As Beijing’s crackdown on the country’s wealthy continues under president Xi Jinping’s “common prosperity” policy, an increasing number of China’s affluent are moving their money to Singapore and setting up family offices. Singapore’s attractiveness stems from its large Chinese-speaking population, lack of wealth tax, and relative proximity. The trend started in 2019 following the economic disruption caused by mass protests in Hong Kong. Further crackdowns by the Chinese government on China’s education and tech industries have spurred further movements of assets out of the country.
US Yield Curve Inverts For First Time Since August 2019
On Tuesday, for a brief moment, the yield on the 10-year US Treasury note moved below that of the 2-year note. This is known as an inversion of the yield curve and is a warning sign that has predicted almost every recession in the past. While long-term Treasury bond interest is conventionally higher than the short term’s an inversion occasionally happens when the market turns pessimistic, especially during volatile times – like an ongoing war, pandemic, and unprecedented inflation all happening at the same time. However, it should be noted that the yield inversion has since reversed and that bond prices are just a signal, and do not trigger recessions. For now, market reactions are mixed, and whether there will be a recession or not remains to be seen.
German Inflation Hits 40-Year High
Inflation in Germany, Europe’s largest economy, has risen to its highest rate in four decades as the Russia-Ukraine conflict has sent energy prices jumping almost 40% year on year. European Central Bank president Christine Lagarde has warned of a “supply shock” resulting from the Russia-Ukraine war, which has severely impacted energy prices since Germany relies on Russia for almost more than 30% of its crude oil, and more than 50% of its natural gas needs. Harmonised consumer prices (which also take into account residential property, unlike the CPI) in Germany have increased by 7.6%. Meanwhile, analysts warn that, if Russian energy was cut off, inflation could hit as high as 9% in Germany.
Biden to Release 1 Million Barrels of Oil a Day
US President Joe Biden has pledged to release an unprecedented 180 million barrels of oil from the Strategic Petroleum Reserve in the next six months. This is almost a third of the US’s reserves being released. While the move contradicts Biden’s election promise to combat climate change, it will aid in cooling inflation and energy prices – the latter of which has soared in response to the Russia-Ukraine conflict. Oil prices have held aboveUS$100 for much of the time since Russia’s invasion of Ukraine prompted wide sanctions against the aggressor country.
Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.
Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.
By clicking the "Acknowledge" button, you confirm that you are entering this website solely based on your initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on reverse solicitation in accordance with the laws of your home jurisdiction.
Thank You for Your Acknowledgement!
Ten en cuenta que el sitio web está destinado a personas que residen en jurisdicciones donde el acceso al sitio web está permitido por la ley.
Ten en cuenta que PU Prime y sus entidades afiliadas no están establecidas ni operan en tu jurisdicción de origen.
Al hacer clic en el botón "Aceptar", confirmas que estás ingresando a este sitio web por tu propia iniciativa y no como resultado de ningún esfuerzo de marketing específico. Deseas obtener información de este sitio web que se proporciona mediante solicitud inversa de acuerdo con las leyes de tu jurisdicción de origen.
Thank You for Your Acknowledgement!