Today I highlight two topics:
First, the 9% yoy fall in HK's 2Q GDP isn't too bad - but the 46.6% yoy fall in services exports is genuinely disastrous. Services exports is, after all, what HK does, and unless this collapse is reversed, Hong Kong's pricing (and therefore financing) structures will come under serious pressure.
Second, I look at the fall in US inventories reported by the retail and wholesale sectors in June. Much to my surprise, it turns out that right now the US is running inventory-light! Two months ago I was worried about whether the inventory overhang would compromise the industrial recovery. How rapidly that sorted itself out!
