Connect with us

Spread & Containment

Chinese Yuan Plummets As Exports Slide, Premier Warns Of “Complicated And Grave” Jobs Situation

Chinese Yuan Plummets As Exports Slide, Premier Warns Of "Complicated And Grave" Jobs Situation

More than a month ago, we wrote why with the…

Published

on

Chinese Yuan Plummets As Exports Slide, Premier Warns Of "Complicated And Grave" Jobs Situation

More than a month ago, we wrote why with the yen at risk of an "Explosive" downward spiral - which has since been confirmed - we explained why China may soon devalue the yuan, and a few weeks later when this latest prediction was again promptly confirmed, we wrote "Whispers Of Yuan Devaluation After Biggest Weekly Plunge Since 2015."

Fast forward to Monday, when China's Onshore yuan’s selloff has accelerated to levels which until recently most "experts" FX strategists (with a few exceptions) said were impossible, and after breaking 6.7 per dollar for the first time since 2020 the yuan tumbled as low as 6.7766, as Chinese exports grew at their slowest pace in nearly two years and amid the absence of support from state banks. In the onshore market, the USDCNY rose as much as 1% to 6.7321, the highest since November 2020.

Export growth in April slowed to 3.9% in dollar terms from a year earlier, compared to an increase in March of 14.7%, while imports were flat Y/Y. That’s the weakest pace since June 2020 but faster than the median estimate of a 2.7% gain in a Bloomberg survey of economists.

Despite demand from some exporters, it was not enough to stop yuan from weakening, according to three traders who spoke to Bloomberg; they also added that the lack of notable dollar selling from state-owned banks also weighed on sentiment.

That said, Beijing appears to be a bit unhappy with the latest sprint lower in the yuan, and on Monday the PBOC set the yuan’s reference rate at 6.6899 per dollar, stronger versus the median estimate of 6.6938 in a Bloomberg survey with traders and analysts. This marked the fifth straight session that the yuan fixing was set at stronger-than-expected levels.

“Investors continue to re-appraise the prospects for China’s economy and asset markets,” strategists including Chris Turner at ING Bank wrote in a note. “With industrial metals taking another leg lower, it still seems too early to call the low in the yuan.”

Meanwhile, the CFETS RMB Index, the official index of yuan versus trading partner currencies, fell 0.8% to 102.39 last week, lowest since January 14: “Considering the recent sharp decline in the CFETS RMB Index, China’s central bank is expected to step up efforts to further stabilize market expectations if necessary in the foreseeable future, including verbal guidance, state-owned banks’ dollar selloff and a few consecutive lower-than-expected USD/CNY fixings,” Qi Gao, strategist at Scotiabank, wrote in a note.

Finally, adding to the weakness, over the weekend, China's outgoing Premier Li Keqiang warned of a “complicated and grave” employment situation as Beijing and Shanghai tightened curbs on residents in a bid to contain Covid outbreaks in the country’s most important cities, sparking renewed fears of a Chinese hard landing, one which is self-induced.

Li instructed all government departments and regions to prioritize measures aimed at helping businesses retain jobs and weather the current difficulties, according to a late Saturday statement, which cited the premier’s comments in a nationwide teleconference on employment.

“Stabilizing employment matters to people’s livelihoods, it is also a key support for the economy to operate within a reasonable range,” Li said, urging businesses to resume production with Covid-fighting measures in place, while reiterating the government’s policy to promote the healthy development of internet platform companies to support employment.

The premier’s warning on employment came after the nation’s surveyed jobless rate climbed to 5.8% in March, the highest since May 2020.

Bloomberg adds that high-frequency indicators tracking jobs suggest a further deterioration in the labor market in April.

The growing Chinese gloom follows last week's warning by top leaders against attempts to question the country’s Covid Zero strategy as newly released data for April showed the lockdown-dependent approach taking a heavy toll on the economy. The rolling out of even more intense restrictions over the weekend in Shanghai and Beijing adds further to the challenges facing policymakers seeking to shore up growth.

And since it is sticking with Covid Zero, China reported a new 4,384 Covid-19 cases for May 7. Shanghai, which has been under some form of lockdown for weeks, recorded 3,975 new infections, down from 4,000-plus daily infections earlier. Beijing logged 62 new cases as authorities in the capital scramble to contain a wider spread.  Both Shanghai and Beijing increased restrictions on their residents Sunday to achieve the Covid Zero goal, with authorities in the financial hub stepping up efforts to quarantine close contacts of people testing positive for the virus.

People living in the same building of confirmed cases now also risk being transported to designated quarantine facilities, according to local residents and widely circulated social media posts about the subject. Previously, only people living in the same apartment or the same floor of positive cases would likely be considered close contacts and put under central quarantine.

