China's Economy Weakened Further in July, Early Indicators Show

The earliest indicators for China’s economy showed the pace of expansion slowing this month, highlighting the reasons behind policy makers’ decision to add stimulus in the face of escalating trade tensions. “Domestic businesses were dented by tightening financing conditions, while trade conflict hits exports and hurts market sentiment," according to Fielding Chen at Bloomberg Economics, who aggregates the earliest available indicators on business conditions and market sentiment. With the funding squeeze hurting domestic activity and the trade war threatening external demand, policy makers have unveiled a package of fiscal support including tax cuts and acceleration of bond issuance for infrastructure investment, while the central bank has cut reserve ratios three times this year. There are also signs that the ongoing campaign to curb leverage is being softened.

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IMF China Mission Chief James Daniels: 

"CNY currency moved relatively quickly vs USD in recent weeks, 
China should allow yuan to be more flexible yuan vs the US dollar shows flexibility, is 'normal and desirable'

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China's economy may pass the size of the US economy in 2030. China is using derivative forwards relieving pressure withing banking system. It's wholesale financing is wobble wobble. It's not reporting swaps, options, forwards with IMF like ever other central bank. 

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Interesting -Trump's re-election flags are ready to ship, but they are made in China - and could get hit by his own tariffs.

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Obviously, Administration finds trade peace possible on two fronts - but China situation appears to be getting worse...We could say that Trade deal with EU and NAFTA is in front of door... in other hand, total trade war with China is (almost) certain...

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