This is the ultimate leading indicator. The news is very bad. We also see 500,000,000 under lock down in China as the virus response continues. Let us hope that works there. In the meantime we hope that our own measures will also work to stop this from ripping out through the globe.
As i have already posted, the signals are all bad. worse, we do not have a grasp of the essential truths here and the best so far is a five percent death rate and most of two weeks incubation period. Then we do not understand yet how long it takes to cook off when you are under care. Sooner or later 95% of us will recover and be immune.
If we are really lucky, natural global immunities will stifle all this. today i continue to have way more questions than answers.
... rate and tax cuts, and various fiscal stimulus measures, outright banning the shorting of stocks, there is one indicator that Beijing has been unable to manipulate. Ominously, it is the one indicator that leads overall Chinese output and suggests that the world's 2nd largest economy has hit a brick wall.
We are talking, of course, about Dr. copper, that age-old barometer for the health of the global economy, which after rebounding modestly from a record 13-day drop, has once again resumed sliding, in the process creating a gaping divergence with the US equity market, which so far has shown an immunity - so to speak - to any concerns about viruses or frankly anything else.
Well, they are none of China's business: "Sellers have to accept our terms because the disease has made business contracts invalid,” said an executive at Shenzhen Yongfulu, a copper trader in southern China with annual revenues of about Rmb40m. Yongfulu imported 4,000 tonnes of copper last year. The company asked its suppliers in Chile and Somalia to postpone shipments of 400 tonnes of copper for at least two weeks.