The UK might already be in a recession — before even leaving the EU; China stocks: Star market to burst (?)

  • The National Institute for Economic and Social Research says that the UK economy has stalled due to the uncertainty and that there is a one in four chance the economy could be in recession.
  • If the UK avoids crashing out of the EU without a deal, then the economy is forecast to grow 1% in 2019 and 2020.
  • A “no-deal Brexit” could mean a stagnating economy for up to two years. There is a 30% chance of output growth of less than 0% in 2020. :cry:

  • So, you want to quintuple your money in a day? Investors in Anji Microelectronics, a semiconductor parts maker got just that. Anji was part of the first batch of stocks to list on Shanghai’s Star Market, a would-be Asian rival to Nasdaq.
  • Funds poured into Star Market. But history suggests these spectacular gains are overdone. The timing suggests Chinese unicorns are turning away from New York due to the trade war.
  • However, most foreign investors are kept out of the new trading venue, which lacks a link with Hong Kong. The ability for investors to short-sell stocks for the first time in mainland China will add to volatility when the going gets rough.
  • The real test for the exchange will be whether it can drag some top tech names on board :thinking: