China Schools ‘For-Profit’ Tutors
July 26, 2021
–Today’s newsclips seem to be focused on the regulatory situation in China, where a new crackdown on “for-profit” educational firms is spilling over into broader selling. The larger US universities with massive endowment funds are nervously shifting on their feet… In any case, Hang Seng fell 4% and CSI300 fell 3.2%. China’s previous moves against Ant Group and Didi, along with a clampdown on speculative lending may have just been the start of a broader campaign. China Evergrande Group is down over 7.5% today.
–Unsurprisingly, bitcoin is being bolstered by uncertainty elsewhere and is over 38k, while gold is seeing relatively modest support, GCZ +6.6 at 1812.50. Grains are a bit lower, though an article on ZH outlining unusual weather patterns highlights a risk to global food security: “Things that are happening in one part of the world end up impacting all of us,” said Agnes Kalibata, a United Nations special envoy for the 2021 Food Systems Summit and Rwanda’s former agriculture minister. “We’ve underestimated as a world is just how frequently” weather could seriously disrupt the global food system.
–Yields are lower this morning. Tens ended up 2.2 bps on Friday at 1.285%, and are now nearly 4 lower than Friday’s close, at 1.246%. The event of the week is Wednesday’s FOMC announcement and press conference. Today we have an auction of 2yr notes and TSLA reports. Other major tech results also occur this week, including AAPL, GOOGL and MSFT tomorrow.
