Itaú Blog

Market Update - Check out the September edition highlights

See the main topics discussed during the latest edition of our live, which featured the participation of Gina Baccelli, chief economist at Itaú Private Bank, and Laura Pitta, senior economist at Itaú BBA for China and Europe

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Itaú Private Bank

• 4 minutos de leitura

Créditos: Itaú Private Bank

Last Tuesday, 09/12, we held the Market Update” livestream with Marcelo Aagesen, Head of Global Markets and Niraj Patel, Chief Equities Strategy, both from Itaú Private Bank international.

Check out the highlights of the conversation about why China's economy is slowing down and why it matters:

  • After three years of restrictions related to Covid-19, China's reopening generated a lot of optimism, but Chinese consumption remains low, as there has been no income transfer since before 2020.

  • China's economic recovery is essential to the global economy, but its ability to drive the recovery is limited by the slowdown in the European and American economies.

  • China's isolation on the international scenario is worrying, especially the deterioration of the relations with the USA.

  • The relationship between the United States and China is fundamental, and the American elections have a significant impact on this dynamic. Regardless of whether Republicans or Democrats win the next election, the US intends to stop China's growth.

  • The concentration of power in China is another point of attention, as it may hinder the authorities' ability to act effectively. This affects confidence in the private sector.

  • Currently, there are many challenges faced to stimulate consumption and reduce high family savings, which are impacted by the lack of social assistance.

  • China, as one of the world's leading economies, faces significant obstacles to its growth trajectory, including internal geopolitical and economic issues. Its recovery is essential for the global economy, but the country needs to address structural issues to maintain sustainable growth and contribute to global recovery.

Watch the full recording below: