

Clear crypto rules

Asia is promoting clear crypto rules at a time when large businesses are facing regulatory uncertainty in the U.S.

Some Asian countries that have taken the lead in crypto regulation include Singapore, Hong Kong, Japan, and South Korea. They have proposed or implemented frameworks that protect investors, prevent money laundering, and encourage innovation in the crypto industry.

Lack of clarity in U.S.

In contrast, the U.S. has been singled out for its lack of clarity and consistency in crypto regulation. The SEC for instance and other agencies have different views on how to classify and regulate crypto assets – take alook at the case with XRP and ripple of recent years.

Some industry leaders have threatened to leave the U.S. or sued the regulators over their actions. There is also a debate in Congress that could level crypto transactions with a tax.

Attractive

As a result, some analysts have suggested that Asia could become more attractive to investors and innovators in the crypto industry, as it offers more certainty and stability in the regulatory environment.

However, there are also challenges and risks involved in crypto regulation, such as balancing security and innovation, ensuring compliance and enforcement, and dealing with cross-border issue.

Welcome to the birth of digtal currency.

August 11, 2023September 12, 2025

U.S. to ban some U.S. investments in China tech sector

The U.S. will ban American investment in some areas of China’s high-tech sector, including artificial intelligence, adding to strained relations between the two superpowers.

U.S. firms will also be invited to disclose what investments they make in China in high-tech sectors.The much-anticipated move gives the U.S. government new power to screen foreign dealings by private companies. The U.S. said the measure would be narrowly targeted. However, it is poised to further chill economic relations between the world’s two largest economies. China has reportedly said it was ‘very disappointed‘. The U.S. ‘has continuously escalated suppression and restrictions on China‘. He added that White House claims that the US was not seeking to hurt China’s economy or separate the two countries did not match its actions. ‘We urge the US side to honour its words‘.

Biden order

The order by U.S. President Biden formally kicks off the push to introduce rules to restrict, even prevent American businesses from investing in firms from ‘countries of concern‘ that are active in advanced semiconductors, quantum computing and certain areas of artificial intelligence.

The government will also require U.S. firms to notify the Treasury Department of investments in firms working on a wider range of artificial intelligence and semiconductor technology.

AI tech — U.S. restriction on AI related tech knowledge to China

The rules are not expected to apply to ‘portfolio’ investments, in which firms invest passively in companies via the stock market, but are focused on active investments made by private equity and venture capital businesses. They will now enter a public ‘reflection’ period, which is expected to further clarify what kinds of investments are off-limits. The rules are not expected to go into effect for sometime yet. This new ‘order’ is quite a big deal.

In a briefing with reporters, senior administration officials said the measure was a ‘national security action, not an economic one‘. They said the U.S. remained committed to open investment.

Investment control

Controls on outbound investment are rare among advanced economies, currently present only in Japan and Korea, according to a 2022 report.

In the U.S., prior restrictions on China trade have relied on limiting sales of sensitive technology by U.S. firms and screening Chinese investments in American companies. The Trump administration had also barred investments in firms tied to China’s military.

The latest measure has widespread support in Washington, where it is seen as fixing a regulatory gap concerning financial flows that risks allowing American money and know-how to to flow into China.

International support

The U.S. has been trying to build international support for the investment curbs with some signs of success.

Prime Minister Rishi Sunak in May 2023 said the UK government would consider curbs on outbound investment; the European Commission put forward a proposal focused on investments in sensitive technologies earlier this summer. It is not clear how significantly the order would affect flows of investment.

China was the number two destination for foreign investment in 2022, behind the U.S., but many reports suggest money flowing into the country from the U.S. and elsewhere has dropped sharply as geopolitical relations sour. In the UK, a recent survey by the Institute of Directors found that one in five UK importers had already switched investments away from the country due to geopolitical tensions.

China has responded to the curbs with its own rules, including limits on exports of some critical minerals used to make computer chips.

Gallium and Germanium considered critical elements required in the production of microchips

Treasury Secretary Janet Yellen, who visited China in July 2023 in an attempt to ease tensions, said last month she did not think the coming curbs would have a fundamental impact on the investment climate in the country.

Will these measures likely damage the U.S. in the future by escalating issues and restricting the U.S. from other shared advancements in technology – only time will tell.

Tech’ rivalry

U.S. and China are two of the world’s leading powers in artificial intelligence (AI) and semiconductors, which are essential components for many AI applications such as self-driving cars, smart phones, and cloud computing. However, the two countries have also been engaged in a fierce competition and rivalry over these technologies, as they seek to gain an edge in innovation, security, and economic growth. Some of the issues that have caused tensions between U.S. and China include trade disputes, intellectual property theft, cyberattacks, human rights violations, and military expansion.

AI chips

AI semiconductors are designed to perform complex calculations and tasks that require high levels of intelligence, such as natural language processing, computer vision, and machine learning.

