Finance International News Opinons Politics Trade

Trade Wars Slam Chinese Retail Sales, Investment Growth Weakest In 21 Years

web_Trade Wars

While it will hardly come as a surprise to anyone following China’s dismal attempts at reflating the economy, which on Monday we learned translated into the lowest Aggregate Financing print since the series was established…


Trump says ‘we’ll see what happens’ when asked about possibility of striking Venezuela amid rising tensions
Zohran Mamdani lands key endorsement in New York City mayoral race
Knives are out for embattled FBI Director Kash Patel, despite Trump support
FBI investigating leftist groups for possible ties to Charlie Kirk’s assassination: source
School resource officer removed after ‘unacceptable’ posts about Charlie Kirk assassination
Trump Puts Democrat Senator in His Place for Rejecting God-Given Rights
After a 240-Foot Fall and Days Alone in a Ravine, Teen Miraculously Returns Home to Recover
New video appears to show alleged Charlie Kirk assassin near campus hours before shooting
Lankford says firings over Kirk death celebrations proof ‘cancel culture still persists’
Elon Musk Confronts Colorado Governor Over Career Criminal Released from Jail
Perfect Priorities: West Point Nixes Tom Hanks Award Ceremony Because It Won’t Help Create ‘World’s Most Lethal Force’
Eric Trump says ‘sleeping enemy’ has been awoken after Kirk assassination
Charlie Kirk assassination suspect under ‘special watch’ in custody, being kept in separate housing unit
Deep Dive: We’ve Learned Who Appointed Magistrate Who Let Decarlos Brown Allegedly Kill Iryna Zaruska – It All Makes Sense Now
Turning Point USA says campus chapter requests surge to over 32,000 after Kirk’s assassination


Source: Bloomberg

… reaffirming Beijing’s impotence at stimulating the all-important credit impulse which is barely above cycle lows…


Trump says ‘we’ll see what happens’ when asked about possibility of striking Venezuela amid rising tensions
Zohran Mamdani lands key endorsement in New York City mayoral race
Knives are out for embattled FBI Director Kash Patel, despite Trump support
FBI investigating leftist groups for possible ties to Charlie Kirk’s assassination: source
School resource officer removed after ‘unacceptable’ posts about Charlie Kirk assassination
Trump Puts Democrat Senator in His Place for Rejecting God-Given Rights
After a 240-Foot Fall and Days Alone in a Ravine, Teen Miraculously Returns Home to Recover
New video appears to show alleged Charlie Kirk assassin near campus hours before shooting
Lankford says firings over Kirk death celebrations proof ‘cancel culture still persists’
Elon Musk Confronts Colorado Governor Over Career Criminal Released from Jail
Perfect Priorities: West Point Nixes Tom Hanks Award Ceremony Because It Won’t Help Create ‘World’s Most Lethal Force’
Eric Trump says ‘sleeping enemy’ has been awoken after Kirk assassination
Charlie Kirk assassination suspect under ‘special watch’ in custody, being kept in separate housing unit
Deep Dive: We’ve Learned Who Appointed Magistrate Who Let Decarlos Brown Allegedly Kill Iryna Zaruska – It All Makes Sense Now
Turning Point USA says campus chapter requests surge to over 32,000 after Kirk’s assassination

See also  Taiwanese president says Trump is bolstering support for island amid China’s expansionism

Source: Bloomberg

… tonight’s macro data dump from China is expected to show continued slowing from Q3’s disappointing GDP print.

Bloomberg Economics’ Chang Shu notes that the October activity data are likely to show weakness continuing to spread across China’s economy, as companies adjusted to an additional 15% U.S. tariffs on $110 billion of Chinese goods in September.

  • China Industrial Production MEET +5.6% YoY vs +5.6% YoY Exp
  • China Retail Sales MISS +7.2% YoY vs +7.8% Exp
  • China Fixed Asset Investment MISS +5.2% YoY vs +5.4% Exp.
  • China Property Investment FELL to +10.3% YoY from +10.5% YoY
  • China Surveyed Jobless Rate FELL to 5.1% from 5.2%


Trump says ‘we’ll see what happens’ when asked about possibility of striking Venezuela amid rising tensions
Zohran Mamdani lands key endorsement in New York City mayoral race
Knives are out for embattled FBI Director Kash Patel, despite Trump support
FBI investigating leftist groups for possible ties to Charlie Kirk’s assassination: source
School resource officer removed after ‘unacceptable’ posts about Charlie Kirk assassination
Trump Puts Democrat Senator in His Place for Rejecting God-Given Rights
After a 240-Foot Fall and Days Alone in a Ravine, Teen Miraculously Returns Home to Recover
New video appears to show alleged Charlie Kirk assassin near campus hours before shooting
Lankford says firings over Kirk death celebrations proof ‘cancel culture still persists’
Elon Musk Confronts Colorado Governor Over Career Criminal Released from Jail
Perfect Priorities: West Point Nixes Tom Hanks Award Ceremony Because It Won’t Help Create ‘World’s Most Lethal Force’
Eric Trump says ‘sleeping enemy’ has been awoken after Kirk assassination
Charlie Kirk assassination suspect under ‘special watch’ in custody, being kept in separate housing unit
Deep Dive: We’ve Learned Who Appointed Magistrate Who Let Decarlos Brown Allegedly Kill Iryna Zaruska – It All Makes Sense Now
Turning Point USA says campus chapter requests surge to over 32,000 after Kirk’s assassination

This is the equal weakest retail sales growth since 2003 and weakest Fixed-Asset Investment growth since 1998..

