Trump's angry remarks shocked the United States.

After Musk, the world's richest man, warned of an "assassination", the excited remarks of former US President Donald Trump once again sparked public opinion in the United States. A few days ago, Trump angrily criticized on social media that Biden's Democratic Party colluded with "big technology companies" to deal with him in the 2020 US election. Since "such a large-scale fraud" occurred in the US election, all rules, statutes and regulations, even the Constitution of the United States, can be terminated. The remarks directly shook US politics, and Trump was slammed by Democrats.

Back to the market, the current investment outlook report of major institutions on 2023 is one of the focuses of the market. On December 5, local time, Fitch, one of the three major international rating agencies, warned in a report that the economies of the euro zone and the United Kingdom would enter recession in late 2022, while the United States would begin recession in the second to third quarters of 2023.

In addition, the outlook of foreign giants on Chinese assets in 2023 has also attracted market attention. Among them, Morgan Stanley's latest report raised the rating of Chinese stocks to "overweight", which is the first time that Morgan Stanley has upgraded Chinese stocks since January 2021. A new bull market cycle for Chinese stocks is beginning, the report said. At the same time, other Wall Street giants have become increasingly vocal about Chinese assets. Among them, analysts from Goldman Sachs Group, Citigroup, Bank of America Corporation, JPMorgan Chase & Co and other institutions have said that investors should change their attitude towards Chinese stocks.

American politics is shaken

The "Twitter profile" that sparked public opinion in the United States continues to ferment.

On December 3, local time, Trump complained on his social platform "Real Social" that he would only lose the 2020 US election if he suffered injustice, the Global Times reported on December 6, citing CNN. He accused Biden's Democratic Party of colluding with "big technology companies" to deal with him.

In his speech, Trump said angrily that since "such a large-scale fraud" would occur in the US election, all rules, statutes and regulations, including the provisions of the US Constitution, could be terminated.

The report said that the "fuse" that led to Trump's outburst was the "Twitter profile" just exposed by Elon Musk, CEO of Twitter. It shows that Twitter deleted negative reports about US President Biden's son Hunt Biden during the 2020 election, including a series of scandals such as business dealings, drug use, prostitution, private life chaos and so on.

Brokerage China previously reported "all-American fryer!" The world's richest man is at high risk of being assassinated? Just revealed the son of Biden scandal! The European Union has hit hard again! South Korea's president warned: comparable to the "nuclear threat" mentioned, local time on December 3, Musk in a two-hour online conversation highlighted the details of the "Twitter profile" and the whole process.

Trump's latest statement directly pushes this "Twitter profile" time to the new best part, in which the talk of "ending the Constitution" directly shocked US politics.

On December 4, local time, White House Deputy Press Secretary Bates issued a statement saying Trump should be "universally condemned." Bates further said that the US Constitution is a sacrosanct document that has guaranteed freedom and the rule of law in the United States for more than 200 years, and that "attacking the Constitution and everything it represents is a curse on the soul of our country."

In addition, Hakeem Jeffries, the soon-to-be Democratic leader of the House of Representatives, directly attacked Trump's remarks as "strange and extreme". Democratic Congressman Helena called Trump's remarks the latest example of undermining American democracy. "this is the former president's latest, very explicit attack on American democracy."

As a whistleblower of the Twitter profile, Musk also seems to be worried about things getting out of control. After Trump spoke, Musk quickly tweeted: "the Constitution of the United States is greater than any president," and "the war is over," the US Axios news network reported.

White House Press Secretary Jean-Pierre dodged the issue when asked at a news conference on December 5 whether the White House thought it was appropriate to delete the news about the son of then presidential candidate Biden Biden, Russia Today reported.She suggested that Mr Musk had ulterior motives in leaking documents discussed within the company.

Recession warnings in Europe and the United States

Whenever the investment clock enters December, the Wall Street giant's 2023 investment outlook report is the focus of the market.

Fitch, one of the big three international rating agencies, released its December Global Economic Outlook report on December 5, local time, in which it downgraded its global GDP forecast for 2023 again, citing increased efforts by central banks to fight inflation and a deteriorating outlook for the property market in major economies.

