Cum Clave analysis N.17 preview.
Never asmuch as in this historical moment is it appropriate to act on all markets, concentrating attention where the materials are most suitable for the supply chain. We have always said since the beginning of this pandemic, at the beginning, that the password was to negotiate with old suppliers and quickly study others. From our recent survey, a very serious inability to act has emerged which has affected the psychology of many entrepreneurs, finance has naturally taken advantage of it by increasing its positions on the market in the correction phase, in the most classic of operations.
We prefer to call it a game of fear.
We do not see a recession in China despite many rushing to say otherwise.
Forecasts for second quarter GDP growth were around 5% with economists based in mainland China naturally indicating all the most optimistic forecasts.
The Chinese economy is restarting much earlier than the main economies in Europe and the United States, some prospects seem to have worsened. The contraction recently reported for the first quarter was only a few tenths of a point less than the median forecast of a 6.5% contraction.
Firms are unwilling to produce and flood inventory in the second quarter as demand in the rest of the world collapses.
China is gearing up to conquer new markets and consolidate others (Europe, Middle East and Africa). As for the USA, they are studying new maneuvers, given that the axis of corporate economic power has moved. Anyone will have to deal with the Chinese market.
The United States wants…..
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