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China PMI Plunges Most In 28 Months, Reverts To HSBC's Reality

Tyler Durden's picture


Color us not stunned at all. China's Manufacturing PMI finally reverted to the reality that HSBC's Manufacturing PMI has been arguing for and fell for the first time in six months. The drop is the largest since February 2010. While still above 50 (though the lowest level of expansion in five months), or 50.4 technically, down from 53.4, and missing expectations of 52.0, it seems another engine of global growth just sputtered finally - as the real impact of a European depression and fiscally challenged US hit home.

And as a reminder, here is why unless "Europe is fixed" and quite soon, the situation will first get worse before it gets much worse:


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Thu, 05/31/2012 - 21:17 | 2482007 vmromk
vmromk's picture

Nothing that a SCUMBAG with an active printing press couldn't fix.

How's that wealth effect working out for you Bernank ?

Going exactly as planned ?

It's gonna be a hoot to see which medical institution would hire your kid after his father will be the one who brings down the entire financial system, hahaha you fucking DOUCHEBAG Bernanke.


Thu, 05/31/2012 - 21:40 | 2482060 hedgeless_horseman
hedgeless_horseman's picture



See, even the Chinese government economists want QE3!  It is so nice to see the whole world work together on something.  I just wish it wasn't monetary debasement.


ZH office pool...How big will QE3 be?  

Thu, 05/31/2012 - 21:41 | 2482098 vast-dom
vast-dom's picture


Thu, 05/31/2012 - 21:47 | 2482115 hedgeless_horseman
hedgeless_horseman's picture



Vast-dom says QE3 will be as big as his douche.  Anyone want to try and quantify that?

Thu, 05/31/2012 - 22:33 | 2482266 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

China is on QE7, QE8, and QEn already. I am sure it smells like a douche.

Thu, 05/31/2012 - 22:42 | 2482300 casey13
casey13's picture

The whole point of fiat currency is so you can create more easily. Witout that we might as well still be on the gold standard.

They will use it when they get the commodities down a little more so they start moving back up from a lower base.

Thu, 05/31/2012 - 22:41 | 2482294 Dr. Engali
Dr. Engali's picture

To be fair Vast is off his meds. But if I were to try and quantify an amount for a douche I would say 4 trillion. That is one trillion for each of the four major fed douche bag chair people.

Thu, 05/31/2012 - 21:19 | 2482011 Cult_of_Reason
Cult_of_Reason's picture

Who's gonna save the world now?

We're screwed.

New rumor: IMF to bailout China.

Thu, 05/31/2012 - 21:20 | 2482022 fightthepower
fightthepower's picture

Your mom.

Thu, 05/31/2012 - 21:24 | 2482042 Cult_of_Reason
Cult_of_Reason's picture

Mommy has no money to bailout the world.

Thu, 05/31/2012 - 21:34 | 2482071 BandGap
BandGap's picture

But she can make $86 an hour working from her home!

Thu, 05/31/2012 - 22:32 | 2482265 Cult_of_Reason
Cult_of_Reason's picture

New rumor: DeShawn Stevenson to bailout China (he has an ATM machine in his kitchen)

NBA star DeShawn Stevenson installs cash machine in his kitchen

Thu, 05/31/2012 - 23:04 | 2482375 otto skorzeny
otto skorzeny's picture

that's so all his homies can pay for all the white strippers they bring back to his house to bang

Fri, 06/01/2012 - 00:15 | 2482511 Cult_of_Reason
Cult_of_Reason's picture

He also has a pay toilet in his house that goes for $5 a pop.

Fri, 06/01/2012 - 04:15 | 2482755 The Real Fake E...
The Real Fake Economy's picture

a pop or a poop?

Thu, 05/31/2012 - 22:04 | 2482178 Cult_of_Reason
Cult_of_Reason's picture

Every single component, except inventories, is lower m/m.

Thu, 05/31/2012 - 21:17 | 2482016 SilverTree
SilverTree's picture

Contraction bitchez!

