European shares experience a mixed performance as investors await key economic data. Congressman Derrick Van Orden claims Trump understands economics inside and out. Plus, China faces a critical challenge with rising youth unemployment. Also, the tech that will change the economics of biotech with AI-driven drug development.
Sources:
https://www.marketscreener.com/quote/index/STOXX-EUROPE-600-INDEX-EU-7477/news/European-shares-muted-ahead-of-more-economic-data-47789355/
https://www.news8000.com/news/van-orden-asks-voters-to-choose-trump-because-he-understands-economics-inside-and-out/article_30056e88-69a6-11ef-b62e-db9b5fb72e75.html
https://economictimes.indiatimes.com/news/international/us/the-biggest-economic-problem-china-is-facing-now-youth-unemployment/articleshow/113007869.cms
https://www.brownstoneresearch.com/bleeding-edge/the-tech-that-will-change-the-economics-of-biotech/
Outline:
(00:00:00) Introduction
(00:00:41) European shares muted ahead of more economic data
(00:02:23) Van Orden asks voters to choose Trump because he 'understands economics inside and out'
(00:04:46) The biggest economic problem China is facing now
(00:08:01) The Tech That Will Change the Economics of Biotech
Simply Economics
Mixed Performance in European Shares, Impact of Trump’s Economic Understanding
European shares experience a mixed performance as investors await key economic data. Congressman Derrick Van Orden claims Trump understands economics inside and out. Plus, China faces a critical challenge with rising youth unemployment. Also, the tech that will change the economics of biotech with AI-driven drug development.Sources:https://www.marketscreener.com/quote/index/STOXX-EUROPE-600-INDEX-EU-7477/news/European-shares-muted-ahead-of-more-economic-data-47789355/https://www.news8000.com/news/van-orden-asks-voters-to-choose-trump-because-he-understands-economics-inside-and-out/article_30056e88-69a6-11ef-b62e-db9b5fb72e75.htmlhttps://economictimes.indiatimes.com/news/international/us/the-biggest-economic-problem-china-is-facing-now-youth-unemployment/articleshow/113007869.cmshttps://www.brownstoneresearch.com/bleeding-edge/the-tech-that-will-change-the-economics-of-biotech/Outline:(00:00:00) Introduction(00:00:41) European shares muted ahead of more economic data(00:02:23) Van Orden asks voters to choose Trump because he 'understands economics inside and out'(00:04:46) The biggest economic problem China is facing now(00:08:01) The Tech That Will Change the Economics of Biotech
- Duration:
- 11m
- Broadcast on:
- 03 Sep 2024
- Audio Format:
- mp3
Good morning and welcome to Simply Economics. It's Tuesday, September 3rd. On today's show, European shares remain muted as investors await more economic data, and Van Orden urges voters to choose Trump because he understands economics inside and out. Plus we'll discuss the biggest economic problem China is currently facing. This coverage and more, up next. I'm David, and you're listening to Simply Economics. We start off with a look at European shares, which were flat on Tuesday as gains in industrials were offset by losses in miners. Investors are awaiting economic data that will shed more light on the monetary policy path for the Eurozone and the United States. For more, we're joined by our correspondent. What stood out to you in the European markets today? A few key things. The Pan-European Stocks 600 Index was flat, with German stocks inching just 0.1% higher after hitting a record close yesterday. Rolls-Royce provided the biggest boost to industrials rising over 4% after Cathay Pacific said planes with Rolls-Royce engines that had been inspected were expected to resume operation by Saturday. On the flip side, it looks like miners dragged down the index. What happened there? That's right, miners slid 0.6% as prices of non-ferrous metals fell. This was weighed down by a firm dollar and demand worries following weak manufacturing data from top consumer China. Partners Group also slipped over 6% of the bottom of the Stocks 600 after missing earnings expectations in the first half. Looking ahead, it seems like investors have their eye on some key economic indicators and central bank moves. What should we be watching for? Absolutely. Investors will be closely monitoring comments from several European central bank policy makers throughout the day for any signals on the ECB's next move at their September 12th meeting. In the US, the ISM Manufacturing Survey out later today and jobs data due on Friday will be crucial for the Federal Reserve's upcoming decision on interest rates. Thanks for the update on the economic situation in Europe. Shifting gears to US politics, Wisconsin Congressman Derek Van Orden is asking voters to consider the cost of enjoying the Labor Day weekend as they look ahead to the 2024 presidential election. Van Orden, a Republican, argues that electing Donald Trump over Kamala Harris will bring down prices on everyday items like groceries and gas. For more on this, we turn to our correspondent at Simply Economics. What is Congressman Van Orden's main economic argument here? Van Orden is essentially making a classic pocketbook argument to voters. He's saying that the prices of basic goods like food and fuel have gotten too high and he's laying the blame at the feet of Democrats, specifically Vice President Kamala Harris. Van Orden points to Harris casting the tie-breaking vote for the Inflation Reduction Act, which he claims led to the current high inflation. He's contrasting that with former President Donald Trump, who he says has proven to understand economics inside and out due to his business experience. But haven't most economists said the Inflation Reduction Act has had little to no impact on inflation? What's actually been driving inflation and the recent cooldown? That's right, the Congressional Budget Office said at the time the act was passed that its impact on inflation would be negligible. Most economists attribute the high inflation we saw to pandemic-related supply chain issues, strong consumer demand fueled by fiscal stimulus and high energy prices due to the war in Ukraine. The recent easing of inflation is generally attributed to improving supply chains, the Fed's aggressive interest rate hikes, and falling oil prices, not any provisions in the Inflation Reduction Act. Van Orden also touted Trump's business acumen