And finally, here’s what Garfield is interested in this morning.
Foreign investors in China are voting with their wallets and pulling right back from an economy that was regarded for many years as a prime destination. Direct investors took out $11.8 billion more from China last quarter than they put in, the first net outflows since records began in 1998. Portfolio managers are fleeing too, with an unprecedented three straight months of equity outflows through October.
Those outflows may continue for some time given China’s economic struggles. The world’s biggest exporter is suffering a decline in shipments abroad, as the cumulative burden of trade disputes, regulatory crackdowns and the global turn toward onshoring takes its toll. Data due Thursday are expected to show a return to deflation, and seemingly endless real-estate collapses underscore the economy’s struggles to regain momentum.
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