Thu, 05/31/2012 - 21:20 | 2482023 junkyardjack
junkyardjack's picture

We're going to need an epidural

Thu, 05/31/2012 - 21:31 | 2482062 SilverTree
SilverTree's picture


Thu, 05/31/2012 - 22:34 | 2482268 Arnold Ziffel
Arnold Ziffel's picture
China - Real Estate Investment Plunged 70% in Q1 2012


BEIJING - Chinese shares tumbled Wednesday after Premier Wen Jiabao said China will not halt its efforts to reign in housing prices.

The current housing prices are still far from falling back to a reasonable level, Wen said at a press conference after the conclusion of China's annual parliamentary session.



Fri, 06/01/2012 - 00:45 | 2482559 robertocarlos
robertocarlos's picture

OMG! Do you think he would be willing to be the PM of Canada?

Thu, 05/31/2012 - 21:17 | 2482017 larry david
larry david's picture

fuck you jamie dimon, fucking punk

Thu, 05/31/2012 - 21:34 | 2482070 LetThemEatRand
LetThemEatRand's picture

And fuck Lloyd Blankfein.  That fucking fuck.

Thu, 05/31/2012 - 21:19 | 2482018 junkyardjack
junkyardjack's picture

Who could have seen this coming. Feels like only this afternoon the S&P ripped up 20 points on the fact that the world was saved, now this just comes out of left field....

Thu, 05/31/2012 - 21:27 | 2482053 flying dutchmen
flying dutchmen's picture

that was just the end of month mark up...


Thu, 05/31/2012 - 22:45 | 2482313 Ropingdown
Ropingdown's picture

So?  A guy's still got to make a living.  Meaning "What if the end doesn't come?"  

Thu, 05/31/2012 - 21:21 | 2482024 adr
adr's picture

Sorry I'm too busy to care about China while looking out for black helicopters after I realized that an e-mail to my Target buyer sent last year about how we had to recall our Japanese product after suppliers issued cancellations stemming from the earthquake and tsunami probably put me on a watch list.


Thu, 05/31/2012 - 21:22 | 2482029 veyron
veyron's picture

Rumor: apple to buy a few European countries, pensions paid in iPads.

Thu, 05/31/2012 - 21:46 | 2482120 LetThemEatRand
LetThemEatRand's picture

Rumor:  someone ate Jobs' face just before the End.  He shall be returning soon.  New OS = Zombie.

Fri, 06/01/2012 - 00:54 | 2482575 adr
adr's picture

actually Apple should have cremated Jobs and sold an ash for $100 a piece to all the Apple faithful so to carry around a part of their lord and savior.

Thu, 05/31/2012 - 21:22 | 2482031 Ineverslice
Ineverslice's picture

Ausie-Ausie-Ausie....Oy vey.  Gulp.

Thu, 05/31/2012 - 21:40 | 2482089 chump666
chump666's picture

Watching the ASX200 bounce of it's "support" and the AUD.  Looks like intervention.

Food gates of hell will be unleashed on the Australian and Canadian markets soon.  They're Keynesian mad government are running hot with the RMBS trade, desperately trying to keep their housing markets bid.


Thu, 05/31/2012 - 22:09 | 2482198 disabledvet
disabledvet's picture


Thu, 05/31/2012 - 22:43 | 2482301 chump666
chump666's picture

looks like the PPT on a HFT smoke out, very obvious.  As for FX Asia is riddled with inflation so they are flipping on the USD strength, looks like CB bids.

All and all, major shorts will pile up on Australia soon.  Their bonds being bid is ludicrous when they have a housing bubble to end all housing bubbles.

Thu, 05/31/2012 - 22:46 | 2482310 chump666
chump666's picture

also the trades will be cut at end session. so any retailers or smart money will be fleeced.

asian sovereigns are buying shares.


Thu, 05/31/2012 - 21:23 | 2482034 IMA5U
IMA5U's picture

Don't worry


QE10 will save us

Thu, 05/31/2012 - 21:24 | 2482038 Conman
Conman's picture

Why are Asian markets dropping on this news? In the good ol' USA we treat bad economic news as bullish for stocks. silly asians.

