No, Xi’s China Is Not ‘The Alternative’
"China is the Alternative," read the title of a somewhat dispiriting blog post published Friday morning in Hong Kong.
It was penned by Bloomberg Television anchor David Ingles, a mainstay of the network's Chinese market coverage.
The thesis was simple enough. If Jerome Powell's resolve doesn't break, the Fed will likely get US rates to 5% and keep them close to that level for most of 2023, while in China, a pivot away from Xi's quixotic "COVID zero" strategy could come early next year, while
VIX has been moving strangely lately.
Market down and VIX down too.
Does the Fed have any direct ability to push the VIX around?
Who needs protection when you’re record overweight cash (a de facto short) and your beta to SPX is basically 0%ile?
If China is indeed reopening energy may once again prove to be an inflationary nightmare.
I had the impression they were swimming in oil from Russia. I thought their biggest problem was Covid, not energy.
I believe the Chinese have revealed their government as a totalitarian entity. I also believe there will be a Chinese pivot, which Xi will relish. But I don’t believe the Chinese economy will be rewarded for its crude form of governance in the long term.
I can’t believe they are experiencing thousands of Covid cases per day. Aren’t they buying proven medicines to address the outbreaks? Why don’t they just buy western medicines to solve the problem? I don’t get it.
That’s what I mean by reopen, end/phase out covid 0