These chips can be classified into two types: general-purpose chips that can run various AI algorithms, and specialized chips that are optimized for specific AI functions or domains.

The race is on…

August 10, 2023September 12, 2025

U.S. inflation July 2023 up 0.2% to 3.2%

Up slightly for the first time in a year

U.S. consumer prices rose a mild 0.2% in July, but the rate of inflation rose for the first time in more than in a year in a sign it’s going to take a while to get the cost of living fully under control. But a steady slowdown in inflation over the past year could keep the Federal Reserve on the sidelines when officials consider whether to raise interest rates again at their next meeting in September.

The yearly rate of inflation, rose to 3.2% from to 3% in the prior month. It’s the first increase in 13 months, though inflation has eased considerably since hitting a 40-year high of 9.1% in 2022. The core rate of inflation, which omits volatile food and energy costs, also rose 0.2% last month.

The increase in core inflation over the past year slowed slightly to 4.7% from 4.8%. That’s the lowest rate in almost two years. The Fed doesn’t ignore food and energy prices, but the central bank views the core rate as a better predictor of inflation trends. Even so, the core rate of inflation remains well above the Fed’s 2% goal.

Rapid rate rise

Over the past year the U.S. central bank has been raising interest rates rapidly to try to slow the economy and dampen inflation, but it’s unclear if the Fed will continue to do so at its next meeting in September 2023. Financial markets put the odds close to zero.

Inflation has slowed sharply in the first half of 2023, but further gains this year are unlikely to come as easy. U.S. gas (petrol) prices are on the rise again. U.S. rent and house prices are still going up. And labour costs are increasing more than 4% a year, making it harder for the Fed to achieve its inflation target.

Robust economy

The U.S. economy, for its part, is still expanding at a surprisingly robust pace. Strong consumer demand could keep prices elevated, especially for popular services such as hotel rentals, dining out and entertainment.

Whether inflation is still rising too fast for the Fed to necessate another rate hike in September remains to be seen, for now.

August 8, 2023September 12, 2025

China’s exports take a dive!

China’s exports plunge

According to latest figures the country’s trade fell more sharply than expected in July 2023, as both global and domestic demand receded amid the pandemic and ongoing tensions with the United States.

China’s exports fell by 14.5% in July 2023 from a year ago, the biggest drop since February 2020, while imports dropped by 12.4%, according to Chinese data. This was much worse than the 5% decline in both exports and imports analysts were expecting.

Poor trade performance

Some of the reasons for the poor trade performance are the rising costs of raw materials, the global shortage of semiconductors, the Covid-19 outbreaks in some regions, and the U.S. sanctions on some Chinese companies.

China’s trade with the U.S., its largest trading partner, fell in the first seven months of the year. The trade slump has added pressure on China to provide more support for the economy, which has lost momentum after a strong recovery in late 2020 and early 2021.

China’s trade drop July 2023 more than expected

China’s trade situation is also closely watched by other countries, as it reflects the health of the global economy and demand for goods. Some analysts have warned that China’s trade slowdown could signal a broader weakening of consumer spending in developed economies, which could lead to recessions later this year. China’s trade data also has implications for inflation and monetary policy, as lower import prices could ease inflationary pressures and allow central banks to keep interest rates low.

China’s export to the U.S. and EU down

China’s exports to the U.S. plunged by 23.1% year-on-year in July 2023, while those to the European Union fell by 20.6%, CNBC analysis of customs data showed. Exports to the Association of Southeast Asian Nations fell by 21.4%, according to the data. Chinese imports of crude oil dropped by 20.8% in July from a year ago, while imports of integrated circuits fell by nearly 17%.

China’s imports from Russia fell by around 8% in July 2023 from a year ago, the data showed.

A slowdown in U.S. and other major economies’ growth has dragged down Chinese exports this year. Meanwhile, China’s domestic demand has remained subdued.

Growth areas

Among the few higher-value export categories that saw a significant increase in the first seven months of the year were: cars, refined oil, suitcases and bags. And for imports: paper pulp, coal products and edible vegetable oil were among the categories seeing significant growth in the January to July period from a year ago.

August 2, 2023September 12, 2025

Fitch downgrades U.S. credit rating to AA+ over fiscal concerns

Must try harder

The U.S. has lost its top credit rating from Fitch Ratings, one of the three major credit rating agencies, due to its recent political gridlock over the debt ceiling and deteriorating fiscal situation. How much does this matter?

Fitch re-calculated the U.S.’s long-term foreign-currency issuer default rating (IDR) from AAA to AA+ early August 2023, reportedly saying it was because of a ‘steady deterioration in standards of governance‘ and a lack of confidence in fiscal management.

Downgrade

The downgrade comes despite the resolution of the U.S. debt ceiling crisis in June 2023, when Congress agreed to suspend the $31.4tn borrowing limit until January 2025. Fitch warned that the U.S. faces serious long-term fiscal challenges, such as rising debt levels, unfunded social security and Medicare obligations, and the real possibility of a recession.

