Hong-Kong listed Chinese stocks are soaring this morning as China July politburo statement is more dovish than expected.
China wows to adjust and optimitize property policy and aims to support domestic economy. Source: CNBC
Food for thought
Source: Michel A.Arouet
Japanese stocks have an earnings yield that is 612bps above the yield on 10-year Japanese government bonds
Put that in context; in the US, the gap is only 113bps. Little room for error in the US, plenty of room in Japan. This is a margin of safety concept. Source: Jeff Weniger
Fun fact is that Japanese inflation is now higher than that in the US for the first time since October 2015.
Source: Bloomberg, www.zerohedge.com
In China, the unemployment rate among young people ages 16 to 24 was 21.3% in June
A new record.
China reports Q2 GDP miss, fueling calls for more stimulus
China said Monday that 2nd quarter gross domestic product grew by 6.3% from a year ago, missing expectations (+7.3%). This marked a 0.8% pace of growth from the first quarter, slower than the 2.2% quarter-on-quarter pace recorded in the first three months of the year. The unemployment rate among young people ages 16 to 24 was 21.3% in June, a new record. Retail sales for June rose by 3.1%, a touch below the 3.2% expected. Industrial production for June rose by 4.4% from a year ago, better than the 2.7% forecast. So far, Beijing has shown reluctance to embark on greater stimulus, especially as local government debt has soared. A Politburo meeting expected later this month could provide more details on economic policy. Source: Bloomberg, CNBC
Chinese money trends are improving
M1 and M2 growth 3% and almost 2% on the month. Japan & China are the only places with positive money growth... Source: Andreas Steno Larsen
According to Goldman, India is poised to become the world’s second largest economy by 2075 behind China but ahead of the US
Source: CNBC
