Submitted by Mike Gipp of The World Complex
Developing And Redeveloping Nanning, Guangxi Province
Nanning is called the Green City in China. Unfortunately, having had dinner in one of those rooftop revolving restaurants, I can tell you it is not a beautiful city.
From Qingxiushan looking south and west, one can see a huge swath of developing land at the edge of Nanning.
With Q4 earnings season drawing to a close, here is a quick recap of the key issues facing corporate CEOs and CFOs based on their conference calls as summarized by Goldman's David Kostin: 1) Company managements forecast positive US GDP growth in 2016, in contrast with investor concerns of a potential recession. However, global growth prospects appear grim, particularly within commodity-exposed nations. (2) Strong domestic consumer demand persists amid industrial weakness. (3) Several firms announced large or accelerated share repurchase programs in 2016.
After repeated warnings about China's soaring non-performing loans on this site (here, here and here), which have underscroed the basis of Kyle Bass' "big trade for 2016", namely shorting China's currency in the bet it will have to massively devalue in order to address its incipient default cycle, virtually everyone is aware that China has a big Non-Performing Loan problem, a problem whose size we first quantified as much as $3 trillion, or the same amount as all of China's FX reserves.
Submitted by SaxoBank's Dembik Christopher via TradingFloor.com,
Last month, in our latest profile of the $2.8 billion Horseman Capital, we said that not only has that fund which some have called the "most bearish in the world" generated tremendous returns almost every single year since inception (except for a 25% drop in 2009 after returning 31% during the cataclysmic 2008), but more notably, it has been net short - and quite bearish on - stocks ever since 2012. In that period it has consistently generated low double-digit returns, a feat virtually none of its competitors have managed to replicate.