Biden will propose a $6 trillion budget

US President Joe Biden plans to propose a $6 trillion budget for the 2022 fiscal year, spending money on infrastructure, education and health care, foreign media reported on May 27. The proposal will be presented on Friday.

Mr. Biden's plan would raise the top capital gains tax rate on households earning more than $1 million to 43.4 percent from 23.8 percent. He would also change the tax rules on unrealized capital gains that are held to death.

Separately, US Treasury Secretary Janet Yellen said last night that the Internal Revenue Service will receive an additional $417 million to implement its fiscal year 2022 budget plan.

As of this morning's close, the three major indexes in the United States mixed. The Dow Jones Industrial Average gained 0.40% to 34,462.67; The Nasdaq fell 0.01% to 13,736.28; The S&P 500 was up 0.11% at 4,200.70.

The yuan appreciated to 6.3

6.3 yuan era came, the appreciation of the RMB is still continuing.

On May 28, the central parity rate of RMB exchange rate in the interbank foreign exchange market was 6.3858 yuan to 1 dollar, which was 172 basis points higher than the previous trading day and entered the era of 6.3 yuan, hitting a new high in nearly three years.

In addition, the exchange rate of the onshore RMB to the US dollar and the offshore RMB to the US dollar has been in the era of 6.3 yuan, and the offshore RMB to the US dollar exchange rate once broke through the 6.37 yuan mark.

Looking back a year ago on May 28, the central parity rate was 7.1277 against the dollar. Today it is 6.3858, implying an appreciation of 7,419 basis points over the course of a year.

The appreciation of the RMB, the more valuable the money in hand, good for traveling abroad, shopping, study abroad, etc., also good for import enterprises, but the export will be under pressure.

The central parity rate of the RMB against the US dollar.

For our export textile foreign trade enterprises, the pressure of this mountain, business becomes more difficult to do. Since April, the yuan has continued to strengthen against the U.S. dollar, and the yuan rose again after May Day. There are a lot of textile foreign trade people did not timely settlement, missed the opportunity, want to wait for the RMB exchange rate after the settlement. Who thought, the RMB exchange rate soaring, and then look back, at that time did not settle foreign trade people, now regret to have intestines are green.

At the same time, the appreciation of RMB, for the global textile industry, China's competitive advantage declined, the export situation slightly deteriorated, to the original weak textile foreign trade market increased some pressure. Since last year, the foreign trade market has been slightly depressed, many customers are long-term wait-and-see, order hesitation, now the appreciation of the RMB, once again aggravate wait-and-see sentiment. Foreign trade enterprises old Master Bao manager said that after the May Day, after the appreciation of the RMB, the customer orders have become less, many are waiting and seeing, feel that the price quoted by the current exchange rate is not appropriate, do not place the order.

Sea freight skyrocketing, but the shipper does not look at the price, the first order again!

Recently, the escalating situation of COVID-19 in India has directly affected the sea and air transport market, and the shipping price has changed significantly and reached a new record high. A cabin is difficult to find, many shippers have not look at the price, booking to ensure the first space.

At present, the cargo space of the Guangzhou-Shenzhen route to India and Pakistan continues to be tight. The price of air freight has increased by more than 100% within half a month, and the price of sea freight has also increased by more than 30%.

Due to the severity of the epidemic in India, some countries have banned the entry of seafarers who have visited India, and some companies have stopped recruiting Indian seafarers. Industry insiders said the restrictions could have a big impact on the already cash-strapped international shipping industry.

Cotton yarn shipments have cooled downstream export wind gradient

According to the feedback from cotton yarn traders in the light textile market of Guangdong, Jiangsu and Zhejiang, since late May, except for the inquiries and shipments of OE16S, OE21S, OE26S, C32S and C40S with medium and high matching, the transactions of low-count OE yarn, ring spinning yarn and high-count yarn of 60S and above have slowed down compared with the early and middle of May. Some cotton with high grade, quality index is strong but the price on the high side of the cotton yarn shipment difficulty rises.

A medium-sized cotton factory in Anhui said that in the past week or more downstream weaving, fabrics, clothing customers inquiry, order of the initiative to drop, C26S, C32S, C40S again appeared the phenomenon of storage, but in addition to OE yarn quotation slightly 100-200 yuan/ton down, other general, combed yarn ex-factory price maintained in early May level; But with the CF2109 contract of Zheng cotton effectively broken 15,500 yuan/ton, cloth factories, traders asked the voice of the cotton factory to reduce the price, profit is obviously rising, cotton price "only with Zheng cotton rise, not with Zheng cotton fall" situation is expected to break.

According to the investigation of several small and medium-sized cotton mills in Zibo, Shandong Province and Zhengzhou, Henan Province, the situation of receiving and arranging orders in recent half a month has become worse than that before mid-May. The proportion of "short, small and urgent delivery" orders is high, and the number of medium and long-term orders is small. Is spinning profit is still high, cotton, polyester staple fiber and other raw materials and cotton yarn, grey cloth finished tired, pressure is not big, but along with the main ICE contracts below 82 cents/pound, zheng cotton CF2109 open 15500 yuan/ton, procurement enterprises, retailers sharply demand at home and abroad, the phenomenon of lower order quantity is more and more obvious, large spinning clothing enterprises gradually mess, Can send, can entrust processing orders continued to decline.

Market wait-and-see sentiment is strong, weaving trade enterprises weak performance

As the U.S. government to xinjiang cotton products import ban enforcement of tightening, not only the international spinning clothing brands increasingly cautious, purchaser orders, domestic export-oriented enterprises, the co-packer also take more measures to reduce risks (including single, abandon, etc.), the United States department of the customs stop the import of a batch of uniqlo shirt for examination and approval, However, the recent sharp appreciation of RMB, rising sea freight and the shortage of shipping space all make Chinese textile and clothing enterprises' enthusiasm to receive medium and long-term orders from Europe, America, Japan and other countries drop continuously. Plus from India, Bangladesh and other orders for home textile, bedding, such as low value-added products, China's low corporate profits even "loss-leader", therefore, the stimulating effect of the so-called southeast Asia order back as countries such as India to effectively control the outbreak, spinning clothing enterprise to return to work and production quickly and fade.

At present, the global overall economic situation is still weak, domestic textile trade orders have always been lukewarm. Wang, who exports to Japan, said that since the epidemic, the rhythm of the entire order has completely changed, most of the time the customers are waiting and seeing, and there are very few real orders. The recent worsening of the epidemic in Japan, the increasing wait-and-see mood, coupled with the advent of the low season, the list is gradually reduced.

In addition to the direct impact on the foreign trade market, the domestic trade market is also under a lot of influence imperceptibly. The severity of the epidemic in foreign countries is like a time bomb, which keeps people on tenterest. The textile market is also cautious. Orders are mostly placed in the mode of "small batch and many batches". In the past, the quantity of stockpiling and stockpiling is also decreasing. Domestic clothing enterprises also wait and see a strong mood, after proofing is not the sea is a long time to wait for small batch orders.