Apple stock plunged nearly 10% on Thursday after the company cut its
revenue forecast due to slowing iPhone sales in China. Apple’s woes
dragged U.S. stock indices lower by more than 2% as fears of a more
extensive China-driven slowdown spread.
For years, no matter what was
happening elsewhere, global companies bet billions upon billions of
dollars that China’s consumers would keep spending money.
長年、他国で何が起きようとも多国籍企業は中国消費は巨額を維持することに賭けてきた。
Now, just when the world economy could use their financial firepower, they are no longer so quick to open their wallets.
今や、世界経済が金融弾薬を用いてももはや彼らの財布を緩めることはできない。
The latest sign of a slowdown in spending in China came Wednesday, when Apple unexpectedly slashed its financial forecast, citing disappointing iPhones sales in the country. The weakness followed reams of other data — declining car sales, lagging retail spending, a slumping property market, a tougher job market — that suggest Chinese consumers may be losing their once unshakable confidence.
That
could have a big impact on a world looking for engines of growth, on
companies that counted on China’s continuing expansion and on global
investors who have long viewed China as a steady source of profits.
“It’s not going to be
just Apple,” CEA chairman Kevin Hassett said in an interview on CNN.
“There are a heck of a lot of U.S. companies that have sales in China
that are going to be watching their earnings being downgraded next year
until we get a deal with China.”
「これはアップルだけに起きていることではない」とCEA議長 Kevin HassettはCNNのインタビューに答えた。「中国で大きな売上をしめている米国企業は多い、中国との交渉終結までこれら企業の収益は要注意だ。」
Hassett argued that a softer
economy in China is cutting into U.S. companies’ sales there and that
the economic pain gives Trump leverage in ongoing trade negotiations.
“That puts a lot of pressure on China to make a deal,” he said.
I agree with Kevin Hassett that many more American companies are
going to take a hit from China’s slowdown and the ongoing trade war, but
the risks posed by the ultimate bursting of China’s massive credit
bubble are far greater, yet virtually nobody is discussing it.
As the chart of China’s total debt as a percent of GDP shows, China has
been gorging on debt for the past decade. This debt binge has been
amplifying China’s economic growth and allowing its consumers to buy
Western consumer goods like Apple iPhones.
The scary truth is that Apple and other American companies
have been benefiting from China’s credit bubble, but most have no clue
that this bubble is going to burst and cause a severe recession
or depression in China, causing American exports to China to plunge.
When is society going to learn that debt binges create temporary
economic booms, but always end in terrible busts?
恐ろしい真実は、アップルやその他米国企業は中国の与信バブルの恩恵を受けていたことだ、しかしだれもこのバブルがいまはじけ、深刻な景気後退もしくは恐慌が中国に来ることを見通していない、こうなると米国から中国への輸出は急落する。債務のどんちゃん騒ぎが一時的な経済ブームを生み出すが、常にそれはひどい炸裂で終わることを社会全体がいつ気づくだろうか? Please follow me on LinkedIn and Twitter to keep up with my updates. Please click here to sign up for our free weekly newsletter to learn how to navigate the investment world in these risky times.
Amazonで買物をしてContrarianJを応援しよう Albert Edwards: This Was The Final Recessionary Shoe, And It Has Now Fallen by Tyler Durden Thu, 06/27/2019 - 12:45 Exactly three months ago, in late March, the 3 month-10 year spread inverted for the first time since 2007... ちょうど3か月前の3月遅くのことだ、3M10Yスプレッドが2007年以来初めて反転した・・・・ ... an event which sparked near-panic in the market as historically curve inversion has preceded the last 7 recessions. ・・・市場は準混乱状態になった、というのも歴史的に見てイールドカーブ反転が過去7回の景気後退の前兆となっているからだ。 However, while the inversion was certainly a memorable event, the question on everyone's lips is how do risk assets perform once the curve flattens and/or inverts. According to backtests from Goldman, since the mid-1980s, significant stock drawdowns (i.e. market crashes) began only when term slope started steepening after being inverted. ...
Amazonで買物をしてContrarianJを応援しよう "On The Precipice" by Tyler Durden Mon, 06/24/2019 - 14:30 Authored by Kevin Ludolph via Crescat Capital, Dear Investors: The US stock market is retesting its all-time highs at record valuations yet again. We strongly believe it is poised to fail. The problem for bullish late-cycle momentum investors trying to play a breakout to new highs here is the oncoming freight train of deteriorating macro-economic conditions. 米国株式は記録的バリエーションのもとで再度過去最高を試している。私どもはこれが失敗すると強く信じている。景気拡大終盤で強気のモメンタム投資家が新高値を試そうとしていることの問題は、マクロ経済条件の悪化にある。 US corporate profit growth, year-over-year, for the S&P 500 already fully evaporated in the first quarter of 2019 and is heading toward outright decline for the full year based on earnings estimate revision trends. Note the alligator jaws divergence in the chart be...
Powell Keeps The Bond Bull Kicking Written by Lance Roberts | Mar, 21, 2019 In a widely expected outcome, the Federal Reserve announced no change to the Fed funds rate but did leave open the possibility of a rate hike next year. Also, they committed to stopping “Quantitative Tightening (or Q.T.)” by the end of September. 多くの人が予想したとおり、FEDはFFR変更をしないだけでなく来年も不明とした。さらには、QTを9月末に終えると約束した。 The key language from yesterday’s announcement was: 昨日の発表の重要な部分はこういう具合だ: “ Information received since the Federal Open Market Committee met in January indicates that the labor market remains strong but that growth of economic activity has slowed from its solid rate in the fourth quarter . Payroll employment was little changed in February, but job gains have been solid, on average, in recent months, and the unemployment rate has remained low. 「1月のFOMC以来の情報を分析すると、労働市場は強いがQ4に比べると経済成長は鈍化している。2月の雇用環境にほとんど変化がなかった、ここ数ヶ月確実に雇用は増えている、そして失業率は低いままだ。 Recent indicators point to s...