Financial Markets China Money Problem #Finance

hi friends welcome back I want to give you an update what’s going on in the market today I’ll share my thoughts I want to get yours as well so first we’ve got to talk about China there’s a bunch of stories connected to this and essentially the the major question is

where’s the money uh are you giving the money to me and is there any money left right these kind of the questions um let’s start with this headline a chip company asml Shares plunged 16% after warning of weaker China sales in early release right so where’s the

money you giving me the money and is there any money left um this was an odd one because asml it’s a chip company out it’s a Dutch company um and uh essentially they’re saying okay our China sales are weaker than what we originally said they originally said in uh June that their

sales from China were going to be like 49% of their sales uh now it’s only like 20% so it’s like a much smaller portion the other thing that’s really odd about this one so that they’re way off in their estimates back from back in June the other thing that was really odd

about this one is that um they were supposed to release their financial results uh tomorrow not today uh and basically they just say it was due to I think they say yeah results early publication of its results was due to a quote technical error which sought erroneously publish a report to the

website so who knows what that means uh is there some you know some sort of insider trading going on or something like that I I don’t know I just know that the results were supposed to be tomorrow they came out today early and they’re calling it a technical error so I’ll let you

guys be the judge of that obviously there’s um you know billions of dollars floating around uh the Shares crashed 16% and um they this is what their quote is so we expect China to come in around 20% of our total Revenue for next year which would also be in

line with the representation in our backlog but again they were saying 49% uh in uh June um part of what’s going on is you could say uh there’s not enough money in China to buy your chips also there’s pressure um from the USA on us chipmakers and also the Allies chipmakers to not

sell chips to China so um you know slow down on both sides both end don’t sell restrictions and we’re not buying we don’t have the money or um I I be keeping reports that uh China’s government keeps trying to build up their own chip industry uh so there’s that um you

also have this story and this sort of why we we check China story is because remember guys um if you’re in sort of in you know investing in sort of kind of company that sells products to China you want to make sure that they have money and also too that there aren’t trade restrictions

so whatever company you’re invested in can you know trade and sell things to Consumers China um here’s another example uh lvmh reports fall in third quarter sales and warns of quote uncertain Outlook and uh that’s essentially the the Louis Vuitton right the luxury brand and uh

they are saying uncertain economic and geopolitical environment so um they’re concerned about sales in China uh the question is Right will these people show up and keep buying handbags um at the moment no and how long will that uh go on right so um it’s not like lb is going to go out of

business per se but it’s just they’re going to have a Slowdown one of the things that’s going on is is the Chinese government is looking for more money to keep everything afloat um you guys know that they’ve had this basically crazy housing meltdown and um you know one of

the things that they’ve been thinking about doing is issuing uh Bonds right so get people to buy government Debt they want rich people to do that and uh if you don’t buy our government Debt we’re just going to tax you right so

either way we’re going to get your money one way or the other and I re bring up the tax thing cuz this wasn’t is this was an interesting one um the headline reads uh China moves to tax Ultra Rich for overseas investment gains now if you don’t understand this stuff I I and guys I

can told you before and um I used to live in China I lived in Shanghai Shenzhen and Beijing I’ve been around a lot of wealthy people and all this tell you they hide money any number of ways right you can buy houses for cash uh you know in Australia you can invest in you know uh companies in

Canada you can buy stocks in Cryptos or whatever in us um any number of ways that you’ll get money out of the the country so right now the Chinese government needs money to come back to

the country and so again one way would be um to uh you know sell government Debt to these people or just tax them now what’s interesting about this one is um they say here the individuals contacted are facing up to 20% levies on investment gains and some are also subject to

penalties and overdue payments right you haven’t been paying um but it says here uh the final amount is negotiable so you know it depends what relationship that you have they also said here it was kind of an odd way of assessing it it says um and I’ll tell you what I mean it says some

wealthy individuals in major Chinese cities were told in recent months to conduct and this this was odd self assessments or summoned by tax authorities for meetings to evaluate potential payments uh and again you’re dealing with high Net Worth individuals um are these

meetings friendly who knows it depends uh sometimes these kind of people um disappear for a couple months and then they show back up and uh you know surpris surprise they’ve given a bunch of money to the government or otherwise and you saw this actually a whole bunch with um uh the

