On December 9, bondholders of China's state-owned Tewoo will have to decide if they will accept a "distressed exchange offer", triggering the biggest SOE default in China since 1998.
If one looks at true corporate profits stripped of all adjustments, revisions and addbacks, a very ugly picture emerges: one where US corporate profitability is the worst since the financial crisis.
A heavy equipment producer noted a slowdown in sales that they initially blamed on heavy rainfall this year, but said this "masks a much deeper contraction in capital equipment spending." Surely, an easy mistake to make.
While we have yet to see where Q4 GDP will come out, the fact that the Fed cut rates three times in a quarter in which the economy rose 2.1% will surely prompt questions of what happens when the US economy finally contracts?
So with China's Industrial Profits crashing by the most on record in October and US Durable Goods Orders rebounding aggressively, one might suggest 'Trump is winning' the trade war.