Both Shanghai and Beijing increased restrictions on their residents Sunday to achieve the Covid Zero goal, with authorities in the financial hub stepping up efforts to quarantine close contacts of people testing positive for the virus.

People living in the same building of confirmed cases now also risk being transported to designated quarantine facilities, according to local residents and widely circulated social media posts about the subject. Previously, only people living in the same apartment or the same floor of positive cases would likely be considered close contacts and put under central quarantine.

Top Shanghai officials including party secretary Li Qiang have vowed repeatedly to “win the war” against the outbreak and hit the goal of achieving zero community spread in the city of 25 million residents as soon as possible. Of the nearly 4,000 cases reported for Shanghai Saturday, 11 were still found outside quarantine areas.

In Beijing, authorities on Sunday required all residents in its eastern district of Chaoyang -- home to embassies and offices of multinationals including Apple Inc. and Alibaba Group Holding Ltd. -- to start working from home. This followed an order to shut down some businesses providing non-essential services such as gyms and movie theaters in the district to minimize infections.

And while China's economy is set to continue slowing further, its monetary policy diverging from the US for the foreseeable future, the question everyone should be asking - as Albert Edwards first correctly hinted two weeks ago - is how long can US and Chinese policies diverge before something breaks?

Tyler Durden Mon, 05/09/2022 - 14:46

Read More

Continue Reading

Spread & Containment

Optimism Slowly Returns To The Tourism Sector

Optimism Slowly Returns To The Tourism Sector

Coming off the worst year in tourism history, 2021 wasn’t much of an improvement, as travel…

Published

on

Optimism Slowly Returns To The Tourism Sector

Coming off the worst year in tourism history, 2021 wasn't much of an improvement, as travel remained subdued in the face of the persistent threat posed by Covid-19.

According to the United Nations World Tourism Organization (UNWTO), export revenues from tourism (including passenger transport receipts) remained more than $1 trillion below pre-pandemic levels in 2021, marking the second trillion-dollar loss for the tourism industry in as many years.

As Statista's Felix Richter details below, while the brief rebound in the summer months of 2020 had fueled hopes of a quick recovery for the tourism sector, those hopes were dashed with each subsequent wave of the pandemic.

And despite a record-breaking global vaccine rollout, travel experts struggled to stay optimistic in 2021, as governments kept many restrictions in place in their effort to curb the spread of new, potentially more dangerous variants of the coronavirus.

Halfway through 2022, optimism has returned to the industry, however, as travel demand is ticking up in many regions.

You will find more infographics at Statista

According to UNWTO's latest Tourism Barometer, industry experts are now considerably more confident than they were at the beginning of the year, with 48 percent of expert panel participants expecting a full recovery of the tourism sector in 2023, up from just 32 percent in January. 44 percent of surveyed industry insiders still think it'll take until 2024 or longer for tourism to return to pre-pandemic levels, another notable improvement from 64 percent in January.

Tyler Durden Sat, 06/25/2022 - 21:00

Read More

Continue Reading

Government

Doctors’ Group Urges Biden Administration To End Quarantine, Vaccine Recommendations For Children

Doctors’ Group Urges Biden Administration To End Quarantine, Vaccine Recommendations For Children

Authored by Zachary Stieber via The Epoch…

Published

on

Doctors' Group Urges Biden Administration To End Quarantine, Vaccine Recommendations For Children

Authored by Zachary Stieber via The Epoch Times (emphasis ours),

A group of doctors is urging top government officials to quickly reverse recommendations that have left children in isolation for days and advice that virtually every child get a COVID-19 vaccine.

We strongly urge you to revise the CDC’s COVID-19 guidelines with regards to testing, isolation, and vaccine recommendations for children to ensure that public health policies are not doing more harm than good,” the group, Urgency of Normal, wrote in a June 21 open letter to Dr. Ashish Jha, the White House’s COVID-19 response coordinator, and Dr. Rochelle Walensky, the director of the Centers for Disease Control and Prevention (CDC).

Dr. Rochelle Walensky, director of the Centers for Disease Control and Prevention, speaks in Washington on June 16, 2022. (Joe Raedle/Getty Images)

The CDC’s guidelines say that people, including children, who are exposed to COVID-19 should quarantine for at least five days, and encourage widespread COVID-19 testing.

The agency also recommends that all children 6 months of age or older get a COVID-19 vaccine, following the recent authorization of the Moderna and Pfizer shots for kids under 5.

The doctors noted that many European countries, U.S. states, and other areas have updated COVID-19 policies to greatly reduce periods of quarantine, COVID-19 testing frequency, and forced vaccination.