Real Estate people like the heads of the Real Estate companies a lot of these people were were well I’ll say you know there’s a bunch of these kind of people but we’ll say there were many of the high Net Worth individuals that

were based in Hong Kong and then um essentially like their wealth just collapsed due to this thing uh people need a Fall Guy whether or not you know these Ultra ralth people like end up really taking the fall who knows um but they do disappear from public life and um this is something that you know

again it’s it’s all about money are you hiding the money where’s the money Etc and um you know this affects uh the whole global economy so there’s that um also again I was talking about you know trying to get money from people uh Boeing’s interesting one um it says

here this is the headline Boeing seeks 35 billion as strike Hammer Finances so um I think they announced recently it was like 177,000 workers are going to be laid off and

then they still have this major uh worker strike and they’re trying to raise money um it was actually unclear how they’re going to do this um because it says here for example it says 25 billion in stock and then 10 billion in Credit uh agreement um but then there was

someone who made a comment on this that the um basically what the do what they has has to be done is like the uh investment banks have to go around and try to sell Boeing’s Debt and at the moment I guess it’s hard to find buyers for that right people just don’t

trust Boeing so what ends up happening is that um Boeing will to try to make the terms really attractive right because it’s kind of risky to invest in in Boeing at this point but you know hey if we we offer you you know 12% will you do it that kind of stuff and again this is sort of the

finalized um will Boeing get bailed out by the US government you could certainly make the case that that that could happen um because if they decide that this is part of our national security that we have to have you know this uh a company producing planes which I I don’t disagree with but um

unfortunately in my lifetime I’ve seen this kind of stuff go on far too long be it your Ford GMS boeings right your Wall Street Banks or whatever um this is just how the game is played so we’ll see what happens with with Boeing um but there’s that they’re they’re

looking around for money to try to save the company um what’s interesting though is that uh Banks reported their earnings today and um Goldman Sachs I guess uh their trading uh call Revenues were up uh so they’re doing okay there um Bank of America and there’s

another one there was a couple of the banks I think it might have been city um they reported uh they were saying they were expecting more downturn in and consumer spending and Consumer Credit these kind of things so things are still bad but not as bad as before uh the the

projections before that is um and so coming a little bit better uh and this is always the question I post to you guys it depends on your neck of the woods right so in your situation like maybe you think well you know Chris I I I don’t know what what they’re saying when the government

tells me everything’s fine and but like I look around and like no things aren’t fine in my my friends that kind of stuff right it just depends on your situation so I I I can’t comment on yours but I I I can say that um when I do look at the overall numbers I do see that

delinquencies are going up I do see that uh however and this is talking about like you know people who aren’t paying their car payments or Credit card payments Etc um but I haven’t really seen like to where you have these like major you know amounts of foreclosures and

homes and that stuff right um we do know that the Americans are running out of cash this would be on the lower uh chain of the economic groups um but the one seem to be doing well to say okay uh the difference though is was interesting is that um and this this is the wealth effect essentially if

you have Assets so that would be stocks you know Real Estate this kind of stuff um that just keeps going up right and it was just uh yesterday we were talking about how stocks are reachs are all-time highs today there was the pullback right a lot of the um the

chips was a big scare um and uh you know because we’ve had this AI run for I don’t know a couple years now we it go into year three uh who knows I I you know my feeling this is all a bubble that that’s just me but I I know that if you turn to other YouTube channels um if you want

to be popular you pump bubbles I understand that so I do acknowledge that it is what it is so you know if I tell you that your bubble’s not going to go to the Moon you know it’s unpopular so I just tell you it is what it is um but you know when I when I look around at all this kind of

stuff and I just feel like the money isn’t there like what it used to be right you you can see it in and what companies say um here’s an example this was an interesting one it was United Health and um their stock went down like crazy it was the most in four years it was the most

that’s gone down since 2020 I think it was uh I want to say it was was it 9% today yeah it was 9% um so they’re a private uh you know Health stock and uh essentially or health company you can say um and essentially there’s a couple reasons that they gave I thought was interesting

they were saying um people more people are using essentially the government plans so would be like your your Medicare stuff um and so obviously you have if you have a stronger you know government plan or say you have more elderly workers that maybe are going to be on that um perhaps the uh

