Tag Archive: Retail sales

The Dollar-driven Cage Match: Xi vs Li in China With Nowhere Else To Go

2019-10-22

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2019-10-22

China Industrial Production, 1998-2019
China’s growing troubles go way back long before trade wars ever showed up. It was Euro$ #2 that set this course in motion, and then Euro$ #3 which proved the country’s helplessness. It proved it not just to anyone willing to honestly evaluate the situation, it also established the danger to one key faction of Chinese officials.

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Retail Sales’ Amazon Pick Up

2019-08-17

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2019-08-17

Retail Sales, NSA 2011-2019
The rules of interpretation that apply to the payroll reports also apply to other data series like retail sales. The monthly changes tend to be noisy. Even during the best of times there might be a month way off trend. On the other end, during the worst of times there will be the stray good month. What matters is the balance continuing in each direction – more of the good vs. more of the bad.

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Monthly Macro Monitor: We’re Not There Yet

2019-07-21

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2019-07-21

US High Yield Master 2000-2015
I first wrote about the current economic slowdown a year ago and Jeff Snider actually started seeing signs of slowdown in the Eurodollar market as early as May 2018. So, the slowdown we’re in now certainly isn’t a surprise here at Alhambra. I think though that we often forget how long these things take to develop.

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Globally Synchronized, After All

2019-07-20

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2019-07-20

Retail Sales (ex Autos), NSA 1993-2019
For there to be a second half rebound, there has to be some established baseline growth. Whatever might have happened, if it was due to “transitory” factors temporarily interrupting the economic track then once those dissipate the economy easily gets back on track because the track itself was never bothered.

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Dimmed Hopes In China Cars, Too

2019-06-15

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2019-06-15

China Total Car Sales, 2013-2019
As noted earlier this week, the world’s two big hopes for the global economy in the second half are pinned on the US labor market continuing to exert its purported strength and Chinese authorities stimulating out of every possible (monetary) opening. Incoming data, however, continues to point to the fallacies embedded within each.

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Global Doves Expire: Fed Pause Fizzles (US Retail Sales)

2019-05-18

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2019-05-18

Retail Sales, NSA 2010-2019
Before the stock market’s slide beginning in early October, for most people they heard the economy was booming, the labor market was unbelievably good, an inflationary breakout just over the horizon. Jay Powell did as much as anyone to foster this belief, chief caretaker to the narrative. He and his fellow central bankers couldn’t use the word “strong” enough.

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China’s Blowout IP, Frugal Stimulus, and Sinking Capex

2019-04-19

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2019-04-19

China Industrial Production 1999-2019
It had been 55 months, nearly five years since China’s vast and troubled industrial sector had seen growth better than 8%. Not since the first sparks of the rising dollar, Euro$ #3’s worst, had Industrial Production been better than that mark. What used to be a floor had seemingly become an unbreakable ceiling over this past half a decade. According to Chinese estimates, IP in March 2019 was 8.5% more than it was in March 2018. That was far more...

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Retail Sales In Bad Company, Decouple from Decoupling

2019-04-04

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2019-04-04

Retail Sales, NSA 2011-2018
In a way, the government shutdown couldn’t have come at a more opportune moment. As workers all throughout the sprawling bureaucracy were furloughed, markets had run into chaos. Even the seemingly invincible stock market was pummeled, a technical bear market emerged on Wall Street as people began to really consider increasingly loud economic risks.

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No Sign of Stimulus, Or Global Growth, China’s Economy Sunk By (euro)Dollar

2019-03-16

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2019-03-16

China Industrial Production 1999-2019
Najib Tun Razak was elected as Malaysia’s Prime Minister in early 2009. Taking office that April amid global turmoil and chaos, Najib’s first official visit was to Beijing in early June. His father, also Malaysia’s Prime Minister, had been the first among Asian nations to open formal diplomatic relations with China thirty-five years before.

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Downturn Rising, No ‘Glitch’ In Retail Sales

2019-03-13

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2019-03-13

U.S. Retail Sales, Jun 2011 - Dec 2018
You just don’t see $4 billion monthly retail sales revisions, in either direction. Advance estimates are changed all the time, each monthly figure will be recalculated twice after its initial release. Typically, though, the subsequent revisions are minor rarely amounting to a billion. Four times that?

