Macro China

Looks like Europe will be making headlines again “as meetings between Greece’s prime minister and euro-zone leaders this week loom.”  WSJ

But our interest is China centric:  Are the forecasts for re-acceleration in Chinese growth accurate, or is “The Chinese economy is only at the beginning of a harsh winter” at Bloomberg.

Do Falling Commodity Prices Mean Lower Demand?  The conclusion “Falling commodity prices are positive!” seems backward.  Value Plays

BHP Delays $68 Billion of Project Approvals as Net Plunges at Bloomberg.  The blame is given to escalating capital costs, yet I’ll suggest commodity pricing not being high enough on slack demand is the chief concern.

Iron ore is the poster child of weakness in this downturn (Business Insider).  Iron ore floor becomes iron ore trapdoor at FT Alphaville.  “Inventories are high because ore can’t be sold,” said Umetal analyst Zhang  Jiabin. “Steelmakers aren’t willing to accept shipments. They’re not willing at  all. Everyone is still digesting inventory.” (Caixin)

China’s ‘golden years’ over says Vale at Mining.

“It means the downward trend is slowing down and most likely to hit a low (in July),” said Tsai.”  China Times

We shall continue to investigate.

Interesting, if not useful:  “Yum! Brands Inc has opened its 300th Kentucky Fried Chicken franchise in Beijing, 25 years after entering the Chinese mainland market, the company said Tuesday.”  China Daily