Q1 GDP; Xi-Scholz; National Security; Microsoft and G42; Donkeys
Summary of today’s top items
Q1 GDP beats expectations - First quarter real GDP growth was officially 5.3% year over year, versus estimates of 4.9%, so policymakers should be pleased that they have made a good start towards the 2024 target of “around 5%” GDP growth. There were some concerning areas in the data, especially around retail consumption and property investment, and January and February were stronger than March, but the data is good enough to guess that the leadership will remain confident in the policies set over the last several months and not resort to broader stimulus or make larger shifts in economic policy.
Xi-Scholz meeting - Xi hit on the expected themes in his meeting with German Chancellor Scholz while pushing back on the idea that China has an overcapacity issue. According to the readout Xi said that “mutually beneficial cooperation between China and Germany is not a “risk,” but the guarantee for a stable bilateral relationship and an opportunity for the future. The…