China Becomes Concerned about “Quasi-Stagflation” as Developers Face Mounting Troubles
According to Bloomberg, Liu Shijin, an adviser to the People’s Bank of China, the country’s economy may face a period of “quasi-stagflation” with relatively slow growth and excessively high producer-price inflation.
According to Bloomberg, Liu Shijin, an adviser to the People’s Bank of China, the country’s economy may face a period of “quasi-stagflation” with relatively slow growth and excessively high producer-price inflation. Such a possibility needs close attention as once it happens, it will last into next year, he said.
Such a scenario is “very likely” if demand remains weak, producer prices stay high, corporate profits are squeezed, and existing risks in the economy are “released too quickly,” he told an online forum, the China Macroeconomy Forum, Sunday.
Meanwhile, the country’s developers remain under pressure, with Evergrande (EGRNF) – the largest and most well-known of them – keeps missing more bond coupon payments. Several other developers (including Kaisa (KKPFF) and Fantasia) have now missed payments as well and are warning about their ability to meet future ones.
Black Friday’s and Cyber Monday’s Combined Retail Sales Didn’t Live Up to Investors’ Expectations
U.S. Cyber Monday sales were flat, as online retailers offered fewer discounts because of limited inventory and more shoppers returned to stores for purchases.
Indian Economy Sees New Crucial Threats from Omicron Variant
UBS said “New flare-ups of Covid infections [both ongoing and yet coming] in India, and particularly the emergence of new Covid strains against which currently available vaccinations provide little or no protection are probably the biggest downside risk,”.
U.S. Foreign Trade Deficit Trimmed in October but Remains Historically Elevated
According to the U.S. Department of Commerce, in seasonally adjusted terms, the U.S. foreign trade deficit slowed down to a monthly pace of 14.6% to reach a still-alarming $82.9 billion.
