In today’s briefing:
- US/Taiwan: Xi Calls The Shots
- Liquidity Supportive for Risky Assets in 2025 as US Treasury’s Role Becomes More Important
- Meat Prices Rise and Rise and Rise
US/Taiwan: Xi Calls The Shots
- In stark contrast to its dealings with other trade partners, Washington is firmly in the position of supplicant in its dealings with Beijing.
- This reflects not only Xi Jinping’s carefully prepared and strong hand but also Donald Trump’s seeming determination to strike a deal with China at more or less any cost.
- Increasingly, therefore, Taiwan stands to be “a pawn in a bigger game”.
Liquidity Supportive for Risky Assets in 2025 as US Treasury’s Role Becomes More Important
- Despite the inaction by the Fed during 2025, policy easing by foreign central banks has produced a supportive global liquidity backdrop for risky assets.
- During 2025, sovereign bond yields in advanced economies have been rising by varying degrees in advanced economies due to a higher term premium being demanded by bond investors.
- Liquidity conditions in the US financial system are being increasingly influenced by fiscal policy conduct due to the rise of collateral-backed lending underpinned by Treasury securities.
Meat Prices Rise and Rise and Rise
- FAO’s meat price index hit a new all-time high of 127.3 points, up 1.2% from its previous peak in June, as strong import demand from China and the United States boosted beef and sheep meat prices, the agency said.
- U.S. beef imports have climbed after drought led to a decline in the domestic cattle herd.
- Looking at the latest futures prices, live cattle, feeder cattle and even lean hogs remain in a strong uptrend with a significant backwardation remaining within the forward curve.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
