Business

The Chinese government’s latest crackdown on capital outflows and corporate leverage is intensifying, and that’s bad news for Manhattan’s property market.

According to a report by Morgan Stanley cited by Bloomberg, new restrictions being imposed on the most acquisitive Chinese companies will likely lead to an 84% drop in Chinese overseas property investment this year, and a further 18 percent drop in 2018.

The markets most vulnerable to this slowdown, according to MS, are the US, UK, Hong Kong and Australia, with commercial properties the most vulnerable.

Former House Speaker Newt Gingrich and former Best Buy CEO Brad Anderson penned an op-ed in the USA Today warning Republicans that they have about 4 months left to pass tax cuts or suffer the inevitable consequences of massive losses in the 2018 mid-terms that will return control of Congress to Nancy Pelosi.

The specter of House Speaker Nancy Pelosi is looming.

 

Excerpted from John Hussman's Weekly Market Comment,

For context, John offers a brief history lesson for the goldfish-like memories of Wall-Street-wannabes and head-in-sand home-gamers who have forgotten what it was like in 2000 and 2007...

One month after Tesla stock tumbled when the electric car maker announced that it had missed Wall Street estimates for the second quarter, delivering only 22,000 vehicles instead of the 22,912 expected, moments ago Tesla reported adjusted, non-GAAP Q2 earnings which beat expectations, with an adjusted loss of $1.33, better than the -$1.88 expected, which curiously was identical to the -1.33 loss in Q1. 

Authored by Charles Hugh Smith via OfTwoMinds blog,

If our faith in the future and our resilience is near-zero, then we can't take any chances.

You've probably noticed how risk-averse Hollywood has become: the big summer movies are all extensions of existing franchises--mixing up the superheroes in new combinations, or remaking hit films from the past--all safe bets.