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George Kikvadze highlights rising stagflationary pressures as both inflation and producer prices surge.
He points to a producer price index increase of 6.0% year-on-year, nearly three times higher than expectations, and notes that the core PPI also doubled forecasts. Consumer price index growth of 3.8% was reported for the previous day. Real wages are described as negative, and Kikvadze suggests that China could help address some of these economic challenges.
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Kikvadze has recently commented on strong tech sector results, citing TSMC’s $35.9 billion Q1 revenue and 66.2% margins driven by AI demand. He has also reported that the AI bottlenecks portfolio rose 85 percent over the past year. These remarks follow a series of posts analyzing key drivers in the current market environment.