Nvidia versus the Fed

Following the strong upwards surge in stocks and bonds at the beginning of May, capital markets have recently moderated and were mostly flat, to slightly down, overall last week. Britons were preoccupied with Rishi Sunak’s surprise election call – polling now less than six weeks away – but capital markets clearly had bigger things to worry about.

China building a new world order, but still living in this one

Vladimir Putin’s visit to China last week has brought the Russia-China relationship into sharp focus. Just after the Russian president invaded Ukraine in early 2022, he and President Xi toasted the two nations’ “no limits” friendship. It was a signal of things to come, as much as a rebuke of Western sanctions. Economic and political ties between the countries have grown dramatically since, with bilateral trade reaching $240 billion last year, which is very considerable given Russia’s economy comparatively small size these days (for comparison: China trade with US is $575bn and over $800bn with EU).

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