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China Beige Book: "Pervasive weakness" in the economy

It's not a closely followed report but it's definitely headline-grabbing

CBB International, a New-York-based research group, puts out a private survey called the China Beige Book and it says conditions deteriorated across the board in Q4.

National sales revenue, volumes, output, prices, profits, hiring, borrowing, and capital expenditure were all weaker than the prior three months. Manufacturing and the service sector performed poorly.

Analysts at the company wrote that the fall in profits was particularly disturbing and showed "pervasive weakness"

The PBOC is the central bank to watch once today's BOJ decision is out of the way ( preview here ). The Shanghai Securities News reported earlier this month that the reserve requirement ratio is expected to be cut by 50 basis points in this month.

Companies come up with all kinds of excuses when earnings miss estimates. In the upcoming earnings season I expect to hear a multitude of CFOs blame the weak dollar for soft earnings.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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