China GDP big miss
BHP and RIO are getting smashed today thanks to a big miss from China’s GDP numbers.
The problem is that with China’s credit expanding at the ridiculous rate of around 4-5% a month and fixed asset investment still growing at over 20% per year, this GDP miss is not yet the beginning of a China Slowdown. They are still building empty apartments and offices and there is no sign of this slowing down at present. It has to at some stage, but it has not yet started.