A big concern for the global economy.
A 10%+ annual contraction in both exports and imports tells us the world is no longer buying from China and that inevitably that's slowing down domestic consumption.
And this results in deflation.
The property development sector is plunging again
China’s trade plunges more than forecast [AFR]
China property giant Country Garden warns of up to $7.6bn loss
US Credit / Debt Issuance
Following the Fitch US Govt Credit Rating downgrade and the announcement of nearly US2T of issuance due before the end of the year, there's a growing concern that a new financial crisis is brewing. The biggest 2 bank insolvencies happened this year. Authorities are super good at kicking the can down the road, but it's always markets that bring back reality.
Moody's cuts outlook on US banks amid rising financial strains [investing.com]
The chart of truth: the bellwether 10 Year US Govt Bond Yield.
A 30+ year trend well and truely broken.
Global economy
With Germany in recession and deflation in China, global growth is now one of the main concern for markets, not inflation.
With inverted yield curves abounding and inflation seemingly under control globally, although too high, the focus is now on the damage caused by all the rate hikes.
Benign US CPI
USD higher despite CPI
USD / JPY pushing BOJ, MOF for action
White House unveils ban on US investment in Chinese tech sectors [FT]
Loan losses at US banks hit $19bn as borrowers feel rate rise pain [FT]
The rise of windfall taxes on banks across Europe [FT]
WeWork warns of ‘substantial doubt’ over future as going concern [FT]
China Buys 23 Tons Of Gold In 9th Straight Month Of Purchases, Total Rises To Record 2,137 Tons [Zerohedge]
China Bans Negative Economic Commentary, Mentions Of "Deflation" [Zerohedge]
Fears many Aussie businesses could collapse as ATO pursues legacy debts [news.com.au]
One in 10 retailers, builders and cafes could go bust [AFR]
Australian dollar take a hit with stronger USD, weak iron ore prices and a collapsing Chinese economy.
Phil Lowe in parliament [9 News] for the final time.