Thu, 05/31/2012 - 21:36 | 2482078 carefreemanjoe
carefreemanjoe's picture

Because here in the US the so called pundits and cheerleaders will start saying "it is already baked in", "it is already accounted for in the current market"  or something to that effect.

Thu, 05/31/2012 - 21:43 | 2482104 Conman
Conman's picture

Nah, I think it is because the thought of Hello Kitty going bankrupt is very terrifying to them.

Thu, 05/31/2012 - 22:11 | 2482202 disabledvet
disabledvet's picture

how can i imagine something failing when i can't even understand how it works to begin with?

Thu, 05/31/2012 - 23:01 | 2482363 Conman
Conman's picture

Lol i spoke too soon. Asia's turning American-nese. Indicies marching green. HSI and Shanghai green, Incredible!

Thu, 05/31/2012 - 21:26 | 2482052 reader2010
reader2010's picture

Party bosses will roll out internal personal consumption of legal prostitution soon. 

Thu, 05/31/2012 - 22:07 | 2482057 DormRoom
DormRoom's picture

Too much debt diverted to unproductive enterprises throughout the world.  The system needs to be cleansed. But the crony capitalists control the system, and will never allow for the proper correction. 


My generation is f)cked.  The baby boomers get to die off just before the financialpocalyse--which they built-- collapses all societies.

Thu, 05/31/2012 - 21:29 | 2482059 Conman
Conman's picture

In other news Kyle Bass says Yipeee.

Thu, 05/31/2012 - 21:37 | 2482081 otto skorzeny
otto skorzeny's picture

JGBS time? Hugh Hendry has been shorting alot of Jap. companies that do most of their biz w/ Red China-steel maunufacturers I think he said

Thu, 05/31/2012 - 21:33 | 2482069 CreativeDestructor
CreativeDestructor's picture

Mars is the new bail out-or and earth bail out-ee

Thu, 05/31/2012 - 21:35 | 2482075 rfaze
rfaze's picture

I picked the wrong day to quit sniffing glue........

Thu, 05/31/2012 - 21:40 | 2482090 otto skorzeny
otto skorzeny's picture

i love how the blowhards on CNBC say that USA is decoupled from rest of world while not too long ago pontificating on how all world economy is so interconnected

Thu, 05/31/2012 - 21:43 | 2482103 carefreemanjoe
carefreemanjoe's picture

Do you think they really know what is going on around them. They just go with the flavor of the season. When Facebook IPO was cool they were cheering it like FB is this great new Quarterback and now they act as if they always knew the QB was a lemon.

Thu, 05/31/2012 - 21:55 | 2482139 otto skorzeny
otto skorzeny's picture

I watch it more for comedy and to see Santelli froth at the mouth over state and muni debt-oh-and that smokin' hot amanda something

Thu, 05/31/2012 - 22:15 | 2482215 BeetleBailey
BeetleBailey's picture

Feel good fodder for the sheeple.....cnbc sells ads ...only reason it's on...ain't no "publice service" station...

They would do better (and make more revenue/add to their margin of profit) if they went "Muzac" and fired all the talking heads and became a data only feed with commercials.....scroll stories.....had deadpan readers......

..but that not would "sell" the sheeple into watching...only us guys and gals.....

the doofuses that are there lead the sheeple into and out of commercials....

"stay tuned ...right after this.....Douche Baggia tells you about Facebook and why it's here to stay..,..."


Thu, 05/31/2012 - 21:42 | 2482100 ozziindaus
ozziindaus's picture

Someone please tell this fucking guy. If you're patient enough to sit through the entire 2 hour presentation, you'll be pleased to discover a "free" gift at the end

Thu, 05/31/2012 - 21:52 | 2482134 RobotTrader
RobotTrader's picture

US Paper going parabolic in Asian trading

Thu, 05/31/2012 - 21:58 | 2482148 hedgeless_horseman
hedgeless_horseman's picture



Return of the Night Crawler?

