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China Cuts Rates Most Since 2020 Amid Disastrous Data
While previewing the release of key activity data for the Chinese economy, I not-so-gently suggested that if "things keep going the way they’re going" Xi might decide to "gradually pare the number of top-tier economic updates made available to market participants."
Fast forward a day and sure enough, China omitted the youth unemployment rate while disclosing a hodgepodge of critical figures, including retail sales, industrial output and fixed asset investment.
The jobless rate for China's yo
You’re going to get yourself on a list.
He’s already on several!
Remember when China was about to overtake the US as the world’s most powerful economy? I believe it was right after Russia was about to overtake us. Spin is a funny thing.
Looking forward to the puck’s future location, as it were, what will the CCP ultimately do about this?
Continue the current course (lower borrowing costs, ease business restrictions, mandate stimulus by local govts, restrict reported economic data, etc.?
Large-scale fiscal stimulus, perhaps even demand-side household-focused, at the cost of fiscal rectitude?
Fundamental economic reforms to increase household income and reduce government/SOE economic share?
Other?
Which Xi chooses has large investment implications, e.g. for commodities.
Sorry, I meant to finish with a question: What is your best guess?
Or a nice war to rally the populace.
Anyone hear that Kyle Bass interview at the Hudson Institute?
The Taiwanese elections in January will be “interesting”, to say the least. A large slide in the share of votes for the pro-independence party would complicate things for those who call for military action to defend TSMC.