Category: Flash News

On May 9, US President Donald Trump is urging members of Congress to raise the tax rate on some of the richest Americans to offset other tax cuts in his landmark economic plan. According to informed sources, Trump’s proposal includes establishing a new 39.6% tax rate bracket for individuals with an annual income of at least $2.5 million or couples with a combined income of $5 million. The current highest tax rate for individuals is 37%. According to a source, Trump made this request on Wednesday when calling House Speaker Mike Johnson and reiterated his desire to cancel the carried interest tax benefits enjoyed by venture capital and private equity fund managers.

On May 9th, the Indian Integrated Defense Staff Headquarters reported that Pakistan has used missiles and drones to attack multiple locations in the Indian controlled Kashmir region. Subsequently, the Indian Ministry of Defense also issued a statement stating that the international borders of Jammu and Kashmir were attacked by Pakistani drones and missiles, and that the threat had been resolved using kinetic and non kinetic weapons in accordance with established standard operating procedures. There are currently no reports of casualties or material damage. Regarding the Indian side’s claim, Pakistani Minister of Information and Broadcasting Tarar stated during a live television broadcast that the information is untrue. The Pakistani Ministry of Foreign Affairs also issued a statement denying it.

On May 9, on the occasion of commemorating the 80th anniversary of the victory of the Chinese People’s War of Resistance against Japanese Aggression, the Great Patriotic War of the Soviet Union and the founding of the United Nations, China and Russia issued a joint statement on further deepening the China Russia comprehensive strategic partnership of coordination in the new era. Both sides pointed out that certain countries and their allies use unilateral and illegal restrictive measures such as trade and financial restrictions to significantly increase tariffs and other non market competition methods, which have a negative impact on the world economy, undermine fair competition, obstruct international cooperation to address common challenges faced by all mankind, including hindering the maintenance of global food security, energy security, and the achievement of the United Nations Sustainable Development Goals. Both sides condemn the despicable acts of bypassing the United Nations Security Council, violating the United Nations Charter and international law, obstructing justice, and violating World Trade Organization rules. Both sides believe that the risks of global trade fragmentation, discriminatory measures, and increasing violations of trade restrictions are increasing. Individual countries have declared excessive tariffs on their trading partners under various pretexts, seriously infringing on the legitimate rights and interests of all countries, violating the rules of the World Trade Organization, seriously damaging the rules based multilateral trading system, and seriously impacting the stability of the global economic order. Both sides firmly oppose illegal unilateral bullying measures and unilateral protectionism measures that seriously undermine the international economic and trade order and have a negative impact on the global industrial and supply chains, such as the indiscriminate imposition of tariffs and the abuse of export controls.

On May 8th, Galaxy Securities Research reported that on May 7th, the State Council Information Office held a press conference on “a package of financial policies to support market stability and expectations”, which mentioned “reducing the interest rate of personal housing provident fund loans by 0.25 percentage points” and introduced the acceleration of the introduction of a series of financing systems that are compatible with the new model of real estate development, to help continuously consolidate the stable situation of the real estate market. This time, the loan interest rates related to home purchases have been lowered, and it has been mentioned that incremental financing support policies will be introduced, including real estate development, personal housing, urban renewal, and other aspects. The research report believes that with the continuous promotion of policies, the threshold for residents to purchase houses is expected to be lowered, and the rigid and improved housing needs of residents are expected to be further supported. Under the support of policies, the allocation value of the real estate sector is highlighted. The research report believes that top real estate companies demonstrate excellent operational and management capabilities with financial advantages, and their market share is expected to further increase.