They’re asking U.S. officials to adapt to a “test-to-treat” approach, which would focus on recommending vaccination and treatments to those at the highest risk from COVID-19, which are primarily the elderly and others with serious underlying health conditions.

Read more here...

Tyler Durden Sat, 06/25/2022 - 17:30

Read More

Continue Reading

Spread & Containment

This Week in Apps: Twitter Notes, Instagram age verification, Spotify’s Live Events

Welcome back to This Week in Apps, the weekly TechCrunch series that recaps the latest in mobile OS news, mobile applications and the overall app economy….

Published

on

Welcome back to This Week in Apps, the weekly TechCrunch series that recaps the latest in mobile OS news, mobile applications and the overall app economy.

The app industry continues to grow, with a record number of downloads and consumer spending across both the iOS and Google Play stores combined in 2021, according to the latest year-end reports. Global spending across iOS, Google Play and third-party Android app stores in China grew 19% in 2021 to reach $170 billion. Downloads of apps also grew by 5%, reaching 230 billion in 2021, and mobile ad spend grew 23% year over year to reach $295 billion.

Today’s consumers now spend more time in apps than ever before — even topping the time they spend watching TV, in some cases. The average American watches 3.1 hours of TV per day, for example, but in 2021, they spent 4.1 hours on their mobile device. And they’re not even the world’s heaviest mobile users. In markets like Brazil, Indonesia and South Korea, users surpassed five hours per day in mobile apps in 2021.

Apps aren’t just a way to pass idle hours, either. They can grow to become huge businesses. In 2021, 233 apps and games generated over $100 million in consumer spend and 13 topped $1 billion in revenue. This was up 20% from 2020, when 193 apps and games topped $100 million in annual consumer spend and just eight apps topped $1 billion.

This Week in Apps offers a way to keep up with this fast-moving industry in one place, with the latest from the world of apps, including news, updates, startup fundings, mergers and acquisitions and suggestions about new apps to try, too.

Do you want This Week in Apps in your inbox every Saturday? Sign up here: techcrunch.com/newsletters

Top Stories

Instagram to verify users’ ages in new test

Image Credits: Instagram

Instagram announced this week it’s testing a new set of features for verifying users’ ages in the app, including things like video selfies, vouching from adult friends and providing an ID. The tests, which will begin in the U.S., will apply to users who try to change their age to 18 or over after being previously set to under 18. These users may be trying to correct an earlier mistake or they could be teens trying to circumvent the app’s newer age-appropriate restrictions.

If users are prompted to provide an ID card, like a passport or driver’s license, Meta will store it on its servers for 30 days before deletion. If users choose the social vouching option, they’ll need at least three other adult friends to vouch for their age — and Instagram will choose a list of six people randomly who meet the criteria. Those users can’t have a new account or be vouching for others at the same time.

The company also said it’s using AI that can estimate users’ ages in video selfies. The company is working with the London-based digital identify firm Yoti which will examine the file, make an estimate, then delete the file.

Age verification is an increasingly common feature in social apps used by younger users as a result of tighter regulations. Another company catering to Gen Z users, Yubo, recently rolled out its own age estimating tech as well.

Twitter goes long form

TechCrunch broke the news that Twitter was testing a long-form writing feature called Twitter Notes. The next day after our report went live, Twitter announced it officially.

The news is one of Twitter’s more significant changes since doubling the character count from 140 to 280 characters, as it will allow users to write on Twitter directly, as if it’s a blogging platform. With Twitter Notes, users are able to create articles using rich formatting and uploaded media, which can then be tweeted and shared with followers upon publishing. The company also said it would merge its newsletter service, Revue, into Twitter Notes.

Users with access can create Twitter Notes from the “Write” link in Twitter’s navigation. For the time being, Twitter is testing Notes with a small group of writers in the United States, Canada, Ghana and the United Kingdom. The Notes can be up to 2,500 words in length.

The feature could encourage users to rely on Twitter Thread (tweetstorms) less in order to share their longer thoughts, ideas or stories with their Twitter followers, Community or Circle. It could also put an end to using a screenshot from the Notes app to tweet something longer than 280 characters. Meanwhile, Twitter Notes can tap into the potential for viral distribution that comes with posting to the platform. Like tweets, the Notes would have their own link and could be tweeted, retweeted, sent in DMs, liked and bookmarked. They can also be reported and must comply with Twitter’s rules.

It’s worth noting (ha!) that Twitter Notes also gives the company a new business and potential revenue stream as it further develops the product. The feature may allow the social platform to compete with established services, like Medium for blogging, or Substack’s newsletters.

