Pelosi’s trip to Taiwan is another blow to China’s yuan – CNN | Omd Cialis

What’s happening: Pelosi’s high-profile visit to Taipei, where on Wednesday she pledged Washington would “not abandon” the democratically-ruled island, fueled fears of a further deterioration in relations between China and the United States, the world’s two largest economies stoked .

The flare-up in tensions has fueled concerns among investors that the situation could escalate from here, either intentionally or unintentionally. China’s ruling Communist Party claims Taiwan as its own, although it has never controlled it. China’s offshore yuan eased slightly this week.

“This is something that investors have known about for a while as a potential flashpoint,” Manik Narain, head of emerging markets cross-asset strategy at UBS, told me. “It was very difficult to trade it. We don’t know if it will be a hot spot tomorrow or in five years.”

A big unknown: if China launched a military confrontation, would Western countries impose tough economic sanctions like they did when Russia invaded Ukraine? What would that mean for foreign investors if they did?

“You can see what happened to the Russian markets,” Narain said. “Investors don’t want to make the same mistake twice.”

Extracting China from the global economy would be a near-impossible task given its integration into supply chains, the importance of the market to large Western companies, and the country’s manufacturing power. But the threat of such a significant geopolitical collapse looms.

That’s not the only factor weighing on China’s currency. With US interest rates rising, emerging markets are struggling to attract investment, making parking money in riskier locations less appealing.

There are also questions about China’s economic growth. Factory activity fell in July, according to data released this past weekend. A global recession would hurt the country’s robust export machine. And domestic demand remains shaky as the country grapples with the aftershocks of recent Covid-19 lockdowns in major cities and a vulnerable real estate sector.

“At a time when exports are likely to run out of steam soon due to weaker global demand, we believe China’s domestic demand is unlikely to recover any time soon given the ongoing Covid restrictions and recent housing market shocks.” , Bank of America economist Helen Qiao and Miao Ouyang said in a research note this week.

As the economy falters, the People’s Bank of China is on track to loosen policy while most other central banks are tightening. This could increase downward pressure on the yuan.

“The pace at which the US hikes interest rates could be crucial,” Narain said, noting the potential for sharp “divergence.”

The fear of inflation is not burdening the gig economy

Demand for Ubers and Airbnbs is at an all-time high as consumers buy shared apartments and ridesharing services despite concerns about the rising cost of living.

The Latest: Airbnb announced Tuesday that it booked 103.7 million bookings between April and June, a new quarterly record and a 24% jump compared to the same period in 2019. The surge in bookings generated 2 $.1 billion and a profit of $379 million.

The company also benefited from higher average daily rates. At $164, the price was slightly down compared to the first three months of 2022, but up 40% compared to the same period in 2019.

Still, shares are down 6% in premarket trading after the company’s outlook turned out worse than Wall Street expected.

Uber’s revenue hit $8.1 billion last quarter, more than double the year-ago figure. It also reported positive cash flow for the first time ever, meaning it earned more money from its operations than it spent.

Rising sharply: The number of consumers and drivers using Uber is “at an all-time high,” the company said, noting a shift toward spending more on services like eating out and attending live events. About 122 million people use the platform every month, up 21% year-on-year.

Uber also said it’s making strides in registering more drivers to reduce wait times, with registrations in the United States up 76% year over year.

“We’re not where we want to be, but they’re certainly moving in the right direction,” CEO Dara Khosrowshahi told analysts.

Do you know this statistic: Wait times in the United States now average four and a half minutes, instead of between five and six minutes.

Uber shares rose 19% on Tuesday. Rival Lyft also rode the wave, rising more than 16%.

The pandemic is still pounding dating apps

People might ditch their sweatpants, drop Zoom, and hop on Ubers, just like they did before Covid-19 hit the scene.

But some singles hold back. Match Group — the world’s largest owner of dating apps with a portfolio that includes Tinder, Hinge and OkCupid — said Tuesday the pandemic is still affecting user behavior and hurting business.

“While people have generally emerged from lockdown and entered a more normal way of life, their willingness to try online dating products for the first time has not yet returned to pre-pandemic levels,” said CEO Bernard Kim in a letter to investors.

Engagement from existing users has increased. But recruiting new employees remains a challenge.

Investor insight: Its revenue rose 12% year over year to $795 million in its most recent quarter, beating Wall Street’s expectations. It also posted a surprise operating loss of $10 million. Shares are down 21% in premarket trading. They are already 42% lower this year.

Kim said the company will try to turn the tide by making changes to its product and adding more features like livestream videos. He also sees huge growth potential in Asia, citing last year’s acquisition of South Korean company Hyperconnect.


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Today as well:

  • OPEC+ announces whether to boost oil production in September.
  • The ISM Non-Manufacturing Index, which tracks the US services sector, will be released at 10am ET.

Tomorrow: The Bank of England is expected to hike interest rates by half a percentage point, the biggest hike since 1995.

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