Welcome back, readers. You may have noticed that speculation about the dollar's global dominance has emerged in recent weeks. Today we're breaking down how China's yuan could emerge as a reserve currency competitor for the dollar and what that means.
Let's get into it.
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1. The yuan could challenge the dollar on the world stage. But China would have to win the trust of other nations. There's a few ways it could do that, according to an expert on China's economy.
China would have to open up its market and loosen government oversight, professor Baizhu Chen of the University of Southern California told Insider, noting that historically, no currency that's been heavily controlled has become dominant in global reserves.
That means China must enact reforms in the bond market and refrain from currency manipulation, among other moves.
"But whether the yuan could be perceived as a store of value — a safe haven during uncertainty or war — that is a much more difficult thing," Chen said.
Meanwhile, a new report from the IMF revealed that the dollar's share of international reserves has been in decline over the past two decades as central banks have looked to diversify their holdings.
But to Professor Chen, it wouldn't necessarily be a bad thing if the world had a wider selection of reserve currencies to rely on— find out why.
In other news:
2. Global shares are looking weaker today. New lockdowns in China have seen oil slide by 4%, while investors focus on new talks between Russia and Ukraine in this data-packed week. Take a look at what's happening on the markets.
3. Earnings on deck: Dave & Buster's, Trinity Biotech, Jefferies Financial Group, all reporting.
4. These alternative asset classes will provide steady payouts over the next decade, according to a global strategist at JPMorgan Asset Management. The markets expert anticipates a slow and underwhelming decade for US stocks — see which six asset classes he's most bullish on.
5. Markets giants Larry Fink and Howard Marks said the Ukraine conflict will end globalization. This war is making companies and countries rethink their reliance on others, they said. These are the dramatic consequences that deglobalization would have on the economy — and for investors used to a highly integrated world.
6. A new ETF is investing in companies based on the character of their CEOs, and they left off a notable name. ROC Investments analyzes the public language of company chiefs to score overall character. Based on the firm's proprietary tools, Tesla's Elon Musk didn't make the cut.
7. Janet Yellen said crypto has its benefits, and the Treasury is looking into the digital asset space. On Friday, the US Secretary of the Treasury told CNBC that she remains skeptical about crypto due to its use in illicit activities — but still wants to provide guidance on regulations that fosters "healthy innovation."
8. These six cryptos are set to weather the 2022 bear market, according to the founder of research platform Token Metrics. Ian Balina also broke down why these specific blockchain projects are the tokens that can compete with ethereum. Get the details here.
9. The CEO of a $1.5 billion asset manager breaks down why she thinks stocks have reached a "tradeable bottom." Sylvia Jablonski also shared the five bargains she thinks are worth scooping up — and two trades that can help investors capitalize on shifting trends.
10. Certain investments are set to fare better during a time of aggressive rate hikes, war, and a worldwide energy shock. Macro Hive's Bilal Hafeez explained that cash and commodities might be the best investments during the current landscape. See all three charts that show the experts' investment breakdown.
Curated by Phil Rosen in New York. (Feedback or tips? Email [email protected] or tweet @philrosenn.)