A Nightmare in the Making?

Our attention turns towards the latest economic data from China. Yes, because it fits our fundamental story but also because the ramifications reach far and wide.

The low‐down: manufacturing in China shrunk by the largest margin ever ... EVER.

A Purchasing Mangers’ Index showed manufacturing contracted to 38.8 in November from 44.6 in October. A separate PMI showed a similarly dramatic plunge. Exports are plunging as developed economies enter recession and scale back noticeably on demand for China’s stuff.