China

China

"Yes, The System Is Rigged"

This longest of election cycles has rightly been called the Year of the Outsider. It was a year that saw a mighty surge of economic populism and patriotism, a year when a 74-year-old Socialist senator set primaries ablaze with mammoth crowds that dwarfed those of Hillary Clinton. It was the year that a non-politician, Donald Trump, swept Republican primaries... But if it ends with a Clintonite restoration and a ratification of the same old Beltway policies, would that not suggest there is something fraudulent about American democracy, something rotten in the state?

China Bond Yields Drop To Decade Lows As Economy Sinks After New Loan Creation Tumbles

Following an unprecedented credit expansion by China, which in the first few months of 2016 injected well over a trillion dollars in total credit, the payback - as previewed here - is coming. As reported earlier, overnight China reported that a swath economic activity, from factory output to investment and retail sales, slowed last month, reflecting renewed weakness in China’s economy, resulting in10Y bond yields dropping to near all time lows.

Frontrunning: August 12

  • Stocks Hit New Highs, and That Could Be Just the Start (WSJ)
  • China Slows as Stimulus Impact Wanes (WSJ)
  • How the China Shock, Deep and Swift, Spurred the Rise of Trump (WSJ)
  • Italian Economy Unexpectedly Stagnates in Threat to Renzi (BBG)
  • Clinton disparages Trump's economic plan, vows to help workers (Reuters)

Futures Rise, Global Stocks Flat After Ugly Chinese Economic Data

One day after all three US indexes hit record highs for the first time since December 31, 1999, US equity index futures, European stocks and Asian equities are little changed after the Nikkei jumped on the back of a Yen weakness, while China reported disappointing economic data and the PBOC suggested that the flood of new debt is slowing which pushed Chinese stocks higher by 1.6% on hopes of more stimulus.

One Simple Reason Why Gold Can Still Jump 50%

Stocks are very expensive. Bonds are insane. Bank rates are negative for many large investors. These trends are pretty clear - there will likely be more debt, more money printing, more capital controls, and more monetary insanity in the future...And if you understand them, the case for owning at least a small amount of gold is obvious.

Why Donald Trump's "Sound Money" Stance Scares The Mainstream

The notion that something good might come out of a Trump policy elicits guffaws in certain economic circles. However, by insisting that the U.S. Treasury label China a “currency manipulator” and by promoting trade that is both free and “fair,” Mr. Trump may be laying the groundwork for a significant breakthrough in international monetary relations - one that could ultimately validate the rationale for an open global marketplace and restore genuine free trade as a vital component of economic growth.

Erdogan Threatens To Abandon US Dollar In Trade With Russia

According to Turkey's Gunes newspaper, which said that as part of the discussion between Putin and Erdogan on Tuesday, the Turkish president suggested to abandon the US dollar in bilateral trade between Turkey and Russia, and instead to transact directly in lira and rubles.

Citi Lays Out The "Black Swans" That Donald Trump Would Unleash If He Becomes President

With less than 90 days left until the presidential election, Citi's Dana Paterson writes that the "election risks clock starts now." Here is how Citi previews the upcoming US election which "may generate extremely high uncertainty that likely will impose a significant drag on economic growth", and Citi's breakdown of Black Swans, mostly associated with a Trump presidency.

Import Prices Dip For 24 Consecutive Months As China Exports Most Deflation In 6 Years

Following May's 1.4% MoM spike - the highest since 2011 on the back of rising energy prices - June's import prices rose an upward revised 0.6% MoM, while moments ago we learned courtesy of the BLS that in July import prices barely stayed positive, rising just 0.1% sequentially, and down 3.7% compared to last July. This is the 24rd month in a row of year-over-year import price declines with China's exported deflation at 2010 lows.

At Least 21 Killed After Massive Explosion At Chinese Cehmical Plant

Almost exactly one year after China's port city of Tianjin was rocked by a massive explosion on August 12 that resulted in hundreds of casualties, and left parts of the town looking like a "warzone", moments ago China's CCTV reported that at least 21 people have been killed and 5 wounded in a blast at a plant in Dangyang, located in central China, according to state broadcaster CCTV.