Having told the world that it will not be undertaking system-wide rate cuts or stimulus - focusing more on idiosyncratic safety nets - last night's data from China is likely to have the PBOC frowning. Fixed Asset Investment (lowest growth since Dec 2001) and Retail Sales (lowest growth since Feb 2006) missed expectations, but it was the re-slump in Industrial Production (after a small 'huge-credit-injection-driven' bounce in September) that is most worrisome as China's 2014 output is growing at its slowest since at least 2005. As Michael Pettis previously noted [7] "China will be no different... growth miracles have always been the relatively easy part; it is the subsequent adjustment that has been the tough part." Of course, this is not the 'soft-landing' so many bulls have expected, which, if enabled by moar credit, as Pettis warned "will inevitably lead to a very brutal hard landing."
China Fixed Asset Investment YoY Growth slumps to 13 year lows...
China Retail Sales YoY Growth at over 8 year lows...

And worst of all China's Industrial Output Year-To-Date is growing at its weakest in at least a decade...
Which is a problem... as just this week President Obama explained how US is anything but decoupled from China...
- *OBAMA SAYS IN U.S. INTEREST FOR CHINA TO BE STABLE, PROSPEROUS
- *U.S., CHINA HAVE ENORMOUS STAKE IN EACH OTHER'S SUCCESS: OBAMA
- *U.S. WELCOMES RISE OF PEACEFUL, PROSPEROUS CHINA: OBAMA
- *U.S. ENCOURAGES ALLIES TO FOSTER STRONG CHINA TIES: OBAMA
* * *
The decoupling... globally (China, Europe, and Japan all seeing GDP estinmates slashed)
How long before the lag catches up to US? Especially with Shale Oil Capex collapsing?