PS: Nice to see you back.

Thu, 05/31/2012 - 22:02 | 2482168 Pancho Villa
Pancho Villa's picture

As of today, EUFN is -7.2% YTD, vs. +4.19% for S&P 500.

European financials have a lot of catching up to do if they are going to be the highest performing sector of 2012.

Fri, 06/01/2012 - 02:02 | 2482650 CvlDobd
CvlDobd's picture

I think he called for financial to be tops in Q1 12 only. Not a terrible call but I may be mis-remembering.

Thu, 05/31/2012 - 22:03 | 2482172 ozziindaus
ozziindaus's picture

AUD taking a big shit. Target AUD = 0.5 USD within 12 months.

Thu, 05/31/2012 - 22:03 | 2482176 Everybodys All ...
Everybodys All American's picture

for all the wrong reasons. Can you find a bigger bubble than US debt? Some day soon you will be paying them to hold your money. Simply insane. Thank your boy Bernanke.

Thu, 05/31/2012 - 22:54 | 2482342 Ropingdown
Ropingdown's picture

I think the $ will have strength for many months.  It isn't about having low debt.  It's about producing enough food, energy sufficient for 50% of commutes, and 11 or 12 carrier battle groups.  The underlying in this country is actually very good compared to the other majors.  True we have a lot of useless mouths to feed, but then we've got all that stockpiled cheese and non-fat powdered milk, so that's not a big deal.

Thu, 05/31/2012 - 23:03 | 2482371 Rob Jones
Rob Jones's picture

Hurry! Hurry! Hurry! Buy your berths on the Titanic before they are all sold out.

Thu, 05/31/2012 - 22:05 | 2482183 nmewn
nmewn's picture

Did you take May off RT?

Thu, 05/31/2012 - 22:33 | 2482267 Dr. Engali
Dr. Engali's picture

Tyler put him In the time out chair.

Thu, 05/31/2012 - 22:51 | 2482334 alex_g
alex_g's picture

"Did you take May off RT?"


lost internet in his mom's basement

Thu, 05/31/2012 - 23:06 | 2482383 otto skorzeny
otto skorzeny's picture

where is your fellow sodomite trav777?

Thu, 05/31/2012 - 21:55 | 2482142 nmewn
nmewn's picture

According to Dr.Who Li Most...this is all well within the margin of error.

Demolish a few brand new worker shelters...errr, ahhh, vacant condos...ramp up concrete and rebar production and we back in bidness.

Push/pull ez capitalist

Thu, 05/31/2012 - 22:02 | 2482170 chump666
chump666's picture


Brazil Q1 GDP due tonight, forecast of 1.3% y/y [ID:nL1E8GP8WG]
GDP growth was +7% in 2010
USD/INR & USD/BRL 30-day correlation running at very tight 0.87
Brazil numbers may be a near-term nail in the coffin of the BRIC story

Thu, 05/31/2012 - 22:05 | 2482185 zerotohero
zerotohero's picture

Tomorrow is Friday - thats when I officially say - FUCK THIS SHIT ITS FRIDAY.

Thu, 05/31/2012 - 22:06 | 2482187 Kina
Kina's picture

So what of Australian banks I wonder....?


Earlier this year an IMF working paper looked at the Australian majors through a novel lens, asking what would happen if the Irish experience of an unemployment rate of 13.6 per cent and a near halving of house prices from their pre-crisis peaks were to occur here. They concluded that the majors’ tier one capital ratios would fall by only 1.5 percentage points and remain above the regulatory minimum.


During the last global crisis the Australian govt posted guarantees for the major banks. I guess they could again if need be. Or post 50 tons gold collateral to the guarantees if they were ever needed.

Don't know much at all about the financial health of the Aussie banks and the riske the face of an Irish style housing melt down and unemployment, though the IMF test above seems to think they would be ok.

Thu, 05/31/2012 - 22:11 | 2482206 Tsar Pointless
Tsar Pointless's picture

Should I panic now?

This cements it for me - "bullish" is the secret word for tomorrow.