On May 8th, as the world’s largest distribution center for Christmas products, Yiwu in Zhejiang Province exports nearly 80% of the global Christmas product market. At present, Yiwu International Trade City is gradually entering the peak season for ordering Christmas products, and merchants and production enterprises are actively preparing for the season, striving to put these Christmas products on shelves in Europe, America, and other countries and regions in November. A business owner of Yiwu International Trade City said, “This is related to the international market. This year, customers placed orders earlier than in previous years. In previous years, we started shipping around April, but we started shipping in February and March this year. Our factory orders have been scheduled until early June

On May 8th, Huatai Securities Research Report pointed out that although the overall soft data in the United States has weakened recently, the hard data remains stable, and there is significant uncertainty in tariff policies and the outlook for unemployment/inflation. The May meeting showed that the Federal Reserve maintains its previous wait-and-see stance and is not in a hurry to cut interest rates. It plans to wait for the situation to become clear before taking action, and the decision to cut interest rates depends on the balance between unemployment and inflation. Looking ahead, the Fed’s subsequent interest rate cuts will mainly depend on the trend of hard data, especially employment data. If the employment data weakens significantly before the June meeting and inflation pressure remains manageable in April and May, there is still a certain probability that the Federal Reserve will cut interest rates in June. Otherwise, the Fed’s decision to cut interest rates again may have to be postponed until July or later. We will continue to focus on changes in US tariff policies and hard data, including employment data, to assess the Fed’s interest rate cut decision.

On May 8th, the People’s Daily reported that the healthy development of China US economic and trade relations requires both sides to move towards each other. The Chinese people advocate “peace is the most precious” and “faith and harmony”, but “peace” is not an unprincipled concession, and “trust” is not a connivance of treachery. China always believes that any dialogue and negotiation must be conducted on the premise of mutual respect, equal consultation, and mutual benefit. If the US wants to solve the problem through negotiations, it must face up to the serious negative impact of unilateral tariff measures on itself and the world, acknowledge international economic and trade rules, fairness and justice, and rational voices from all walks of life, show sincerity in negotiations, and correct erroneous practices. If we say one thing, do another, or even attempt to use negotiation as a cover to continue coercion and blackmail, China will never agree, let alone sacrifice our principles and international fairness and justice to seek any agreement. History and reality have repeatedly proven that cooperation between China and the United States benefits both, while confrontation harms both. The United States should adhere to the principles of mutual respect, peaceful coexistence, and win-win cooperation, resolve their respective concerns through equal dialogue and consultation with China, jointly promote the healthy, stable, and sustainable development of China US economic and trade relations, and inject more certainty into the world economy.

On May 8th, China Post Life Insurance Co., Ltd. announced on May 7th that it had acquired China Eastern Airlines Logistics Co., Ltd. through an agreement transfer. This means that the total number of times insurance funds have been raised within the year has reached at least 13 times. The listing of insurance companies on the stock market is a vivid manifestation of long-term capital and patient capital increasing their efforts to enter the market. At the press conference held by the State Council Information Office on May 7th, a package of financial policies was released. Among them, multiple policies are related to insurance investment, including “further expanding the pilot scope of long-term investment of insurance funds” and “reducing the risk factor of insurance company stock investment”. Industry insiders believe that with the release and implementation of incremental policies, the enthusiasm of patient capital such as insurance funds to enter the market will be further enhanced, and the market space will be further expanded, which will continue to stabilize and activate the capital market.

On May 8th, Budweiser Asia Pacific reported a net profit of 234 million US dollars in the first quarter, with an estimated 234.6 million US dollars; First quarter revenue of $1.46 billion, estimated at $1.52 billion; The gross profit margin for the first quarter is 51%, with an estimated 50.3%; Adjusted EBITDA for the first quarter is $485 million, with an estimated $498 million; The adjusted pre tax profit for the first quarter is $331 million, with an estimated $343.1 million.

① At 10:00, the State Council Information Office held a press conference; ② 14:00 Germany March seasonally adjusted industrial output monthly rate, March seasonally adjusted trade account, UK April Halifax seasonally adjusted housing price index monthly rate; ③ At 3:00 pm, the Ministry of Commerce held its first regular press conference in May; ④ 19:02 Bank of England announces interest rate decision and monetary policy report; ⑤ 20:30 Initial jobless claims in the United States for the week ending May 3rd; ⑥ 22:00 Wholesale sales monthly rate in March in the United States; ⑦ 22:30 US EIA natural gas inventory for the week ending May 2nd; ⑧ 23:00 US April New York Fed 1-year inflation expectations.