While the market has been grinding higher on low volume, with the recent NFP spike “explosion”, the world’s n01 economy to be, seems to be slowing down. China’s Lunar Year sales period has been slower than anticipated. With the Chinese market having put behind the best January performance ever, these latest retail figures could make investors dissapointed. From Bloomberg;
Holiday sales on the mainland grew 16 percent to 470 billion yuan ($75 billion), the slowest pace since the 2009 financial crisis and three percentage points below last year’s increase. China is finding it is not immune to global economic forces and the slowdown is hitting Chinese consumers, who may increase this year’s spending at a slower pace than in 2011.
This may mean trouble for the growing number of foreign companies rushing into China, especially luxury brands, said Jason Yuan, an analyst at UOB Kay Hian in Shanghai.
“This year is going to be tough, probably the toughest year for many foreign luxury brands since they entered into China,” he said.
People have been busy digesting Friday’s NFP figures. Meanwhile, Greece is resuming the free fall. The inevitable must happen, irrespective of all deals. From Bloomberg;
“The distance between success and failure, which could come from misfortune or misunderstanding, is very small,” Greek Finance Minister Evangelos Venizelos told reporters in Athens yesterday after consultations with euro area finance ministers. “We are on razor’s edge.”
Venizelos said while agreement had been found on issues such as bank recapitalization and state asset sales, the government and the so-called troika of international creditors were still at odds over labor reforms and fiscal measures for this year. The talks with euro-area finance ministers were “very difficult,” he said.
Live from Syntagma square, remember?