Weekly News

Platforms: Apple

E-commerce

Image Credits: Twitter/Shopify

  • As part of its ongoing efforts to expand into e-commerce, Twitter announced a new partnership with Shopify. The deal will see Twitter launching a sales channel app that will be made available to all of Shopify’s U.S. merchants through its app store. The app allows merchants to onboard themselves to Twitter’s Shopping Manager, the dashboard offered by the social media company where sellers can access product catalog tools and enable other shopping features for their profiles. Merchants will be able to use the new sales channel app to connect their Twitter account to their Shopify admin then get set up with Twitter’s Shopping Manager and other free tools Twitter built for “Professionals.” This includes Twitter’s launch of a new feature called Location Spotlight, which allows local businesses in the U.S., Canada, U.K. and Australia to display information like their street address, contact info and operating hours directly on their profile.

Augmented Reality

  • Walmart gave its app an AR upgrade with the launch of View in Your Space, which allows customers to see home décor and furniture in their own homes. The feature will be rolled out to over 300 items on Walmart’s iOS app by early July.
  • Tim Cook may have hinted at Apple’s AR headset plans when he told a Chinese state-run news outlet to “stay tuned” to see what Apple had in store next for AR in an interview. A later investor note by Ming-Chi Kuo also suggested the new hardware could arrive as soon as early 2023.
  • IKEA launched a new in-app design experience, called IKEA Kreativ, that lets U.S. shoppers visualize furniture in their own spaces using AR and AI. The feature can also remove the existing furniture from your room so you can better imagine the changes.
  • Snap shared some data about AR shopping trends, noting that there was a 32% increased use of shoppable AR during the pandemic and that 69% of consumers believed AR was a part of shopping’s future.

Fintech

  • Coinbase is shutting down its standalone Pro service by year’s end and replacing it with Advanced Trade across its website and app. The latter offers comparable features to the Pro service, which had lowered fees to traders who interacted directly with the Coinbase Exchange order book.
  • Facebook Pay formally rebranded to Meta Pay. The change had already been announced but is now rolling out in the U.S. before expanding globally.

Social

Image Credits: Twitter

  • Snapchat announced its first accelerator program for emerging Black creators, which will see 25 selected participants receive $10,000 per month to launch their careers across a total $3 million investment.
  • Instagram has been experimenting with a new feature that would allow users to leave notes for their friends at the top of the DM inbox. The feature could help users share urgent or more important messages that could be overlooked in Stories or in messages.
  • Meta announced more ways for creators to make money on Facebook and Instagram and the expansion of other monetization tools to more creators. The company will keep paid online events, fan subscriptions, badges and its upcoming independent news products free for creators until 2024, instead of 2023, as it had said before. Meta is also testing a designated place on Instagram where creators can get discovered by brands for partnerships; will launch a way for users to subscribe to Facebook Groups even for those who have paid for access on another platform; and is expanding the Reels Play Bonus program to more creators and making Facebook Stars available to all.
  • Twitter announced the return of its developer conference, Chirp. The event was first held in 2010 but was then canceled the next year. At the time, the event had been a reflection of Twitter’s attitude toward its developer community in general — disorganized and constantly in flux as the company’s business initiatives changed. Times have since changed and Twitter has been trying to woo back developers with its new API, even by promoting some apps on Twitter itself.

Messaging

  • Telegram said it now has over 700 monthly active users and announced Telegram Premium, a subscription that gives users access to exclusive features like doubled limits, 4 GB file uploads, faster downloads, exclusive stickers and reactions, improved chat management and more.

Photos

Dating

  • Match-owned Hinge added a new feature that allows users to share their “Dating Intentions” — meaning whether they’re looking for long-term, short-term, open relationships and more. The update changes Hinge’s focus as the company has historically been the app designed to connect people looking for more serious relationships, while Match-owned Tinder was aimed at those seeking casual encounters.

Streaming & Entertainment

Image Credits: Spotify

  • Spotify revamped its concert discovery feature with the launch of a new Live Events Feed. The personalized feature will allow users to find favorite artists’ events in your area and will now include artist imagery and more tour details. Local events will also be highlighted while streaming and soon, in other places in the Spotify app.
  • Clubhouse is testing a new feature called Houses, per Bloomberg, which are private rooms aimed at encouraging social interactions where anyone can unmute themselves and speak.
  • Reddit Talk, the company’s live audio Clubhouse-like feature, announced its Host program would launch on July 11th. The program will promote hosts’ audio across the site. Reddit Talk also gained new features like a soundboard and topic selector for discovery purposes.
  • Apple Music raised the price of its student plan in the United States, Canada and the United Kingdom. In the United States and Canada, the price for the plan has increased from $4.99 to $5.99. In the United Kingdom, the price has increased from £4.99 to £5.99.

