{"id":48518,"date":"2014-03-14T05:29:56","date_gmt":"2014-03-14T09:29:56","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=48518"},"modified":"2014-03-14T05:29:57","modified_gmt":"2014-03-14T09:29:57","slug":"chinas-premier-cuts-off-his-own-head","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2014\/03\/14\/chinas-premier-cuts-off-his-own-head\/","title":{"rendered":"China\u2019s Premier Cuts Off His Own Head"},"content":{"rendered":"

By WallStreetDaily.com<\/u><\/a> \"China's<\/p>\n

Words mean little on Fridays in the Wall Street Daily Nation<\/em>.<\/p>\n

Instead, we let pretty pictures do most of the talking for us. Each week, I select a handful of graphics to put important economic and investing news into perspective for you.<\/p>\n

So I’ll try to shut up now…<\/p>\n

Confirmed: China is Crumbling<\/b><\/p>\n

That didn’t take long. Hours after I issued a warning about slowing economic growth in China<\/a>, officials and <\/em>new data validated it.<\/p>\n

Speaking at a news conference on the final day of China’s yearly parliament, Premier Li Keqiang warned that the economy faces “severe challenges” in 2014.<\/p>\n

Shortly after, three economic data releases provided proof of a slowdown in the world’s third-largest economy.<\/p>\n

Fixed-asset investment, industrial production and retail sales figures all dropped in February compared to January.<\/p>\n

\u00a0\"\"<\/p>\n

Coincidental timing? I think not. Sounds more like an attempt to soften the blow ahead of the weak data. Especially since analysts expected all three economic measures to be in line with – or slightly above – January’s levels.<\/p>\n

Either way, the implication is clear: “A storm is coming,” as Gao Yuan, an analyst at Haitong Securities in Shanghai, put it.<\/p>\n

Indeed! Get out before it’s too late.<\/p>\n

Speaking of warnings…<\/p>\n

Retail Thaw?<\/b><\/p>\n

Earlier in the week, I told you to keep an eye out for Thursday’s retail sales report<\/a>.<\/p>\n

The blame-it-all-on-the-weather crowd needed sales to rebound to validate their existence. Color me surprised, because, well… they got it.<\/p>\n

Headline sales increased 0.3% in February versus expectations of 0.2%.<\/p>\n

However, the previous two months’ figures were revised downward significantly. So consumer consumption remains suppressed.<\/p>\n

As we know, everyday Americans aren’t the only ones pinching pennies. So are businesses. Capital expenditure levels remain depressed, as well.<\/p>\n

At some point, though, companies need to replace aging equipment, which promises to provide a bullish economic force. And we may be at that point now.<\/p>\n

\u00a0\"\"<\/p>\n

As Gluskin Sheff’s David Rosenberg reveals, when manufacturing capacity breaches 77%, which it just did, a “moderate capex growth cycle” follows.<\/p>\n

Based on his estimates, it could be enough to boost GDP growth by 60 basis points.<\/p>\n

Although that might not sound like a lot, it would represent a 23% improvement to current forecasts for U.S. GDP growth in 2014.<\/p>\n

Clearly, this is a trend worth following. Closely.<\/p>\n

A capital expenditure boom could lead to a profit boost for the companies on the receiving end of the spending. Needless to say, investors in those companies stand to benefit, too.<\/p>\n

Rest assured, we’ll be hunting down specific opportunities as this situation unfolds.<\/p>\n

Choose Wisely<\/b><\/p>\n

March madness is about to get underway.<\/p>\n

Here are some fun stats to keep in mind as you try to construct the perfect<\/em> NCAA Tournament bracket for your office pool.<\/p>\n

Newsflash: It ain’t going to happen. Unless you believe you’re the lucky 1 in 9,223,372,036,854,775,808 people.<\/p>\n

\"\"
\nGood luck trying, though.<\/p>\n

That’s it for this week. Before you go, though, let us know what you think of this weekly column – or any of our recent work at Wall Street Daily<\/em> – by going here<\/a>.<\/p>\n

Ahead of the tape,<\/p>\n

Louis Basenese<\/p>\n

The post China’s Premier Cuts Off His Own Head<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

Article By WallStreetDaily.com<\/u><\/a><\/p>\n

Original Article: China\u2019s Premier Cuts Off His Own Head<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com Words mean little on Fridays in the Wall Street Daily Nation. Instead, we let pretty pictures do most of the talking for us. Each week, I select a handful of graphics to put important economic and investing news into perspective for you. So I’ll try to shut up now… Confirmed: China is Crumbling … <\/p>\n

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