FT News Briefing Salary advancements: a double-edged sword?
May 18, 2022
Global fund managers are holding the highest cash reserves since 9/11, signaling concerns over market stability. Meanwhile, China's economy is struggling heavily under COVID lockdowns. The discussion also highlights how inflation disproportionately affects certain workers. Salary advancement schemes aimed to help financially stressed employees are examined, revealing their potential drawbacks and regulatory challenges. These insights spark a debate on whether these solutions truly alleviate worker struggles or complicate them further.
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Investor Sentiment
- Global fund managers' cash holdings exceed 6%, highest since 9/11.
- This indicates growing negativity towards stock market outlook and potential profit weakening.
China's Economic Slowdown
- China's zero-COVID policy and lockdowns severely hurt economic activity.
- Retail sales and industrial production dropped significantly, impacting global growth.
Shanghai Lockdown Impact
- Businesses in Shanghai face closure due to prolonged lockdowns and lack of income.
- The pressure to pay staff despite no customer business adds to the problem.