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
China's Inflation Rate Eases to Zero
Deflation in China? China's Consumer Price Index (CPI) year-on-year growth rate in June dropped to 0% (prev. 0.2%). Producer Price Index (PPI) year-on-year growth rate dropped to -5.4% (prev. -4.6%). Source: Bloomberg
Goldman joins Wall St banks in cutting China’s growth outlook as post-Covid bounce fades.
Goldman Sachs cut its 2023 GDP forecast from 6% to 5.4%, citing a slew of macroeconomic issues. Latest Goldman revision follows likes of UBS, BofA, JPMorgan, & Nomura. Source: HolgerZ, Bloomberg
China's central bank cuts the banks' 1-Y and 5-Y Loan Prime Rate #LPR by 10 bps for the first time since August
The People’s Bank of China cut two more key lending rates on Tuesday for the first time in 10 months to prop up growth in the world’s second largest economy. The Chinese central bank cut the one-year loan prime rate by 10 basis points from 3.65% to 3.55%, and trimmed the five-year loan prime rate by 10 basis points from 4.3% to 4.2% — for the first time since August. Source: CNBC
China traders are leveraging up the most on record fluch cash
A gauge of leveraged activity in China’s
money market has notched another record as onshore financial
institutions take advantage of ample liquidity to boost
borrowing.
Turnover of so-called overnight pledged repo trades surged
to an all-time high 7.9 trillion yuan ($1.1 billion) on Tuesday.
An increase in volume may be indicative of banks using cheap
funding costs to buy bonds, even if the transactions also
include the day-to-day financing needs of firms in the market.
Source: Bloomberg
