China Reports Decline In Factory Growth
A lot has been going on, on many fronts in China and the US. However, what is also true is that there has also been an exceptional slowdown in China’s GDP growth.
Moreover, according to reports, China’s PMI dropped to 50.0 in November, after it rose to 50.2 in October. On Friday, additional pressure on Beijing led to higher pressure and additional support for both China and US.
On the other hand, China’s exports are so far resilient. Its shipments are high and more than that of US right now. Orders have been slumping at the moment and there is also a very chance of further decline after US tariffs come to effect.
Additionally, the drop in PMI also shows that at the moment it is also missing market expectations and it is down from 50 in November to 50.2 in October.
However, this isn’t the end because market watchers are expecting a big break through in the ongoing trade wars between the two countries. However, some are still expecting certain positive outcomes of this on going trade war.
China’s PMI surveyhas also showed some weakness, both domestically and abroad too.
The production sub indexalso showed a big decline, which shows that activity in China is reducing greatly.
Additionally, new export orders have also dropped for the 6th straight month in a row. The sub index increased from 47 to now 46.9 in October.
On Friday, according to a NBS report showed on Friday, China’s service sector moderated in November. However, despite that, it has remained at a very strong and solid level.
Moreover, the official non-manufacturing PMI also reduced from 47.1 to 47.6 in October, which shows that there has been a weak domestic demand in the country.
In other news:
New reports are suggesting that Huawei will be hitting brand new highs of $100 billion in revenue this year.
Huawei’s revenue will be higher in 2018 and it is being estimated that it will be higher than $100 billion for the first time.
According to Xu, the $100 billion mark is no surprise but a big one indeed.
Reports reveal that Huawei generated about 325.7 billion yuan – in revenue. This was the first time in 6 months this happened. They generated about $49 billion in revenue.
The growth so far has been driven by a very strong performance. Additionally, there are a variety of businesses that are under Huawei’s name. Particularly the consumer division too which has continued to rise.
Moreover, Huawei is now the second largest company in the world today. In fact, Huawei is in fact ahead of Apple. XU has also not celebrated on what has been driving growth.
Additionally, the growth so far has been driven by a very strong performance and many businesses are flourishing.
Moreover, Nasdaq Composite– a tech heavy index, dropped by 0.25% on Thursday, as it settled at 7273.08. The Dow Jones industrial average closed down a little less, as it settled at 27.59. It snapped at a 3 day winning streak, whereas the S&P 500 dropped by 0.2% as investors awaited for some news regarding China and US trade negotiations.
There are certain other technology companies that are also doing pretty well at the moment. Facebook is also doing considerably well at the moment because it seems to have stabilised very well and its stock is significantly cheap at the moment.
Stay tuned for more updates at The Tradable.