Market Realist • 55 minutes ago China’s Slowdown Could Be More Severe than Expected (Continued from Prior Part) ## Are China’s problems more structural in nature? As we’ve seen previously in this series, Chinese authorities have initiated a number of measures to arrest the apparent slowdown in the economy. Most of the market participants, however, are of the view that China can’t engineer a sustained rise in the economy with policy tweaks. Nov 27, 2013 - ClearHeaders(); Response.Buffer = true; Response.ContentType = 'application/octet-stream'; Response.AppendHeader('Content-Disposition'. Application Octet Stream FirefoxThe country tried a number of these policy stimuli in 2018, but they weren’t able to stabilize the economy is any significant manner. The issues with the economy now are more structural in nature. ## Structural issues such as cost competitiveness According to ANZ Research, China’s slowdown is structural. It says, “China’s labor force continues to contract, and the trend seems irreversible.” As we highlighted in Citigroup: Trade War Damage in China Is Already Done, Citigroup economists think that the damage to the Chinese economy is already done. Citi (C) argues that the tariff war led to increased labor costs in China (FXI). The job market is under pressure. C# Application/octet-streamEconomists estimate that the ongoing trade war could cut China’s export growth by almost half in 2019, which would put ~4.4 million jobs at risk. Citigroup economists also stated that China is losing its cost competitiveness, especially in labor-intensive sectors. ## Deflation is a bigger concern Instead of inflation, deflation is turning out to be a bigger concern in China as consumer demand is weakening. China Beige Book’s managing director said, “Consumer demand has weakened, and you see that reflected in retail and services prices.” This deflation is now becoming more apparent, and the latest batch of soft inflation data has fueled concerns about a structural slowdown. As far as trade war is concerned, it is even in the interest of the US (QQQ) (SPY) to resolve it, as many US companies including Amazon (AMZN), Walmart (WMT), and Alphabet (GOOG) have also been opposing the tariffs due to the negative impact on their financials and outlooks. Browse this series on Market Realist: * Part 1 - China’s Slowing Inflation Renews Its Slowdown Concerns * Part 2 - Will China’s Latest Attempt at Propping Up Its Economy Work? * Part 3 - Analysts Expect These Measures from China to Arrest Slowdown •. Reuters • 2 hours ago Citigroup Inc (C.N) will give ValueAct Capital more access to its books and board of directors, signaling that the bank and the activist investing firm are deepening their relationship roughly a year after ValueAct first invested in Citi. The San Francisco-based hedge fund, one of the industry's most closely watched so-called activist investors, unveiled a $1.2 billion stake in New York-based Citi last May, and said it liked the bank's low risk and reliable revenue. Value Act currently owns about 1.3 percent of Citigroup's outstanding common stock and is one of its larger shareholders. Ore piya mp3. The Wall Street Journal • 3 hours ago Inc. Has agreed to give activist investor ValueAct Capital Partners LP greater insight into its strategy, governance and operations without giving it a board seat. The New York bank said Friday it has entered into an information-sharing and engagement agreement with ValueAct Capital, which will give the hedge fund access to confidential information and the ability to work directly with members of Citi’s management team and board.
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