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…
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Source: Bloomberg
… reaffirming Beijing’s impotence at stimulating the all-important credit impulse which is barely above cycle lows…
Trump highlights comments by ‘Obama sycophant’ Eric Holder, continues pressing Senate GOP to nix filibuster
Pro-life center fights New Jersey attorney general’s ‘fishing expedition’ in Supreme Court battle
Chicago teachers union funneled millions to liberals while keeping members in the dark about finances
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Trump warns Honduras of ‘hell to pay’ if election count changes, presses officials to finish tally
DHS launches ‘Cyber Monday deal’ in retro 90s holiday ad: $1,000 for illegal immigrants who self-deport
CAIR spins anti-Israel narrative about Somali fraud as scrutiny grows
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Noem calls for ‘full travel ban’ on countries ‘flooding’ US with immigrants after DC attack
Spec ops chief ordered deadly Caribbean strike ‘in self-defense’ with Hegseth’s sign-off, White House says
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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 highlights comments by ‘Obama sycophant’ Eric Holder, continues pressing Senate GOP to nix filibuster
Pro-life center fights New Jersey attorney general’s ‘fishing expedition’ in Supreme Court battle
Chicago teachers union funneled millions to liberals while keeping members in the dark about finances
Stefanik blasts Johnson, GOP as ‘getting rolled’ by House Democrats
Florida officer shot in face during service call tied to mental health dispute; suspect killed
Trump warns Honduras of ‘hell to pay’ if election count changes, presses officials to finish tally
DHS launches ‘Cyber Monday deal’ in retro 90s holiday ad: $1,000 for illegal immigrants who self-deport
CAIR spins anti-Israel narrative about Somali fraud as scrutiny grows
Drug kingpin El Chapo’s son enters plea in multibillion-dollar drug trafficking case
US escalation with Maduro halts deportation flights to Venezuela
DHS reveals Illegal alien behind fatal crash was given license by deep blue state
Mamdani taps disgraced activist who said ‘one day we can abolish police’ to key public safety committee
Noem calls for ‘full travel ban’ on countries ‘flooding’ US with immigrants after DC attack
Spec ops chief ordered deadly Caribbean strike ‘in self-defense’ with Hegseth’s sign-off, White House says
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This is the equal weakest retail sales growth since 2003 and weakest Fixed-Asset Investment growth since 1998..
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 highlights comments by ‘Obama sycophant’ Eric Holder, continues pressing Senate GOP to nix filibuster
Pro-life center fights New Jersey attorney general’s ‘fishing expedition’ in Supreme Court battle
Chicago teachers union funneled millions to liberals while keeping members in the dark about finances
Stefanik blasts Johnson, GOP as ‘getting rolled’ by House Democrats
Florida officer shot in face during service call tied to mental health dispute; suspect killed
Trump warns Honduras of ‘hell to pay’ if election count changes, presses officials to finish tally
DHS launches ‘Cyber Monday deal’ in retro 90s holiday ad: $1,000 for illegal immigrants who self-deport
CAIR spins anti-Israel narrative about Somali fraud as scrutiny grows
Drug kingpin El Chapo’s son enters plea in multibillion-dollar drug trafficking case
US escalation with Maduro halts deportation flights to Venezuela
DHS reveals Illegal alien behind fatal crash was given license by deep blue state
Mamdani taps disgraced activist who said ‘one day we can abolish police’ to key public safety committee
Noem calls for ‘full travel ban’ on countries ‘flooding’ US with immigrants after DC attack
Spec ops chief ordered deadly Caribbean strike ‘in self-defense’ with Hegseth’s sign-off, White House says
Democrats open inquiry into Patel’s use of FBI jet
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 highlights comments by ‘Obama sycophant’ Eric Holder, continues pressing Senate GOP to nix filibuster
Pro-life center fights New Jersey attorney general’s ‘fishing expedition’ in Supreme Court battle
Chicago teachers union funneled millions to liberals while keeping members in the dark about finances
Stefanik blasts Johnson, GOP as ‘getting rolled’ by House Democrats
Florida officer shot in face during service call tied to mental health dispute; suspect killed
Trump warns Honduras of ‘hell to pay’ if election count changes, presses officials to finish tally
DHS launches ‘Cyber Monday deal’ in retro 90s holiday ad: $1,000 for illegal immigrants who self-deport
CAIR spins anti-Israel narrative about Somali fraud as scrutiny grows
Drug kingpin El Chapo’s son enters plea in multibillion-dollar drug trafficking case
US escalation with Maduro halts deportation flights to Venezuela
DHS reveals Illegal alien behind fatal crash was given license by deep blue state
Mamdani taps disgraced activist who said ‘one day we can abolish police’ to key public safety committee
Noem calls for ‘full travel ban’ on countries ‘flooding’ US with immigrants after DC attack
Spec ops chief ordered deadly Caribbean strike ‘in self-defense’ with Hegseth’s sign-off, White House says
Democrats open inquiry into Patel’s use of FBI jet
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.
