Albert Edwards of Societe General on Chinese groeth.
The sharp fall in China’s Q3 GDP deflator has ‘massaged’ real GDP higher.
Before I put my own interpretation on recent Chinese data, I want to just quickly comment on the zombie situation. Regular readers will know that we have been tracking the vulnerability of US inc. to rising rates. We note that the large and mega-caps have (unusually) been major net beneficiaries of higher rates even though net interest payments have, as usual, risen sharply for the rest of the corporate sector – see link. We have been warning of the likelihood of a larger-than-normal wave of corporate bankruptcies in a recession.