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21<\/em><\/strong>-09-2021<\/em><\/strong><\/p>\n George Lucas, Raiz Group CEO<\/em><\/strong><\/p>\n In Japan, the resignation of Japan\u2019s Prime Minister Yoshihide Suga at the start of September appears to have raised investors\u2019 hopes that the country might see a renewed focus on the economic policies of his predecessor Shinzo Abe, such as further fiscal stimulus and structural reform.<\/p>\n <\/p>\n The resignation announcement, which came after Mr Suga’s approval ratings dropped to an all-time low, has led to a significant rally in Japan\u2019s stock market that has seen it now almost entirely unwind its underperformance this year relative to the rest of the world.<\/p>\n The rebound follows data out earlier this month that showed Japan’s economy grew an annualised rate of 1.9 per cent in the second quarter, better than the initial estimate of a 1.3 per cent gain, confirming the country\u2019s gradual recovery from a COVID-induced slump.<\/p>\n Interestingly, the yen has held up against the US dollar and we do not expect it to fall much over the remainder of the year.<\/p>\n <\/p>\n Across in China, the current slowdown in the world\u2019s second largest economy has reignited some 2015-style \u201chard-landing\u201d fears, resulting in negative spill-overs particularly for commodity currencies and materials-heavy stock markets such as Australia, I am guessing not helping Indonesia and Malaysia currencies either.<\/p>\n We think the poor performance of China\u2019s stock market — both in the past few days and over the year — has a couple of key drivers. A key contributor is that the country\u2019s economy has slowed by a greater margin than many people initially expected, stoking fears it is losing momentum.<\/p>\n Another contributor is that authorities in China have increasingly cracked down on the private sector across a number of fronts, ranging from healthcare, liquor, gaming and even after-school tutoring.<\/p>\n Looking ahead, Chinese authorities will ultimately step in to stabilise domestic financial markets in the event of \u00a0large-scale corporate defaults such as the one by developer China Evergrande Group, which is presently in the throes of a liquidity crisis with over $300 billion in liabilities.<\/p>\n It\u2019s also worth noting that it\u2019ll probably take more than a cyclical slow-down in China\u2019s economic growth — and weakness in its stock market — to weigh materially on global appetite for risk.\u00a0 The global markets will likely focus more on China\u2019s currency than the Chinese stock market.<\/p>\n <\/p>\n In Australia, official data showed the unemployment rate fell from 4.6 per cent in July to 4.5 per cent for August, despite 146,300 jobs being lost.<\/p>\n The reason for this is that many people gave up looking for work as lockdowns weighed on the labour market. Looking forward, it is unlikely that the jobless rate will surpass its level prior to the emergence of the delta variant over the coming months due to a rebound in the participation rate<\/p>\n <\/p>\n In addition to central bank policy meetings this week out of the US Federal Reserve, Bank of England, and Bank of Japan, we have Bank Indonesia due to set policy rates in the southeast Asian nation.<\/p>\n Most analysts surveyed by news agency Reuters expect Bank Indonesia to keep its key interest rate steady as the country continues to recover from the coronavirus pandemic.<\/p>\n <\/p>\n <\/p>\n Download it for free in the App store or the Webapp below:<\/p>\n <\/figure>\n Important Information<\/em><\/strong><\/p>\n If you have read all or any part of our email, website, or communication then you need to know that this is factual information and general advice only. This means it does not consider any person\u2019s particular financial objectives, financial situation, or financial needs. If you are an investor, you should consult a licensed adviser before acting on any information to fully understand the benefits and risk associated with the product. This is your call but that is what you should do.<\/em><\/p>\n You may be surprised to learn that RAIZ Invest Australia Limited (ABN 26 604 402 815) (Raiz), an authorised representative AFSL 434776 prepared this information.<\/em><\/p>\n We are not allowed, and have not prepared this information to offer financial product advice or a recommendation in relation to any investments or securities. If we did give you personal advice, which we did not, then the use of the Raiz App would be a lot more expensive than the current pricing \u2013 sorry but true. You therefore should not rely on this information to make investment decisions, because it was not about you for once, and unfortunately, we cannot advise you on who or what you can rely on \u2013 again sorry.<\/em><\/p>\n A Product Disclosure Statement (PDS) for Raiz Invest and\/or Raiz Invest Super is available on the Raiz Invest website and App. A person must read and consider the PDS before deciding whether, or not, to acquire and\/or continue to hold interests in the financial product. We know and ASIC research shows that you probably won\u2019t, but we want you to, and we encourage you to read the PDS so you know exactly what the product does, its risks and costs. If you don\u2019t read the PDS, it\u2019s a bit like flying blind. Probably not a good idea.<\/em><\/p>\n The risks and fees for investing are fully set out in the PDS and include the risks that would ordinarily apply to investing. You should note, as illustrated by the global financial crisis of 2008, that sometimes\u00a0 not even professionals in the financial services sector understand the ordinary risks of investing \u2013 because by their nature many risks are unknown \u2013 but you still need to give it a go and try to understand the risks set out in the PDS.<\/em><\/p>\n Any returns shown or implied are not forecasts and are not reliable guides or predictors of future performance. Those of you who cannot afford financial advice may be considering ignoring this statement, but please don\u2019t, it is so true.<\/em><\/p>\n Under no circumstance is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.<\/em><\/p>\n This information may be based on assumptions or market conditions which change without notice and have not been independently verified. Basically, this says nothing stays the same for long in financial markets (or even in life for that matter) and we are sorry. We try, but we can\u2019t promise that the information is accurate, or stays accurate.<\/em><\/p>\n Any opinions or information expressed are subject to change without notice; that\u2019s just the way we roll.<\/em><\/p>\n The bundll and superbundll products are provided by FlexiCards Australia Pty Ltd ABN 31 099 651 877 Australian credit licence number 247415. Bundll, snooze and superbundll are trademarks of Flexirent Capital Pty Ltd, a subsidiary of FlexiGroup Limited. Lots of names, which basically you aren\u2019t allowed to reproduce without their permission and we need to include here.<\/em><\/p>\n Mastercard is a registered trademark and the circles design is a trademark of Mastercard International Incorporated.<\/em><\/p>\n Home loans are subject to approval from the lending institution and Raiz Home Ownership makes no warranties as to the success of an application until all relevant information has been provided.<\/em><\/p>\n Raiz Home Ownership Pty Ltd (ABN 14 645 876 937), an Australian Credit Representative number 528594 under Australian Credit Licence number 387025. Raiz Home Ownership Pty Ltd is 100% owned by Raiz Invest Australia Limited (ABN 26 604 402 815).<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" 21-09-2021 George Lucas, Raiz Group CEO In Japan, the resignation of Japan\u2019s Prime Minister Yoshihide Suga at the start of September appears to have raised investors\u2019 hopes that the country might see a renewed focus on the economic policies of his predecessor Shinzo Abe, such as further fiscal stimulus and structural reform.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[1],"tags":[],"yst_prominent_words":[3804,3803,3798,3801,3796,3805,3807,123,3800,3795,3802,3797,3808,3806,3799,125,122,120,3794,3787]}Fears increase over China slowdown<\/h3>\n
Aus unemployment drops again to 4.5%<\/h3>\n
Bank Indonesia set to meet this week<\/h3>\n
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