ZeroHedge, by Tyler Durden — March 3, 2020
Excerpt:
Over the weekend, China-watchers – or at least the ones who don’t really watch China all that closely and instead rely on others’ “hot takes” – were shocked to learn that in February both the Chinese manufacturing and non-manufacturing PMIs had crashed far below consensus expectations, tumbling to record low levels, surpassing even the economic contraction observed at the peak of the global financial crisis.
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And yet, judging by the market’s torrid surge on Monday, it appears that – as so often happens – traders took China’s latest numbers in stride, and specifically as an indication of Beijing “kitchen sinking” the collapse in February, with a V-shaped recovery sure to follow.
Or maybe not, because while not only has China’s economy not picked up even modestly, but it is only a matter of time before Beijing, which has forced people to go to work against their will, succumbs to a second wave of coronavirus infections, one which will result in an even worse economic slump than the current one, which incidentally has yet to show any actual recovery!
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