A lack of investment into infrastructure and education had always been a key stumbling block for India. Yet, today, we see substantial growth and investment opportunity amidst growing US-China geopolitical tensions
Modi's visit to the US: In a bid to strengthen US-India r/s as a counterbalance to China and to support India's ambitions in the tech sector, Indian PM Narendra Modi embarked on a high-profile visit to the US
Expanding ties:
Watch out for India: With mounting apprehensions towards China, the US increasingly views India as a compelling substitute in terms of supply chains, innovation hubs, and JVs. This event further signal future deals/reforms in trade policies, tech transfer, and investment barriers.
A lesson from the Adani saga: Nevertheless, the Adani saga taught us that Indian equities might still be plagued with corporate governance issues and overly optimistic sentiments.
Straining US-China relations causing a drag in Chinese stock markets
A dictator: During a Democratic Party donors reception, US President Joe Biden made a comparison between Chinese President Xi Jinping and "dictators," expressing his views to journalists. This undermines US Secretary of State Antony Blinken's efforts during his visit to Beijing, which Xi Jinping issued rare praise for, saying it was "very good"
China's response: China responded by calling the remark a serious violation of “China’s political dignity”, an “open political provocation” and "extremely absurd and irresponsible"
Definitely does not help with investor sentiments surrounding China, especially with news recent pertaining India. This is likely the reason behind the slight drop across Chinese equity indices in the past few days.
A challenge to Putin's authority and the Russian state's foundation, indicating the fragility of the regime
Background: In the past day, Yevgeniy Prigozhin (a powerful mercenary military leader), the leader of the Wagner Group, turned against the Russian Ministry of Defense. They captured Rostov-on-Don, and headed towards Moscow. However, a resolution was reached through Belarusian President Alyaksandr Lukashenka, leading to the Kremlin dropping its charges against Prigozhin. As part of the agreement, Prigozhin agreed to withdraw his fighters and relocate to Belarus.
Discontent: Swift capture of Rostov-on-Don suggests discontent at the Russian periphery with the Kremlin's war handling
Russia's warfighting capabilities: This will undermine Russia's warfighting capabilities in Ukraine, just as Kyiv is ramping up its counteroffensive
Putin's hold on power: This is a challenge to Putin's authority and the Russian state's foundations, indicating the fragility of the regime. However, there is still a lack of coherent opposition within Moscow and claims of Putin's downfall are grossly exaggerated