E The Daily Shot And Data - June 14, 2016


We begin with several developments in China.

1. The country's fixed asset investment growth slowed to the lowest level since 2000. Current investment activity is dominated by the government as it tries to target a specific growth rate.

Source: Investing.com

2. One can see the fiscal stimulus in Beijing's official expenditures.

Source: Reuters

3. Regional government tax revenue growth has picked up recently amid improved property investment. It's back to everyone making money on land development deals.

Source:  ‏@fastFT

Source: Deutsche Bank,  ‏@joshdigga 

4. Bloomberg's China GDP tracker shows the overall growth stabilizing. The question, of course, is whether this is sustainable without the fiscal stimulus.

Source: @business

5. China's domestic crude oil production saw the largest year-on-year decline in 15 years.

Source: ‏@JavierBlas2, @business 

6. Monday's yuan drop reignited jitters around the RMB depreciation vs. the dollar. Beijing is trying all it can to stem capital outflows but significant loopholes around capital controls remain.

Source: @barchart

7. China's equities are under pressure again.

Source: @barchart

8. Soy meal futures in China go vertical, with Beijing struggling to contain speculative activity in agricultural futures.

Source: @barchart

1. In Japan, the 15yr JGB yield just went negative. Longer-dated JGB yields all hit record lows. 

2. Bank lending in Japan is growing steadily, suggesting that banks are not hampered by negative rates - as some had feared.

Source: ‏Barclays, @joshdigga

3. Capital investment in Japan seems to be dominated by small and mid-size firms.

Source: ‏Deutsche Bank, ‏@joshdigga

4. The ongoing yen rally (dollar-yen decline shown) is bad news for Abenomics. Is intervention coming?

Source: @barchart

5. As a result of the yen strength, the Nikkei continues to fall - down 23% over the past year (5% in just the last 2 days).

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