Gaming

  • Epic Games has come up with a new system for game ratings. While these changes apply to its own online games store, it’s an example of why alternative app stores could be useful to provide competition with Apple’s own — they can be a ground to test out new ideas. In Epic’s case, random players who have played a game for over two hours will be asked to rate the game on a five-point scale. Over time, these will create the game’s Overall Rating. The system, which relies on random sampling, could cut down on review bombing and reviews left by those who aren’t actual players, the company notes.
  • China’s regulation of the mobile gaming market may be leading to declining use of the App Store in the country, according to Morgan Stanley. The firm’s latest analysis estimated that the App Store only saw 1% growth in June so far, compared with 6% growth in May.

Health & Fitness

  • Fitbit added a new premium feature, “Sleep Profile,” which will allow users to track their sleep patterns across 10 key metrics, including new data points like bedtime consistency, the time before sound sleep and disrupted sleep. The feature is rolling out to the Fitbit app’s Premium users and supports devices including Sense, Versa 3, Versa 2, Charge 5, Luxe or Inspire 2.

Travel & Transportation

  • Apple is planning to expand its CarPlay experience to China, according to a job posting.
  • Polestar has now added Apple CarPlay to its all-electric Polestar 2 sedan via an over-the-air software update, after previously only supporting Android Auto.
  • Car rental apps saw their MAUs grow 19% year-over-year in the U.S. in May, reported Apptopia, despite rising gas prices.

Image Credits: Apptopia

Government & Policy

  • TikTok offered a series of commitments in the EU to improve user reporting and disclosure requirements around ads/sponsored content as well as an agreement to boost transparency around its digital coins and virtual gifts. The agreement follows a series of complaints over child safety and consumer protection complaints filed back in February 2021.
  • The U.S. Department of Justice today entered into an agreement with Meta to resolve a lawsuit that alleged Meta engaged in discriminatory advertising in violation of the Fair Housing Act (FHA). As a result, Meta has agreed to develop a new system for housing ads and will pay a roughly $115,000 penalty, the maximum under the FHA.

Reading & News

  • India-based VerSe Innovation rolled out its news aggregator Dailyhunt in the UAE, Saudi Arabia, Bahrain, Oman, Qatar and Kuwait, with over 5,000 content partners in the region.

Security & Privacy

  • Google Chrome for iOS gained a number of new features in a recent update, including access to Enhanced Safe Browsing to protect users from dangerous websites and malware, as well as the ability to make Google Password Manager your Autofill provider. Other additions include Chrome Actions (typed commands in the URL bar) and access to Google’s Discover feed on the main page.
  • Daycare apps including those from Brightwheel, HiMama and others were found to lack 2FA and other privacy protections, in an analysis.
  • Google threat researchers detailed a commercial spyware system called Hermit, used in Kazakhstan and Italy, which targeted both Android and iOS. The iOS version had six exploits, including two zero-days. Targeted victims are tricked into installing a malicious app — which masquerades as a legitimate branded telco or messaging app — from outside the app store.

Funding and M&A

Courier raised $35 million in a Series B funding round led by GV. The company provides an API for sending notifications across multiple channels, including email, text, web and mobile.

Ghana-based fintech Fido raised $30 million in equity investment and some undisclosed debt funding in a Series A round led by Israel-based private equity fund Fortissimo Capital. The round brings the total equity investment raised to date to $38 million. The startup says it’s adding savings and payment products to its portfolio later this year and will enter Uganda.

Twitter asked its shareholders to approve the $44 billion Elon Musk acquisition. At the time of its SEC filing, Twitter’s share price was around $38.12 — lower than Musk’s offer price of $54.20 a share. The company’s market cap had also dropped below $30 billion, making a $44 billion deal look very good.

Downloads

WatchTube

Image Credits: WatchTube

Well, here’s something kind of crazy: 9to5Mac this week highlighted the new app WatchTube, which lets you watch YouTube videos directly on your Apple Watch. Yes, really!

The app is not the best experience for watching videos, as you may have guessed, but it is pretty wild that it actually works. The app by default shows you top trending videos, but you can customize this so the videos that appear are selected from a particular genre, like Music, News, Gaming, Movies and more. While it would be enough to just accomplish bringing YouTube to the Watch, the developer also added other features like the ability to search for videos, save videos to the app’s local Library and subscribe to Channels. When you get back to your other devices, you can also scan a QR code to share the video back to your iPhone or iPad.

Read More

Continue Reading

Trending