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China’s Latest Bond Scare Casts Doubt on a $1.3 Trillion Market

(Bloomberg) — The latest bond failure by a Chinese local government investment arm has rekindled concerns about a group of borrowers whose outlook is closely tied to Beijing’s shifting definition of its implicit backing.The debt woes faced by Hohhot Economic & Technological Development Zone Investment Development Group, a local government financing vehicle from Inner Mongolia, have sent chills among investors holding other such LGFV bonds, driving prices sharply lower for some.The development also came just as onshore corporate bond defaults in China rose to a record high this year as the worst economic slowdown in three decades constrains Beijing’s ability …read more […]

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INTL FCStone pegs Australian wheat production below official estimates

Commodity brokerage INTL FCStone on Monday projected this year’s Australian wheat production to come in 5.6% lower than official estimates, as a crippling drought in the country’s east shows no signs of easing. The company forecast Australian wheat production for the 2019-20 season at 14.97 million tonnes, below the country’s latest official estimate of 15.85 million tonnes. Australia’s chief commodity forecaster last week cut its production forecast by nearly 20% for the year through June 2020 as an unrelenting drought will likely see output fall to an 11-year low. …read more […]

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JPMorgan Sees $410 Billion Bump to Stocks’ Demand-Supply Balance

(Bloomberg) — Equity demand is likely to rise next year while supply contracts, according to JPMorgan Chase & Co.Retail investors and equity long/short hedge funds are expected to drive demand for equities in 2020, JPMorgan strategists led by Nikolaos Panigirtzoglou said. They foresee improvement in equity demand versus supply of about $410 billion, when calculated by adding up the projected demand-flow changes and subtracting the supply change compared with 2019.That’s around half the improvement this year relative to 2018, which is estimated at $850 billion — the best since 2010 — according to JPMorgan’s estimates.Institutional investors, such as balanced mutual …read more […]

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China Sets Up National Pipeline Company in Major Energy Revamp

(Bloomberg) — China announced the creation of its long-planned national oil and gas pipeline company, officially kicking off one of its biggest energy revamps aimed at helping supply keep pace with swelling demand.The move marks a “key step” in China’s efforts to deepen reforms of its oil and gas sector, the official Xinhua News Agency said, without giving further details.The government has planned to merge the networks operated by its three state-owned giants under a single operator, a key step to removing barriers that have hampered domestic production, and which dovetails with efforts to use more gas instead of coal.Click …read more […]

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What China's Weak Export Data Means For Trade Talks

Dec.08 — The unexpected drop in China’s exports in November shows one reason why the nation wants to agree on a phase one trade deal – U.S. tariffs are hurting China’s exports at a time when global demand is already weak. Bloomberg’s Selina Wang speaks with Rishaad Salamat and Tom Mackenzie on “Bloomberg Markets: Asia.” …read more […]