February 2020 - Page 22 of 39 - Financial Occultist

All enterprises are not to resume work before 20 February

The situation is clearly not getting drastically better just yet and this will no doubt weigh further on automakers (Hubei is a key region for China’s auto industry) and other businesses as the work suspension carries on for much longer.

Yields continue to track lower on the day

13-Feb-20 12:20 pm

Uncategorized

Anirudh Sethi

US Treasury 10-year yields down by nearly 5 bps to 1.585%

USGG10YR

The risk-off mood looks to stay the course ahead of European trading and this should set up a softer start for risk in the session ahead.

The track lower in yields is also pushing the yen higher as we see USD/JPY inch towards session lows of 109.78 as sellers threaten a break of the 100-hour moving average.

The latest economic data from China isn’t helping in that regard, with CAAM also warning that auto sales and production figures in February will be “bad”.

Nikkei 225 closes lower by 0.14% at 23,827.73

13-Feb-20 12:18 pm

Anirudh Sethi

Asian equities slip on renewed coronavirus concerns

The jump in the number of cases reported by Hubei here – owing to a reclassification – is causing investors to be a little unsettled to start the day, as concerns surrounding the coronavirus outbreak continue to persist.

That has seen risk trades take a bit of a hit, with Chinese equities on course to snap their seven-day rally; Shanghai Composite is down by 0.8% currently.

USD/JPY is lingering near the lows around 109.84 currently as Treasury yields are also marked lower with 10-year yields down 3.6 bps to 1.597% at the moment.

Heads are rolling in China Hubei administration – party secretary fired

13-Feb-20 09:34 am

Analysis

Anirudh Sethi

Hubei province party secretary has been relieved of duty

Replaced with Shanghai mayor as the new Hubei communist party boss, Ying Yong has worked closely with Chinese President Xi

Charlie Munger warns ‘lots of troubles coming’ – ‘too much wretched excess’

13-Feb-20 09:32 am

Analysis

Anirudh Sethi

Charlie Munger is Warren Buffett’s longtime business partner and vice chairman of Berkshire Hathaway

CNBC have this report up on his comments at a shareholders meeting.

“In China, … they love to gamble in stocks. This is really stupid,” Munger said. “It’s hard to imagine anything dumber than the way the Chinese hold stocks.”
To make his point about excess, Munger cited the proliferation of EBITDA as a fake profit metric. “I don’t like when investment bankers talk about EBITDA, which I call bulls— earnings,”

Here is the link for more.