Stresses bubble up into street protests

<p>Kia ora,</p><p>Welcome to Tuesday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.</p><p>I'm David Chaston and this is the International edition from Interest.co.nz.</p><p>Today we lead with news stress is driving protests in countries as diverse as the Netherlands and China.</p><p>But first, there was a <a href="https://www.treasurydirect.gov/instit/annceresult/press/preanre/2022/R_20220711_3.pdf" target="_blank"><strong>US Treasury 3 year bond auction</strong></a> earlier today delivering higher yields. It was very well supported delivering a median yield of 3.04%, up from 2.87% at the <a href="https://www.treasurydirect.gov/instit/annceresult/press/preanre/2022/R_20220607_1.pdf" target="_blank"><strong>prior equivalent event</strong></a> a month ago.</p><p>In the US we should also note that now more than 5% of new car sales are electric, which is considered <a href="https://www.bloomberg.com/news/articles/2022-07-09/us-electric-car-sales-reach-key-milestone?srnd=premium" target="_blank"><strong>a tipping point</strong></a> from where mass adoption of EVs will rise fast from here. (In New Zealand we are at about 3%.)</p><p>More electric demand is problematic for some states there. Demand due to summer heat alone is drawing <a href="https://www.dallasnews.com/news/politics/2022/07/10/ercot-issues-alert-for-possible-rolling-blackouts-monday/" target="_blank"><strong>warnings</strong></a> in Texas that they face blackouts again this year.</p><p>Wall Street is getting ready for their Q2 earnings reports and expectations are low for what is to come. Overall, earnings growth of +4.3% is anticipated for this upcoming set, the lowest gains since 2020. Big banks and other financial companies will dominate the early part of the scheduled releases later this week. PepsiCo will report tomorrow and Delta Air Lines on Thursday, NZT. They start a flood of releases.</p><p>In Japan, <a href="https://www.esri.cao.go.jp/jp/stat/juchu/2022/2205juchu.html" target="_blank"><strong>m