Disagree

Janet Yellen, the U.S. Treasury Secretary and the White House strongly disagreed with Fitch’s decision, calling it ‘arbitrary’ and ‘bizarre‘. They stated that the U.S. economy is fundamentally strong and that Treasury securities remain the world’s safest and most liquid assets. They reportedly suggested that Fitch’s calculation model is flawed and outdated.

Downgrade rattles markets

The downgrade is unlikely to have a significant impact on the U.S.’s borrowing costs or reputation, as it still retains its triple ‘A’ rating from the other two major credit rating agencies, Standard & Poor’s and Moody’s.

However, it could increase market volatility and pressure the U.S. to address its fiscal imbalances. But according to Janet Yellen these do not exist and there is no problem…?

August 2, 2023September 12, 2025

Buffet Indicator & U.S. Stock Market

The Buffet Indicator is a valuation multiple used to assess how expensive or cheap the aggregate stock market is at a given point in time. It was proposed by investor Warren Buffett in 2001, who called it ‘probably the best single measure of where valuations stand at any given moment‘ . It compares the total value of all publicly traded securities in the U.S. to the U.S. GDP .

The current value of the Buffet Indicator is 181%, (July 2023) – which suggests that the U.S. stock market is reportedly worth $48.37 trillion, while the U.S. GDP is $26.74 trillion.

This ratio is 50.50% above the historical trend line, suggesting that the stock market is overvalued relative to GDP. Buffett warned that if the ratio approaches 200%, ‘you are playing with fire‘.

Buffett Indicator: $48.85T ÷ $26.91T = 182%

Does it Matter?

The Buffett Indicator expresses the value of the U.S. stock market in terms of the size of the U.S. economy. If the stock market value is growing much faster than the actual economy, then it may be in a bubble.

Buffet Indicator Movement Above and Below Trend Line

August 1, 2023September 12, 2025

Euro Zone GDP & Inflation Improves in July 2023

EU Inflation 5.3% July 2023

Euro zone inflation fell in July, and new growth figures showed economic activity picking up in the second quarter of this year, but economists still fear a recession.

Headline inflation in the EU was 5.3% in July, according to preliminary data released end of July 2023, lower than the 5.5% registered in June. However, it still remains substantially above the European Central Bank’s 2% target.

EU GDP

GDP growth accelerated in the second quarter, expanding by 0.3%, higher than the 0.2% expected by analysts.

July 27, 2023September 12, 2025

Ripple effect! XRP surges after U.S. judge rules it is not a security in… some instances

SEC Ruling – July 2023

XRP, the native token of the blockchain company Ripple, soared more than 60% on Thursday after a U.S. judge delivered a major victory to the firm in its legal battle with the Securities and Exchange Commission (SEC).

The SEC had sued Ripple in December 2020, alleging that it had raised over $1.3 billion through the sale of XRP in an unregistered securities offering. The SEC claimed that XRP was an investment contract that gave buyers the expectation of profits based on Ripple’s efforts.

However, the Judge ruled that XRP was not a security “on its face” and that some aspects of its sale did not violate the federal securities laws.

The judge drew a distinction between the sales of XRP to institutional investors, which she said could constitute investment contracts, and the sales of XRP to the general public on exchanges, which did not.

Argument

The judge also denied Ripple’s argument that the SEC lacked jurisdiction over XRP transactions because they were not domestic, and agreed with the SEC that the Howey test, a four-pronged criteria to determine whether an asset is a security, applied to cryptocurrency transactions.

The ruling was welcomed by Ripple and its supporters, who argued that XRP was a utility token that facilitated cross-border payments and did not depend on Ripple’s efforts for its value.

Ripple’s chief legal officer, reportedly tweeted: “A huge win today – as a matter of law – XRP is not a security. Also, a matter of law – sales on exchanges are not securities. Sales by executives are not securities. Other XRP distributions – to developers, charities, and employees- are not securities.”

A lawyer representing over 19,000 XRP holders who intervened in the case, reportedly called on U.S. exchanges to relist XRP in solidarity with the decision.

Crypyo boost

The ruling also boosted the sentiment in the broader crypto market, as it suggested that the SEC did not have unlimited authority over digital assets and that some tokens could escape the securities classification.

Crypto-related stocks such as Coinbase and crypto-coins such as ADA, HBAR, BITCOIN & ETH surged following the news.

More to come?

However, the case is not quite over yet, as the SEC said it would continue to review the decision and pursue its claims against Ripple for the sales of XRP to institutional investors.

The SEC also responded to the judge’s ruling by saying that it did not change its position that XRP was a security and that it would seek to prove that Ripple violated the securities laws in certain circumstances.

The outcome of the case could have significant implications for the crypto industry, as it could set a precedent for how other tokens are regulated and how other lawsuits are resolved.