Archive for May, 2012File not found. People’s Bank of China cuts reserve requirement ratio by 50bps after ugly data
The People’s Bank of China just announced that the reserve requirement ratio will be reduced by 50 basis points.The worst is NOT over for the China’s economy
Given just how bad all the latest Chinese data look like, monetary easing appears to be increasingly likely in the near-term.China Monetary Statistics for April 2012
M2 Money supply growth is down to 12.8% yoy, and new loans were down to just RMB681.8 billion, way below market consensus.China retail sales has also missed estimates in April
Retail sales growth slowed from 15.2% in March to 14.1% in April, also missing market expectation.China fixed asset investment weakens, real estate investment shows dramatic slowdown
FAI growth for the year to April slows to 20.2% yoy, while real estate investment growth fall below 20% yoy for the first time since late 2009.China Industrial Production missed estimates, power output growth collapsed
Industrial production grew 9.3% in April, missing estimates. Power output growth, a good gague of economic growth, collapsed.Chart: Who is funding the US budget deficit
Here is a chart from a recent brillian presentation from Deutsche Bank’s Torsten Slok on who funds the US government deficit.The CRB commodity index is more or less a stress indicator
The CRB commodity index will be the key indicator to watch for financial stress amid the seemingly escalating Euro crisis.China inflation slowed to 3.4% in April 2012
China consumer price inflation slowed to 3.4% yoy in April, in-line with market estimates, while producer price index fall by 0.7% yoy.The consensus has got the S&P 500 2013 EPS wrong, says Morgan Stanley
Morgan Stanley just invented a quantitative model which tells us that the market has been too optimistic about the 2013 EPS of the stock market.Bank of England MPC maintains interest rate and QE unchanged
The Bank of England maintains interest rate at 0.5% and the size of asset purchase programme at £325 billion.China’s sovereign wealth fund to stop buying European bonds
China Investment Corp has stopped buying European government debts according to Bloomberg.Willem Buiter: how about abolish currency COMPLETELY?
Willem Buiter of Citi suggests that to lower effective lower bound on nominal interest rates, one of the solutions is to abolish currency altogether.China reports very weak trade figures for April 2012
The latest set of trade figures from China appears disturbingly weak, suggesting weak external demand and equally weak (if not weaker) domestic demand.US government has made negative contribution to GDP growth for 6 quarters
The US government’s expenditure has actually made negative contribution to GDP growth for 6 consecutive quarters.Spain’s sovereign debt could be dragged down by its troubled banks
The Spanish government could be dragged down by its banks as the government is attempting to bailout Bankia.Some random Japanese analysts on China real estate market hard landing
With the experience of Japanese real estate bubble bursting, two analysts see hard landing for Chinese real estate market as a base case.
Economy. 9 May, 2012, 9:25Charts: Australian Economy
With some more number crunching and data digging, here are few more charts on the Australian economy.Citi: Probability of Greek’s Euro exit rises to more than 50%
After seeing the somewhat chaotic outcome of the Greek election, Citi now puts the probably of Greek exit at 50 – 75%.Is EURUSD repeating last year’s path?
EURUSD exchange rate again looks somewhat eerily reminiscent of last year. Today is probably early July 2011.