Core Viewpoint - The potential risks associated with stablecoins can impact the stability of financial markets, including liquidity risks, financial disintermediation, and price volatility linked to market dynamics [1] Group 1: Liquidity Risks - Stablecoins are issued by private entities, and their stability relies on the quality and transparency of their reserve assets. Insufficient reserve mechanisms or declining asset quality can lead to a trust crisis, causing a run on stablecoins and subsequent asset sell-offs, which may indirectly affect the stability of the traditional financial system and trigger broader liquidity risks [1] Group 2: Financial Disintermediation - Stablecoins may divert business from traditional banking services such as deposits, loans, and remittances. In high-inflation countries, residents may prefer holding stablecoins over bank deposits. Additionally, stablecoins facilitate cross-border payments that bypass traditional banking systems. The further development of decentralized finance could exacerbate the loss of business for traditional financial institutions, leading to financial disintermediation [1] Group 3: Price Volatility and Market Linkage - There is a high correlation between stablecoins and the cryptocurrency market. The boundaries between cryptocurrencies and traditional stocks are becoming increasingly blurred, evidenced by the emergence of crypto assets in traditional financial markets (e.g., listings of companies like Circle) and traditional financial institutions entering the crypto space (e.g., offering crypto trading services, issuing tokenized stock products). This trend enhances the price transmission and linkage effects between the entire crypto asset market and traditional financial markets [1]

Core Viewpoint - The future of Federal Reserve Chairman Jerome Powell has become a focal point of concern, significantly impacting investor confidence and market trends [1][6]. Group 1: Political Dynamics - Recent statements from the U.S. President indicate a willingness to allow Powell to complete his term, despite dissatisfaction with his performance [1][3]. - There are ongoing criticisms from some political figures, including a fabricated resignation letter incident, highlighting the contentious political environment surrounding Powell's position [1][3]. Group 2: Government Stance - The Treasury Secretary has softened criticisms of Powell, acknowledging his performance as acceptable and supporting him to serve until the end of his term [4]. - The Treasury Department emphasizes the need for continued scrutiny of the Federal Reserve's actions to ensure alignment with public interests [4]. Group 3: Market Implications - The uncertainty surrounding Powell's future underscores potential impacts on financial markets, as Federal Reserve interest rate decisions influence global capital flows and risk appetite [6]. - Investors are advised to focus on fundamental analysis and adapt trading strategies in response to policy changes, maintaining a rational approach in the current environment [6].

Group 1 - The central bank of Israel will determine the interest rate path based on inflation trends towards its target, the stability of financial markets, economic activity, and the state of fiscal policy [1]

Core Viewpoint - The easing of trade tensions between China and the U.S. is expected to support the resilience of foreign trade in the second quarter, but the future of economic negotiations remains uncertain due to escalating strategic competition between the two countries [1][12]. Group 1: Trade and Economic Impact - In April, China's exports to the U.S. decreased by 21% year-on-year, while imports fell by 14%, indicating a significant impact from the tariffs, but the overall trade balance was not completely disrupted [2]. - China's overall export growth in April was 8.1%, significantly higher than the market expectation of 2.0%, supported by increased exports to non-U.S. countries, such as a 21% increase to ASEAN [2]. - The industrial added value in April grew by 6.1% year-on-year, exceeding the market expectation of 5.5%, driven by resilient foreign trade [2]. Group 2: Economic Growth and Structural Changes - The high-tech manufacturing and digital product sectors showed strong performance, with year-on-year growth rates of 10% for both categories, indicating a shift towards industrial upgrading [3]. - Investment in high-tech services increased by 11.3% year-on-year from January to April, with information services seeing a remarkable 40.6% growth [3]. Group 3: Infrastructure Investment - Infrastructure investment (excluding electricity) grew by 5.8% year-on-year from January to April, supported by accelerated fiscal policies [4]. - Local government special bonds issuance reached 1.19 trillion yuan, a 65% increase year-on-year, indicating a proactive approach to funding infrastructure projects [4]. Group 4: Financial Market Resilience - The Chinese financial market demonstrated strong resilience, with the A-share market rebounding by 7.1% from its low in April, and the onshore and offshore RMB appreciating by 1.2% and 2.2% respectively [5][6]. - Despite the pressures from U.S. tariffs, foreign capital continued to show interest in Chinese assets, with net inflows into domestic bonds and stocks [6]. Group 5: Currency and Exchange Rate Dynamics - The RMB appreciated against the USD, but its real effective exchange rate index fell by 2.9% in April, indicating a passive appreciation that does not harm export competitiveness [8]. - The foreign exchange market remained stable, with banks reporting a surplus in foreign exchange settlement and sales, driven by increased willingness to settle in RMB [7]. Group 6: Consumer and Real Estate Market Trends - Consumer spending showed signs of weakness, with retail sales growth slowing to 5.1% in April, below market expectations, largely due to declining automobile sales [10]. - The real estate market faced challenges, with sales volume and value declining by 2.1% and 6.7% year-on-year, respectively, indicating a weakening demand [11].