Business

One day after China's rate policy unexpectedly decoupled with the Fed, and in light of recent developments in China's loan market discussed last night, Goldman's MK Tang writes that the firm has "received a number of inquiries on yesterday’s China money and credit data, as well as recent PBOC rate actions." To answer all lingering questions, Tang has published the following handy Q&A "to link these issues together by answering some of the key questions."

China: Q&A on money and rates

NFLX is now down almost 10% from last Thursday's close as FANG stocks tank at the open today, extending losses post-FOMC...

Having stalled at the Fibonacci 61.8% retracement of Friday/Monday's drop, FANG Stocks are tumbling at the open today...

Led by NFLX...

And of course that is weighing on NASDAQ (and S&P)...

After an exuberant spike in April, US Manufacturing output dropped 0.4% MoM in May (the biggest drop since Feb 2015), missing expectations of a 0.1% rise by three standard deviations.

Manufacturing Output has been swinging violently in the last 3 months...

Headline Industrial Production also disappointed (unch vs +0.2% exp), the weakest print since January.

After three yuuge months for Industrial Production gains, the Trump train appears to have stopped.

Finally there's this...

The Fed wants to start shrinking its balance sheet. That it may not start doing this right away or could reverse this at any time is irrelevant right now…

The IMPORTANT THING is the Fed BROADCASTING what it wants.

This is just like the 2013 QE taper: the Fed broadcast that it was coming for months before it started doing it.

The Fed’s current balance sheet reduction plan is the same thing.

What you or I think about this doesn’t matter: we’re not in charge of Fed policy.

In a preview of more pain to come for US, and global, workers, moments ago Nike announced that it will soon be parting ways with approximately 2% of its 70,700 global workforce, or roughly 1,500 employees.

Nike introduced the Consumer Direct Offense, a new company alignment, resulting in leadership and organizational changes as part of which the company would see an overall reduction in about 2% of the company’s global workforce to "streamline and speed up strategic execution."