China’s industrial profits suffer first drop in three years, piles pressure on economy

I guess even the most starry eyed China fanboys are aware now that there is something amiss with the great dragon and that China is in for some pain. I think the picture here is probably on the embellished side but even if it just somehow reflects reality, reduced growth in the Middle Kingdom also means less consumption of commodities – such as crude oil. What will that do to the oil price. OPEC+ has two possibilities. Lower production and give shale producers a shot in the arm each time or stick it out in the price desert until the shale producers have dwindled. Just seems that the pain is greater for OPEC+ than for the shale folks.

Earnings at China’s industrial firms in November dropped for the first time in nearly three years, as slackening external and domestic demand left businesses facing more strain in 2019 in a sign of rising risks to the world’s second-largest economy.

Read on …