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Editor's Note: Below is a complimentary excerpt from investing research sent to subscribers this morning from Macro analyst Christian Drake.

The Gravity of #TheCycle Manifests In China - zw3

The gravity of #TheCycle continues to manifest in Asian high frequency macro data. 

In the wake of this weekend’s trade data which saw China report a -1010 bps deceleration in Export growth – down to 5.4% YoY in NOV and marking the lowest pace of growth since AUG ’17  - China Retail Sales growth decelerated -50 bps to +8.1% Y/Y, marking the slowest pace of growth in 14.5 years.   

It was the same story across the manufacturing economy. Industrial Production growth slowed -50bps to +5.4% Y/Y – good for a 10Y rate-of-change low.  The 3-month auto tariff détente is the Tourist destination of the day, the cycle remains both the tree and the forest.   

The Gravity of #TheCycle Manifests In China - zw4