DHUnplugged #691: Lying Flat

Japan makes surprise crypto move.

AI dating coaches are coming

- Markets plunge - then rebound nicely

- AI Buying AI stuff

- Cure for Frostbite?

PLUS we are now on Spotify and Amazon Music/Podcasts!

Click HERE for Show Notes and Links

DHUnplugged is now streaming live - with listener chat. Click on link on the right sidebar.

Love the Show? Then how about a Donation?

Follow John C. Dvorak on Twitter

Follow Andrew Horowitz on Twitter

Warm Up

- AI dating coaches are coming

- Markets plunge - then rebound nicely

- AI Buying AI stuff

- Cure for Frostbite?

- AMAZING AMAZON

Market Update

- Japan - really pumping the risk assets

- China government making $$ moves

- China: Latest Problem: Lying Flat

- Whoops - What is an extra ZERO anyway?

 Follow Up----

- USA CPI came out HOT!

- January PPI increased by 0.3% (Briefing.com consensus 0.1%), with the previous figure revised to -0.1% from -0.2%. Meanwhile, January Core PPI rose by 0.5% (Briefing.com consensus 0.1%), and the prior number was revised to -0.1% from 0.0%.

- The significant message from the report aligns with the conclusion drawn from the unexpectedly high January CPI report: whether the market opts to overlook this data due to seasonal adjustments, the Federal Reserve is unlikely to dismiss it.

- The Fed is likely to perceive it as a reason to maintain a patient approach in terms of potential rate cuts.

Market Hysteria

- The Russell 2000, sank 4% on Tuesday, but ultimately settled 1.1% higher on the week. The market-cap weighted S&P 500 declined 0.4% this week, but the equal-weighted S&P 500 jumped 0.7%.

- The Russell was DOWN 4% on Tuesday after the hotter than expected CPI report.

- In addition to the hot CPI reading, market participants also digested a below-consensus Retail Sales report for January, an unexpected drop in jobless claims to 212,000, and a hotter-than-expected PPI report for January.

-The 2-yr note yield settled 15 basis points higher this week to 4.65% in response to this week's data and the 10-yr note yield rose 11 basis points this week to 4.30%. (Briefing.com)

Japan Crypto News

- Japan inched closer to allowing venture capital firms and other investment funds to hold digital assets directly, after Prime Minister Fumio Kishida’s administration agreed to submit a revised bill to implement the change.

- His cabinet approved the text of a bill on Feb. 16 that seeks to partially amend the country’s industrial competitiveness enhancement act, according to a statement published on the Ministry of Economy, Trade and Industry’s website. The bill states that “measures will be taken to add cryptoassets to the list of assets that can be acquired and held by investment limited partnerships,” referring to a vehicle used by venture capital firms to secure capital for investments.

China

- China’s southern province of Hainan moved to cut down-payment ratio for first-time homebuyers, the latest region in the country to ease mortgage policies to boost slumping home sales.

- Minimum down payment for first homes was cut to 20% from 25%, according to a Monday report by Hainan Daily. The ratio for second homes remains unchanged at 30%, the outlet reported, citing a government notice without saying when the measure would go into effect.

More China

- China's market opened after the long Lunar New Year break with a thud.

- China looks to be still buying directly into markets to prop up

- Reports about pre-pandemic level spending on goods and travel, especially during the Lunar New Year did not lift the mood much

China's Newest Concern: Lie Flat

- "lie flat", a Chinese term used to describe people who work just enough to afford to spend their time on what they enjoy.

---- Not like Japan Inc of the 1980's

- Although there is no data on how many young Chinese are opting out of corporate jobs that they traditionally would have taken, the youth jobless rate rose to a record high of 21.