🌳 China's Industrial Profits Surge Amid Economic Challenges; Trump Vows Pro-Crypto Policies at Bitcoin Conference

Macro & TradFi

China's industrial profits (https://www.cnbc.com/2024/07/27/chinas-industrial-profits-for-the-first-half-of-the-year-rise-3point5percent-.html) surged in June with a 3.6% year-on-year rise, up from a 0.7% gain in May, despite a faltering economy and weakened consumer sentiment. First-half earnings increased by 3.5%, according to the National Bureau of Statistics. The robust profit growth contrasts with a slowing economy, marked by a disappointing second quarter and ongoing job market and housing challenges. Amid rising trade tensions with the West, some firms like Zhongji Innolight and Suzhou TFC Optical Communication reported significant earnings increases due to the global AI expansion. In response to economic fragility, China has intensified monetary stimulus efforts, including unscheduled lending operations at lower rates and significant treasury bond-funded initiatives to boost equipment upgrades and consumer goods trade-ins. State-owned firms saw a 0.3% profit increase, foreign firms 11%, and private-sector companies 6.8%. These industrial profit figures pertain to firms with annual revenues of at least 20 million yuan.

In other news, Kamala Harris (https://www.reuters.com/world/us/kamala-harris-campaign-raises-200-million-one-week-2024-07-28/)'s campaign raised $200 million and enlisted 170,000 new volunteers within a week of becoming the Democratic Party's presidential candidate, following President Biden's endorsement and withdrawal from the race. This significant fundraising achievement, which saw 66% of contributions from new donors, underscores a rejuvenated campaign poised to challenge Republican former President Donald Trump. Despite being tied in recent polls, Harris's entry has revitalized the Democratic effort, countering doubts about Biden's ability to win. This surge in support and resources positions Harris to potentially transform the electoral landscape in the final 100 days leading to the November 5 election.

On Friday, U.S. stock indexes closed higher, buoyed by inflation data and a resurgence in tech stocks. The S&P 500 gained 1.11%, closing at 5,459.10, while the Nasdaq Composite rose 1.03% to 17,357.88. The Dow Jones Industrial Average increased by 1.64% to 40,589.34. The Dow edged up 0.75% for the week, while the S&P 500 and Nasdaq fell by 0.82% and 2.08%, respectively. The Russell 2000 and S&P Small Cap 600 marked their fourth gain in five days, supported by moderate inflation data suggesting the Federal Reserve might cut interest rates soon. Deckers Outdoor surged 6.3% after raising its profit forecast, and Baker Hughes climbed 5.8% on strong quarterly earnings. Norfolk Southern soared 10.9% following better-than-expected profit results. Conversely, Dexcom plummeted 40.6% after lowering its annual revenue forecast. Overall trading volume was 10.92 billion shares, below the 20-day average of 11.61 billion. This week, the BOJ's interest rate decision is due on Wednesday, 31 July.

DeFi & CeFi

   •   Former President Trump announced intention to create “strategic national Bitcoin reserve”

   •   Senator Cynthia Lummis announced plan to purchase 1 million BTC

   •   $24M Compound Finance proposal passes by Whale over DAO objections

   •   Ava Labs' Engineering Head leaves to pursue own venture

   •   Wall Street's Cantor Fitzgerald to open Bitcoin financing business

🌳 China's Industrial Profits Surge Amid Economic Challenges; Trump Vows Pro-Crypto Policies at Bitcoin Conference

Macro & TradFi

China's industrial profits (https://www.cnbc.com/2024/07/27/chinas-industrial-profits-for-the-first-half-of-the-year-rise-3point5percent-.html) surged in June with a 3.6% year-on-year rise, up from a 0.7% gain in May, despite a faltering economy and weakened consumer sentiment. First-half earnings increased by 3.5%, according to the National Bureau of Statistics. The robust profit growth contrasts with a slowing economy, marked by a disappointing second quarter and ongoing job market and housing challenges. Amid rising trade tensions with the West, some firms like Zhongji Innolight and Suzhou TFC Optical Communication reported significant earnings increases due to the global AI expansion. In response to economic fragility, China has intensified monetary stimulus efforts, including unscheduled lending operations at lower rates and significant treasury bond-funded initiatives to boost equipment upgrades and consumer goods trade-ins. State-owned firms saw a 0.3% profit increase, foreign firms 11%, and private-sector companies 6.8%. These industrial profit figures pertain to firms with annual revenues of at least 20 million yuan.

In other news, Kamala Harris (https://www.reuters.com/world/us/kamala-harris-campaign-raises-200-million-one-week-2024-07-28/)'s campaign raised $200 million and enlisted 170,000 new volunteers within a week of becoming the Democratic Party's presidential candidate, following President Biden's endorsement and withdrawal from the race. This significant fundraising achievement, which saw 66% of contributions from new donors, underscores a rejuvenated campaign poised to challenge Republican former President Donald Trump. Despite being tied in recent polls, Harris's entry has revitalized the Democratic effort, countering doubts about Biden's ability to win. This surge in support and resources positions Harris to potentially transform the electoral landscape in the final 100 days leading to the November 5 election.

On Friday, U.S. stock indexes closed higher, buoyed by inflation data and a resurgence in tech stocks. The S&P 500 gained 1.11%, closing at 5,459.10, while the Nasdaq Composite rose 1.03% to 17,357.88. The Dow Jones Industrial Average increased by 1.64% to 40,589.34. The Dow edged up 0.75% for the week, while the S&P 500 and Nasdaq fell by 0.82% and 2.08%, respectively. The Russell 2000 and S&P Small Cap 600 marked their fourth gain in five days, supported by moderate inflation data suggesting the Federal Reserve might cut interest rates soon. Deckers Outdoor surged 6.3% after raising its profit forecast, and Baker Hughes climbed 5.8% on strong quarterly earnings. Norfolk Southern soared 10.9% following better-than-expected profit results. Conversely, Dexcom plummeted 40.6% after lowering its annual revenue forecast. Overall trading volume was 10.92 billion shares, below the 20-day average of 11.61 billion. This week, the BOJ's interest rate decision is due on Wednesday, 31 July.

DeFi & CeFi

   •   Former President Trump announced intention to create “strategic national Bitcoin reserve”

   •   Senator Cynthia Lummis announced plan to purchase 1 million BTC

   •   $24M Compound Finance proposal passes by Whale over DAO objections

   •   Ava Labs' Engineering Head leaves to pursue own venture

   •   Wall Street's Cantor Fitzgerald to open Bitcoin financing business