China’s resale prices register smallest monthly drop in eight months
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China’s central bank cut its principal lending rate to a fresh low in a bid to support softening economic activity. The move eases borrowing costs and signals a readiness for further accommodation, but it does not remove near-term risks tied to credit quality and property-sector fragility.
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China's Five-Year Target Confronts a Demand Crisis
Beijing prepares a new five-year economic goal while consumer demand remains weak, the property sector slides, and leaders signal a pivot toward internal demand—backed by coordinated ministry action and targeted sector pilots (notably services and winter-sports). Policymakers must balance headline growth credibility, constrained fiscal room at the local level, and delicate reserve/FX trade-offs when calibrating supportive measures.
China curbs auto price war with ban on below‑cost car sales
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China’s central bank has limited firepower to halt a deflationary slide
Regulatory guidance that nudged some banks to trim US‑Treasury holdings shook currency and bond markets, underlining how fragile domestic demand and a constrained policy tool kit limit the People’s Bank of China’s ability to stop falling prices. Broader pressures — from managed FX policy, reserve‑management trade‑offs and episodic capital outflows tied to travel and global rate moves — mean Beijing can only buy time, not quickly restore durable inflation.
U.S. Retail Sales Stalled in December, Dampening Holiday Momentum
Retail spending showed no growth in December, undercutting expectations and signaling that household support for growth cooled as the year ended. Elevated living costs and employment anxieties appear to have curtailed the late-season pickup, leaving retailers with weaker-than-expected demand heading into 2026.
China Signals Stability in Response to Rising Global Volatility
Beijing prioritized domestic steadiness, nudging its growth target lower while keeping fiscal support steady and adjusting defense outlays. Key metrics: GDP target 4.5–5%, defense +7% (1.91 trillion yuan), and a record-high central budget-deficit posture balanced against constrained provincial finances.
U.S. Homebuyers Should Expect Only Modest Relief as Policy Moves Clash with Larger Market Forces
Federal actions — including a Fed leadership signal toward easing and a presidential order for Fannie Mae and Freddie Mac to buy roughly $200 billion of mortgage bonds — may shave a few basis points from borrowing costs. But a prior round of easing, a Fed policy pause, the Treasury yield outlook and persistent housing supply shortages suggest any drop in mortgage rates will be modest and uneven.