Thu, 05/31/2012 - 23:02 | 2482370 Joshua_D
Joshua_D's picture

Panicking is for the womyns.

Thu, 05/31/2012 - 22:13 | 2482218 papaswamp
papaswamp's picture



Thu, 05/31/2012 - 22:54 | 2482343 JohnKozac
JohnKozac's picture


US slaps taxes on wind towers from China


The United States announced preliminary duties from 13.74 percent to 26 percent on Wednesday against wind-turbine towers imported from China, a move that will heighten tension over trade of clean-energy technologies between the economic powers.

Thu, 05/31/2012 - 23:13 | 2482400 otto skorzeny
otto skorzeny's picture

we should erect a wind tower in every environmentalist's and politician's back yard and see how popular they still are-fucking eyesores all over the Great plains and midwest for 2% of 'nation's energy needs". the massive amount of energy used to produce,ship,install and maintain them means they'll take hundreds of years to recoup their cost. and now they want to put them in the great lakes. I see 1st Solar is about to go tits up.

Thu, 05/31/2012 - 23:25 | 2482430 FieldingMellish
FieldingMellish's picture

Sell some Treasuries and buy iPads. Sorted.

Fri, 06/01/2012 - 00:42 | 2482519 slewie the pi-rat
slewie the pi-rat's picture


i made up a new joke about chine

  • student:  what is greater than thePeople?
  • teacher:  theParty
  • what is the pural of abacus?
  • abracadabracus
Fri, 06/01/2012 - 01:34 | 2482628 Hulk
Hulk's picture

Slewie, sometimes I wonder just what it is the fuck you do in the real world...

Carry on Sir !!!

Fri, 06/01/2012 - 00:26 | 2482524 realtick
realtick's picture

I'm starting a campaign to convince Tyler to publish his charts without elementary school bubbles and arrows on them.

                       Who's with me?

Fri, 06/01/2012 - 00:36 | 2482542 slewie the pi-rat
slewie the pi-rat's picture

tyler is the fuking publisher, dude; he IS: chartPornTM

no one in his right mind would come near this seditious bullshit, especially after the first try a few daze age about the red arrow pointing down

nice try, tho

ps:  a word to the wiZe is _ _ _ _ _ _ _ _ _ _

Fri, 06/01/2012 - 00:32 | 2482538 q99x2
q99x2's picture

Awh they'll say anything to drain a central banker. What if the central banks just decide to own every bank and write all the debts off into the land of zeros. I'm sure its going to be ok. Just a little perspective adjustment. Which for me includes getting the rice in now that I have my medical supply inventory up to snuff.

Fri, 06/01/2012 - 01:02 | 2482583 adr
adr's picture

WTF futures were down 55 points at 11pm and now they are down 27. If Facefuck goes up 10% tomorrow everyone needs to thro in the towel.

Fri, 06/01/2012 - 01:40 | 2482631 chump666
chump666's picture

An occurrence called 'Keynesian Volatility'


Keynesian volatility is usually due to intervention by sovereign funds and government pension funds.  Mostly occurring out of Asia, but also know in Europe and American markets.  A futile attempt at supporting a soon-to-be bear market.  Ends up dragging in retail or dumb money and strip mines the poor suckers as brokerage firms sell on rallies.  Most likely will lead to greater losses of goverment sovereign funds and downgrades. 

Keynesian volatility can also been seen in: FX, Bonds, Futures, commodity prices, fixed income, CDS etc etc etc

Not to be confused with central bank volatility where those insane bankers print, Keynesian volatility is usually caused by taxpayer funds i.e taxes and other income stolen off the people.

Fri, 06/01/2012 - 05:42 | 2482822 GernB
GernB's picture

As someone else on Zero Hedge observed, being contrarian is the new contrarian indicator. So this will be interperted by the markets as bad which is good because it will mean more QE. This explains why the immediate reaction was for the China markets to go up.

Fri, 06/01/2012 - 08:17 | 2483115 cnhedge2
cnhedge2's picture

Q&A on the European Debt Redemption Fund

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