as a selling point. But Trump and his companies have faced some legal issues related to their business practices, right? Yes, earlier this year Trump was convicted on 34 counts of falsifying business records in New York. Two of his companies, the Trump Corporation and Trump Payroll Corp, were also found guilty of criminal tax fraud. So while Trump certainly has extensive business experience, his record is not without controversy or legal problems. It seems like Congressman Van Orden is trying to tap into the economic anxiety many Americans are feeling and pin the blame on Democrats. But the economic reality appears to be quite a bit more complex than his portrayal. Thank you for helping break this down for us. Speaking of economic challenges, China is facing a major one with youth unemployment being the biggest issue that needs to be addressed urgently. New unproductive forces are playing a significant role in the rise of unemployment, which experts believe has the potential to push the country to the brink of recession. Chinese cities have also warned about the rising saturation of the employment market across various sectors. For more on this, we turn to our correspondent. Can you explain the scale of the unemployment problem in China? The unemployment situation in China is indeed alarming, particularly among the youth. White collar jobs are seeing massive layoffs across the country, with major companies like Tesla, IBM and ByteDance downsizing their workforce. The demand for jobs is simply too large and the market is becoming increasingly saturated. This is a significant concern for the Chinese economy, as a decrease in workforce demand could potentially lead to a recession, if not addressed promptly. What role can emerging technologies like AI play in addressing this issue? AI and other emerging technologies are crucial for meeting the rising youth employment demand in China and other Asian countries. These sectors require a younger workforce, making them a potential solution to the current job crisis. However, it's important to note that relying solely on these technologies may not be enough to meet the inflated rate of job demand. A multifaceted approach is necessary to combat the growing need for white collar jobs. Can you provide some insight into the scale of layoffs happening in China, particularly in major companies? Layoffs are happening at a massive scale across China, primarily in white collar jobs. Major companies like Tesla, IBM and ByteDance, which have a significant presence in the country, are downsizing their workforce. ByteDance, for example, has multiple offices in China and possesses one of the largest workforces in the country. The fact that even such large companies are resorting to layoffs is a clear indication of the severity of the unemployment crisis. What steps do you think the Chinese government and industries need to take to address this pressing issue? Addressing the youth unemployment crisis in China will require a concerted effort from both the government and industries. The government needs to implement policies that encourage job creation and support small and medium-sized enterprises, which are the backbone of the economy. Industries, on the other hand, must focus on innovation and adapting to the changing market demands. They should also invest in training and upskilling their workforce to ensure they remain competitive in the job market. Additionally, a greater emphasis on entrepreneurship and self-employment could help alleviate some of the pressure on the job market. Thank you for your insights on this critical issue facing China's economy. It's clear that tackling youth unemployment will require a multi-pronged approach and collaboration between the government and industries. Shifting gears to a breakthrough in medical technology, a private biotech company called Insilico has made significant strides in using artificial intelligence to develop a potential therapy for a rare and devastating lung disease called idiopathic pulmonary fibrosis or IPF. IPF impacts about 5 million people worldwide and most patients succumb to the disease within 4 to 5 years of diagnosis with no known cure. Bella, can you tell us more about how Insilico used AI in this drug development process? Absolutely, David. What makes Insilico's research so unique is that they utilize generative AI and deep neural networks throughout the drug development process from the earliest research stages all the way to preclinical trials. While machine learning has been used in drug development before, Insilico appears to be the biotech company that has most heavily leveraged this cutting-edge technology. The results they've achieved so far are quite remarkable. So what exactly did Insilico discover using this AI-driven approach to drug development for IPF? Insilico's research, which was recently published in the scientific journal Nature, proposed a small molecule inhibitor that targets a protein called TNI-Cake. This TNI-C inhibitor showed promise in targeting fibrosis or scarring in both preclinical and clinical models of IPF. Fibrosis is a key driver of the lung damage and respiratory failure seen in IPF patients. By identifying a potential way to inhibit this harmful process using their AI platform, Insilico has opened up an exciting new avenue for IPF treatment. Why are complex and rare diseases like IPF particularly challenging to develop treatments for? There are a few reasons. First, the cause of IPF is unknown, which makes it much more difficult to identify therapeutic targets. Second, because these diseases are rare, it can be challenging to recruit enough patients for clinical trials and gather sufficient data to advance drug development. That's why Insilico's AI-based approach is so exciting. It has the potential to accelerate the discovery of promising drug candidates and streamline the development process for rare diseases like IPF that have largely eluded effective treatments to date. This breakthrough by Insilico Medicine demonstrates how AI is ushering in a new era of faster, smarter drug development, especially for complex diseases with high unmet need. Thanks for breaking this down for us, Bella. And with that promising note, we wrap up our stories for today. Thanks for listening to Simply Economics. We'll see you back here tomorrow. [MUSIC] [BLANK_AUDIO]