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Monthly Macro Chart Review – March

2019-03-08

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2019-03-08

Economic Growth and Investment
We’re changing the format on our Macro updates, breaking the report into two parts. This is part one, a review of the data released the previous month with charts to highlight the ones we deem important. We’ll post another one next week that will be more commentary and the market based indicators we use to monitor recession risk.

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Something Different About This One

2019-02-22

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2019-02-22

China Retail Sales, Automobiles 2001-2018
In Japan, they call it “powerful monetary easing.” In practice, it is anything but. QQE with all its added letters is so authoritative that it is knocked sideways by the smallest of economic and financial breezes. If it truly worked the way it was supposed to, the Bank of Japan or any central bank would only need it for the shortest of timeframes.

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Retail Sales Landmine

2019-02-18

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2019-02-18

Retail Sales, NSA 2011-2018
Ignore Black Friday and Cyber Monday. Those are merely an appetizer, an intentional preamble to whet the appetite of hungry consumers looking to splurge. The real action comes in December. People look, some buy, after Thanksgiving, but as anyone counts down the actual twelve days of Christmas and celebrates the eight crazy nights of Hanukkah that’s when the retail industry makes its bank.

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China’s Eurodollar Story Reaches Its Final Chapters

2019-01-25

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2019-01-25

PBOC Balance Sheet, Nov 2007 - 2018
Imagine yourself as a rural Chinese farmer. Even the term “farmer” makes it sound better than it really is. This is a life out of the 19th century, subsistence at best the daily struggle just to survive. Flourishing is a dream.

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The Relevant Word Is ‘Decline’

2018-12-18

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2018-12-18

China Industrial Production, Nov 1998 - 2018
The English language headline for China’s National Bureau of Statistics’ press release on November 2018’s Big 3 was, National Economy Maintained Stable and Sound Momentum of Development in November. For those who, as noted yesterday, are wishing China’s economy bad news so as to lead to the supposed good news of a coordinated “stimulus” response this was itself a bad news/good news situation.

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Now Back To Our Regularly Scheduled Economy

2018-10-17

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2018-10-17

Retail Sales, Gasoline 2011-2018
The clock really was ticking on this so-called economic boom. A product in many economic accounts of Keynesian-type fantasy, the destructive effects of last year’s hurricanes in sharp contrast to this year’s (which haven’t yet registered a direct hit on a major metropolitan area or areas, as was the case with Harvey and Irma) meant both a temporary rebound birthed by rebuilding as well as an expiration date for those efforts.

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What’s Hot Isn’t Retail Sales Growth

2018-08-18

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2018-08-18

US Retail Sales, June 2011 - 2018
Americans are spending more on filling up. A lot more. According the Census Bureau, retail sales at gasoline stations had increased by nearly 20% year-over-year (unadjusted) in both May and June 2018. In the latest figures for July, released today, gasoline station sales were up by more than 21%.

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Bi-Weekly Economic Review

2018-06-22

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2018-06-22

10-Year Treasury Constant Maturity Rate 1990-2018
Is the rate hiking cycle almost done? Not the question on everyone’s minds right now so a good time to ask it, I think. A couple of items caught my attention recently that made me at least think about the possibility.  There has been for some time now a large short position held by speculators in the futures market for Treasuries.

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Anchoring Globally Synchronized Growth, Or We Gave Up Long Ago?

2018-05-24

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2018-05-24

China Fixed Asset Investment, Apr 2012 - 2018
January was the last month in which China’s National Bureau of Statistics (NBS) specifically mentioned Fixed Asset Investment (FAI) of state holding enterprises (or SOE’s). For the month of December 2017, the NBS reported accumulated growth (meaning for all of 2017) in this channel of 10.1%. Through FAI of SOE’s, Chinese authorities in early 2016 had panicked themselves into unleashing considerable “stimulus.”

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Bi-Weekly Economic Review: Growth Expectations Break Out?

2018-05-22

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2018-05-22

Economic Growth & Investment
There are a lot of reasons why interest rates may have risen recently. The federal government is expected to post a larger deficit this year – and in future years – due to the tax cuts. Further exacerbating those concerns is the ongoing shrinkage of the Fed’s balance sheet. Increased supply and potentially decreased demand is not a recipe for higher prices. In addition, there is some fear that the ongoing trade disputes may impact foreign demand...

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