Insurance companies in this space maybe don’t Profit so much right your pool of people that you’ll can Target are going to go down and um you know the options are are more there for Americans so um this kind of thing guys I live in Korea I can just tell

you um we have uh you know government subsidized um um hospitals and Medicare or I could say medical industry over here and um it’s it’s oodles cheaper and it’s much much better I live here I can just tell you um everything’s better it’s it’s hard to explain and

I understand um to Americans who’ve never experienced it there’s some Americans out there that this fear anytime you know the government wants to subsidize uh anything in the medical industry I understand there’s a group of Americans out there like that but until you’ve seen

it where if you know just imagine you go to the hospital and instead of costing you $10,000 it costs you $1,000 right just for example or you know you go and you buy prescription medicine uh instead it cost you you know maybe in America may it cost you $400 here it cost you 10 bucks that kind of

stuff you’ll notice you’ll notice some real differences um one thing that’s going on here is in Korea that um there’s been some political factions that want to privatize our system and that may end up going that way who knows and then it becomes a for-Profit

model like the USA uh me personally I hope not um but I I do understand uh there’s money in this stuff and that’s something that happens in the USA if there are you know people Profiting off said system they never want to change said system so but according to this

though at least um UNH they’re saying hey maybe more people are on Medicaid Etc and then they’re also saying um they lost a bunch of money due to cyber attacks so uh I don’t know like how common that is and for anyone in this profession you guys can let me know um I remember we

had a Cyber attack thing I think it was with the I want to say they use cars uh dealerships and stuff like that um that was like a couple months ago um and uh I mean the stuff can you know cost companies quite a bit of money so unfortunately that’ll probably be a problem going forward uh see

any change in that um other things going on uh Trump gave an interesting interview uh with Bloomberg there are multiple quotes from this saying and you know Trump always says the wildest Things but there’s a couple that stood out to me and I want to read through it specifically just to keep

you guys up to breast of what the dude saying um he was talking about tariffs and this is something to where I’ve told you before we talked about yesterday where a confer saying you know Trump gets in chances are uh Inflation will go up right he’ll put tariffs on

everything and according to Trump I’ll read it here it says Trump called tariffs quote the most beautiful world in uh word that is not world the most beautiful word in the dictionary so that’s tariffs launching to a broad defense of his protectionist policies right so he’s all

about tariffs and then says here Trump complained that the US is being taken advantage of by China Mexico and France and quote all you have to do is build your plant in United States and you’ll have no tariff so that’s according to Mr Trump um Trump was also asked about his ties with

Russia and let me read the the the sentence here you’ll read it or paragraph I should say he declined this Trump he declined to say whether he has kept an open line of communication with Russian President Vladimir Putin so Trump declined to say if if it’s true or not because basically

there’s a book that came out that said that Trump’s talking to Putin after he gets out of the White House and that was the Bob Woodward book um Bob’s or Woodward’s a pretty trustworthy person so I wouldn’t doubt it wouldn’t shock me um and then here’s the

quote here Trump says I will tell you that if I did it’s a smart thing and again that’s that’s in reference to are you talking to Putin or not when you’re not in the white house he didn’t he didn’t U you know refute it he just said it would be a smart thing if he

did um moreover that’s that’s Trump and and you get used to this nonsense from this guy but again I understand from his supporters they say oh yeah yeah Putin’s awesome or whatever who knows what they say um and this is uh regarding the FED which got talk about Trump as well it

says uh talking to Trump ask whether he would seek to remove Jerome pal as the head of the Federal Reserve Trump Sid stepped the question instead mocking the Chairman’s job this is a quote from Trump um I think it’s the greatest job in government you show up to the office once a month

and you say let’s flip a coin and everybody talks about you like your God so maybe Trump’s you know jealous of Jerome pow who knows uh Trump said then it says here he defended the right of the president to job on the Federal Reserve in raising or lowering rates but then complained that

drop rates too low after Trump expressed his displeasure at higher rates so U you know Trump complains oh rates are too high please drop them now now he complains oh it’s too low and then he’s just saying oh you just flipped the coin so who knows what Trump says I don’t I

don’t spend too much time trying to trying to figure it out I just know that dude’s nuts and um you know this unfortunately could actually be the next president again we’ll see