What does German stimulus and US-China tensions mean for Adidas?
Adidas seems to have got some tailwind lately with a VAT reduction in Germany starting in July and better Q2 sales in China compared to last year.
Divided Europe: The battle between loans and grants
The EC is due to present today its proposal of EU budget for the period 2021-27 and the details of the recovery plan. It will open a long and intense period of negotiations between member states regarding the financial instrument that could be used (loans or grants) to help countries in need. A final agreement is expected by at the next EU Council meeting in June. In the interim, Europe is once again wasting precious time needed to fight the crisis.
Yuan in Focus awaiting US Rebuttal
Asia equities continue to trade higher sweeping aside the mounting tensions between the US and China, instead focusing on the perceived positives which have driven risk assets in recent weeks. Namely economic optimism surrounding reopening economies, slowing COVID-19 case growth and expanding central bank balance sheets, with the pledge to continue to backstop asset prices as and when needed.