American manufacturing exploded higher in economic data released today for January. In other news, China is looking for ‘flexibility’ on the trade deal recently signed due to the coronavirus. Which begs the questions, there are reports the virus was intentionally released. Could this be the reason? To get out of the tough trade deal Trump negotiated? We know China doesn’t give a damn about their people. It’s something to ponder.
Chinese officials “are hoping the U.S. will agree to some flexibility on pledges in their phase-one trade deal” as Beijing tries to contain the fallout from the health crisis that has infected over 17,500 and killed over 360, reported Zero Hedge.
The Phase 1 trade deal which was signed on Jan. 15 – just one day before China finally started reporting virus data – and is supposed to take effect in mid-February, has a clause that states the U.S. and China will consult “in the event that a natural disaster or other unforeseeable event” delays either from complying with the agreement. It’s unclear whether China has formally requested such a consultation yet, but according to Bloomberg sources the plan “is to ask for it at some point.”
Market Manufacturing PMI (Jan) printed at 50.6 vs 49.6 consensus estimate.
ISM Manufacturing Employment Index (Jan) printed at estimate of 46.6.
ISM Manufacturing PMI (Jan) printed at 50.9 v 48.5 estimate.
ISM Manufacturing Prices Paid (Jan) printed at 53.3 vs 51.0 estimate.
ISM Manufacturing New Orders Index (Jan) printed at 52 vs 50.8 estimate.
Construction Spending (MoM) (Dec) decreased to -0.2 vs 0.5 estimate.