Weekly Market Update - 17 July 2023

China Talks

Treasury Secretary Janet Yellen’s visit to China will help build a “resilient and productive” channel of communication between the countries, she said Sunday in Beijing. Frictions between Washington and Beijing have recently tumbled into a tit-for-tat trade war with both sides restricting exports critical to advanced technologies. During 10 hours of meetings, Yellen sought to convince China’s newly installed economic team that the US isn’t bent on seeking “economic advantage” against the country, she said. Meanwhile, the visit cleared up any doubts that that Pan Gongsheng is now firmly in charge of the country’s central bank.

Source: Bloomberg

Ant Buyback

Alibaba Group’s considering selling shares to Ant Group, part of the fintech company’s planned buyback after financial regulators wrapped a nearly three-year probe into the financial technology firm. On Saturday, Ant proposed to buy back as much as 7.6% of shares in an effort to provide a chance to cut stakes for investors ensnared by a years-long regulatory crackdown. Jack Ma’s three-year clash with the Chinese government has cost Ant and Alibaba about $850 billion.

Source: Bloomberg

Goldman Results

Rarely has Goldman Sachs Group Inc. worked so hard to unimpress. The Wall Street giant has embraced a new game plan to avoid a third straight quarter of disappointing investors on earnings day. Breaking with its own long-standing convention, Goldman executives have been actively downplaying expectations for results that will be disclosed next week.

Source: Bloomberg