See also  Charlie Kirk’s widow tells America: ‘You have no idea what you have unleashed’

Source: Bloomberg

This data confirms that China’s economy slowed further in October, signaling, as Bloomberg’s Miao Han notes, that policy makers’ piecemeal stimulus is failing to boost output and investment amid ongoing trade tensions with the U.S. and subdued domestic demand.

As a reminder, there was the surprising divergence in the two manufacturing PMI readings, with the “official” version weakening, and the Caixin-labeled version strengthening.


Trump says ‘we’ll see what happens’ when asked about possibility of striking Venezuela amid rising tensions
Zohran Mamdani lands key endorsement in New York City mayoral race
Knives are out for embattled FBI Director Kash Patel, despite Trump support
FBI investigating leftist groups for possible ties to Charlie Kirk’s assassination: source
School resource officer removed after ‘unacceptable’ posts about Charlie Kirk assassination
Trump Puts Democrat Senator in His Place for Rejecting God-Given Rights
After a 240-Foot Fall and Days Alone in a Ravine, Teen Miraculously Returns Home to Recover
New video appears to show alleged Charlie Kirk assassin near campus hours before shooting
Lankford says firings over Kirk death celebrations proof ‘cancel culture still persists’
Elon Musk Confronts Colorado Governor Over Career Criminal Released from Jail
Perfect Priorities: West Point Nixes Tom Hanks Award Ceremony Because It Won’t Help Create ‘World’s Most Lethal Force’
Eric Trump says ‘sleeping enemy’ has been awoken after Kirk assassination
Charlie Kirk assassination suspect under ‘special watch’ in custody, being kept in separate housing unit
Deep Dive: We’ve Learned Who Appointed Magistrate Who Let Decarlos Brown Allegedly Kill Iryna Zaruska – It All Makes Sense Now
Turning Point USA says campus chapter requests surge to over 32,000 after Kirk’s assassination

Source: Bloomberg

Dow futures are exuberantly surging overnight as yuan continues to slide – disagreeing vehemently over the chances of a US-China trade deal after their joint celebrations last week…

Source: Bloomberg

Finally, as we just noted, The National Institution for Finance and Development (NIFD) on Wednesday said that China’s economic growth rate will slow to 5.8% in 2020 from an estimated 6.1% this year, a number which is already quite ambitious, not to say artificially goalseeked.


Trump says ‘we’ll see what happens’ when asked about possibility of striking Venezuela amid rising tensions
Zohran Mamdani lands key endorsement in New York City mayoral race
Knives are out for embattled FBI Director Kash Patel, despite Trump support
FBI investigating leftist groups for possible ties to Charlie Kirk’s assassination: source
School resource officer removed after ‘unacceptable’ posts about Charlie Kirk assassination
Trump Puts Democrat Senator in His Place for Rejecting God-Given Rights
After a 240-Foot Fall and Days Alone in a Ravine, Teen Miraculously Returns Home to Recover
New video appears to show alleged Charlie Kirk assassin near campus hours before shooting
Lankford says firings over Kirk death celebrations proof ‘cancel culture still persists’
Elon Musk Confronts Colorado Governor Over Career Criminal Released from Jail
Perfect Priorities: West Point Nixes Tom Hanks Award Ceremony Because It Won’t Help Create ‘World’s Most Lethal Force’
Eric Trump says ‘sleeping enemy’ has been awoken after Kirk assassination
Charlie Kirk assassination suspect under ‘special watch’ in custody, being kept in separate housing unit
Deep Dive: We’ve Learned Who Appointed Magistrate Who Let Decarlos Brown Allegedly Kill Iryna Zaruska – It All Makes Sense Now
Turning Point USA says campus chapter requests surge to over 32,000 after Kirk’s assassination

See also  Tom Homan clashes with Mika Brzezinski over ICE near a Spanish Mass and ‘disappearing people’ claims

This, as the SCMP notes, is at the bottom end of China’s target range of 6 to 6.5% growth for 2019, and further indicates the continued downward pressure on the economy from the trade war with the United States as well as domestic headwinds.

“The economic slowdown is already a trend,” said former central bank adviser Li Yang, who heads the institute that is affiliated to the Chinese Academy of Social Sciences (CASS).

We must resort to deepened supply-side structural reform to change it or smooth the slowdown, rather than solely rely on monetary or fiscal stimulus.”

The institute’s forecast is in line with the International Monetary Fund, and indicates the challenge that policymakers face to achieve the above 6% growth rate needed in 2019 and 2020 to reach the government’s goal of doubling GDP in 2020 compared to its 2010 level.

As a reminder, a GDP growth rate below 6% would be the first time since the aftermath of the 1989 Tiananmen crackdown.

Finally, we note that Navarro and his trade hawks in the White House will be pleased at these weak numbers. President Trump has repeatedly said that China needs a deal more than the U.S. does, and these numbers as leverage in their negotiations.

Story cited here.

Share this article:
Share on Facebook
Facebook
Tweet about this on Twitter
Twitter