Thursday , 21 November 2024

Economic Overviews

China’s Much Ballyhooed Attempt To Transition From A Manufacturing to Service Economy Means…

The Chinese government is [trying to]...transition the economy away from its reliance on manufacturing, which is shrinking, into a service economy [but is failing to accomplish this objective in spite of] a glorious debt-and-stimulus binge for the past few months. [Unfortunately,] these policies [may do nothing more than] add to the already insurmountable mountain of debt [of which] a good part is now going bad.

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Mexico’s Economy Showing Serious Signs Of Strain

Pemex, Mexico’s over-indebted, money-losing state-owned oil giant, appears to be in a state of terminal decline. To survive, it needs some last-minute reprieve or miracle...For the broader Mexican economy, Pemex’s woes are just part of the problem. With the overseas market for Pemex’s oil shrinking,...while the company’s production continues to crumble, Mexico will depend even more on its manufacturing sector but that too, is showing serious signs of strain.

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Record Low BDI Reflects Slowing Global Trade & Weak Commodity Prices

The global equities markets is not the only place where the China sell-off has had an effect. It has seeped into the global economy, slumping shipping and slowing global trade...[to the point where] the Baltic Dry Index is at an ALL TIME LOW. As the year progresses, it will be interesting to keep an eye on the BDI and track its movement - especially as it relates to China and commodity prices.

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