Fitch's latest forecast for global GDP growth in 2023 is 1.4 per cent, down from its 1.7 per cent forecast in September.

Among them, the recession warning in Europe and the United States attracted market attention. In the report, Fitch predicts that the economies of the euro zone and the UK will enter recession in late 2022, while the US will begin recession in the second to third quarters of 2023. The unemployment rate in the United States and Britain is expected to rise to more than 5 percent in 2023.

In terms of the full-year dimension, Fitch forecasts that the US economy will still grow positively in 2023, at about 0.2 per cent, but lower than the previous forecast of 0.5 per cent, on the grounds that the pace of monetary policy tightening by the Federal Reserve has accelerated.

In addition, Fitch expects eurozone economic growth of 0.2 per cent in 2023, higher than the previous forecast of-0.1 per cent, on the grounds that Europe's gas crisis has eased, but the risk is that a bigger ECB rate hike could put pressure on demand.

As food and energy prices stabilise, Fitch expects headline inflation to fall sharply next year, but core inflationary pressures will last longer.

As for the monetary policy outlook of central banks in Europe and the United States, Fitch predicts that the world's major central banks will not cut interest rates until 2024.

Meanwhile, the agency's latest forecast shows that Fed interest rates will peak at 5 per cent, up 100 basis points from September's forecast; the ECB's peak at 3 per cent, also up 100 basis points from September's forecast; and the Bank of England's peak at 4.75 per cent, up 150 basis points from September's forecast.

Brian Coulton, chief economist at Fitch, said it turned out to be harder than expected to curb inflation and central banks had to step up their efforts to fight inflation, which is bad for economic growth.

The voice of singing too much

The outlook of foreign giants on Chinese assets in 2023 is also another focus topic for the market.

A report by Morgan Stanley attracted market attention on December 4, local time. The report upgraded the rating of Chinese stocks from "holding wait-and-see" to "overweight". It is worth mentioning that this is the first time that Morgan Stanley has upgraded Chinese stocks since January 2021.

In the report, Morgan Stanley said that a new bull market cycle for Chinese stocks is beginning, and it is recommended to increase the allocation of offshore Chinese stocks.

It also raised its target for the MSCI China Index from 59 to 70 by the end of 2023 and the Hang Seng Index to 21200 from 18200. The new target price means a potential increase of more than 10 per cent.

In addition to Morgan Stanley, other Wall Street giants are increasingly vocal about Chinese assets. Among them, analysts from Goldman Sachs Group, Citigroup, Bank of America Corporation, JPMorgan Chase & Co and other institutions have said that investors should change their attitude towards Chinese stocks and prepare for their return to the market.

Goldman Sachs Group expects the Chinese stock market to outperform the world in 2023, and the MSCI China and CSI 300 index will achieve a return of 16% in 2023. He believes that Chinese stocks will outperform other markets in 2023 and advises investors to increase their holdings of Chinese stocks.

Bank of America Corporation pointed out that he already has a "tactical" positive attitude towards China, while JPMorgan Chase & Co expects the MSCI China index to rise by 10% in 2023, driven by a 14% increase in earnings per share and a target price-to-earnings ratio of 10.5 times.

Standard Life Insurance (abrdn Plc) also sent a clear signal that now is a good time to buy Chinese stocks. Rene Buehlman, the agency's Asia-Pacific chief executive, said that at the very least, it can be guaranteed that Chinese stocks are not valued at a high level and that investors should return to China.

A clearer signal is that foreign investors have begun to allocate Chinese assets. In the past few weeks, some ETF, which focuses on the Chinese market, has seen a surge in call option activity.

Of this total, the $7.3 billion iShares MSCI china ETF rose about 32% in November, with inflows of about $567 million. The fund tracks the MSCI China Index, which measures the performance of major Chinese companies.

The $5.8 billion KraneShares CSI china internet fund has also risen 48 per cent in the past month, with subscriptions rising to their highest level since June. Although there have not been significant inflows into the ETF, call options have risen to their highest level since June.