“World trade is stuck in its longest slump since the financial crisis after another setback in September suggested the global economy is yet to turn the corner.
“Volumes slipped back sharply in September compared with August, falling 1.3pc to cut short a two-month rebound, according to CPB’s World Trade Monitor.
“The monthly fall was the second-sharpest this year, while a fourth consecutive year-on-year drop in trade volumes marks the worst run since 2009.”
“Car sales around the world are expected to see their steepest year-over-year decline in 2019 since the financial crisis as consumer demand from the U.S. to China softens.
“Global car sales are expected to fall by about 3.1 million in 2019, a bigger drop than in 2008, Fitch Ratings economics team said Monday…”
“The market for securities backed by the riskiest US car loans is booming, as yield-crazed investors shrug off nagging concerns over the health of the American consumer…
“Still, concerns are mounting that consumers may have taken on more debt than they can handle. Data from the Federal Reserve Bank of New York show that the total proportion of consumer auto loans more than 90 days late — classed as “seriously delinquent” — has been steadily rising.”
“China’s central bank has warned over the dangers of a rapid build-up in the country’s household debt, urging greater oversight of mortgages and consumer loans to decrease risks to the country’s financial system.”
“Hainan Airlines Holding has said it is in talks with investors to resolve an unpaid CNY1 billion (USD143 million) privately placed bond issued to an affiliated firm.
“The Haikou-based carrier told news site The Paper that it would handle the issue after the 21st Century Business Herald reported that the firm had failed to pay interest or repay principal for the three-year bills, which were issued to Grand China Air and expired yesterday.”
“Mexico’s economy entered a mild recession during the first half of 2019 and was flat in the third quarter, revised data from the national statistics agency showed on Monday, handing a setback to the plans of President Andres Manuel Lopez Obrador…
“Alberto Ramos, a Goldman Sachs economist, said in a note to clients the bank now expected no growth to be registered in Mexico in 2019.”
“Argentina will finish 2019 at 55% annual inflation, the country’s treasury minister said on Monday, capping off a tumultuous year for Latin America’s No. 3 economy that also saw voters usher in a new leftist government.
“The inflation forecast is higher than the government’s previous estimate of 53%…”
“A teenager who became a symbol of ongoing protests in Colombia when he was injured by a teargas cannister died of his wounds late on Monday, after President Ivan Duque met with unions and business leaders on the fifth straight day of demonstrations.”
“From Chile to Sudan, Lebanon to Colombia, mounting anger and frustration over rising economic and social inequality, political corruption and disillusionment with democratically elected and authoritarian governments have led to a wide array of mass protests in recent months.”
“Riot police used water cannons on anti-government protesters outside Georgia’s parliament building in the capital, Tbilisi. Thousands of people demonstrated on Monday evening calling for reform to the country’s electoral system…
“Rallies have been held for the last two weeks, with activists demanding proportional representation.”
“What do Indian onions and Chinese pigs have in common? They could be straws in the wind over the next global food price shock, according to researchers at investment bank Nomura. India… the world’s biggest exporter of the bulb slapped a ban on overseas sales after monsoons hit crops, pushing up domestic prices. Last week it extended the ban until February, sending prices up all over Asia.
“…Hong Kong pork prices have doubled thanks to the African swine fever ravaging Chinese herds. Exports to the city have dropped by more than half over the year.”
“Earlier this month the CME looked at the results of negative rates in four regions: the eurozone, Japan, Sweden and Switzerland. They all went negative between 2014 and 2016.
“None of the four “have achieved their inflation targets as a result of negative deposit rates,” the CME writes.
“Moreover, the negative-rate experiment so far has failed to stimulate growth sustainably.”