Buy JPY, hold CNH

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We are now neutral on CNH/USD

David P. Goldman argues that the CNH/USD exchange rate is primarily influenced by US 10-year Treasury yields, rather than Chinese monetary policy, suggesting a shift to a neutral stance on CNH. In contrast, the JPY/USD exchange rate is driven largely by inflation expectations.

Kursk offensive stalls, Donbass advance accelerates

James Davis reports that Russian forces have stabilized the front lines in the Kursk region, halting the Ukrainian offensive while escalating their own attacks in Donbass. Despite significant Ukrainian efforts, their operation in Kursk has failed to achieve its strategic objectives.

BYD overtakes Nissan and Honda, ties up with Huawei

Scott Foster reports that BYD has risen to become the seventh-largest automaker globally, surpassing Suzuki, Nissan, and Honda, with a 40% year-over-year increase in sales in Q2 2024. BYD continues to expand, building factories overseas despite trade barriers.