UK PM May to face no-confidence vote after humiliating defeat over her Brexit deal

    UK Prime Minister Theresa May suffered humiliating defeat over her Brexit deal. It’s voted down by 432 to 202, the biggest loss in modern UK history. It’s uncertain what the path will be exactly like after this point. But what’s sure is that opposition Labour Party leader Jeremy Corbyn has swiftly called for a no-confidence vote in the government. And that would be held at 1900GMT on Wednesday, today.

    In a well-prepared statement, May said in the parliament after the defeat that “It is clear that the House does not support this deal. But tonight’s vote tells us nothing about what it does support. Nothing about how – or even if – it intends to honor the decision the British people took in a referendum Parliament decided to hold.”

    She added that the first thing to do is to “confirm whether this government still enjoys the confidence of the House.” Secondly, she will meet with Conservatives, DUP and other senior parliamentarians from across the house to find “ideas that are genuinely negotiable and have sufficient support in this House.” Thirdly, she will go back to EU with those ideas.

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    May’s statement below:

    “Mr Speaker, the House has spoken and the Government will listen.

    It is clear that the House does not support this deal. But tonight’s vote tells us nothing about what it does support. Nothing about how – or even if – it intends to honor the decision the British people took in a referendum Parliament decided to hold.

    People, particularly EU citizens who have made their home here and UK citizens living in the EU, deserve clarity on these questions as soon as possible. Those whose jobs rely on our trade with the EU need that clarity. So with your permission Mr Speaker I would like to set out briefly how the Government intends to proceed.

    First, we need to confirm whether this government still enjoys the confidence of the House. I believe that it does, but given the scale and importance of tonight’s vote it is right that others have the chance to test that question if they wish to do so.

    I can therefore confirm that if the Official Opposition table a confidence motion this evening in the form required by the Fixed Term Parliaments Act, the Government will make time to debate that motion tomorrow. (Wednesday)

    And if, as happened before Christmas, the Official Opposition decline to do so, we will – on this occasion – consider making time tomorrow to debate any motion in the form required from the other opposition parties, should they put one forward.

    Second, if the House confirms its confidence in this government I will then hold meetings with my colleagues, our Confidence & Supply partner the DUP and senior parliamentarians from across the House to identify what would be required to secure the backing of the House.

    The government will approach these meetings in a constructive spirit, but given the urgent need to make progress, we must focus on ideas that are genuinely negotiable and have sufficient support in this House.

    Third, if these meetings yield such ideas, the Government will then explore them with the European Union.

    Mr Speaker I want to end by offering two reassurances.

    The first is to those who fear that the government’s strategy is to run down the clock to 29th March (Britain’s exit date from the EU).

    That is not our strategy. I have always believed that the best way forward is to leave in an orderly way with a good deal and have devoted much of the last two years negotiating such a deal.

    As you confirmed Mr Speaker, the amendment to the business motion tabled last week by my Right Honorable and Learned Friend the Member for Beaconsfield (Dominic Grieve) is not legally binding, but the government respects the will of the House.

    We will therefore make a statement about the way forward and table an amendable motion by Monday.

    The second reassurance is to the British people, who voted to leave the European Union in the referendum two and a half years ago.

    I became Prime Minister immediately after that referendum. I believe it is my duty to deliver on their instruction and I intend to do so.

    Mr Speaker, every day that passes without this issue being resolved means more uncertainty, more bitterness and more rancor.

    The government has heard what the House has said tonight, but I ask Members on all sides of the House to listen to the British people, who want this issue settled, and to work with the government to do just that.”

    ECB Draghi: Eurozone economy weakening more than expected

      Euro is apparently knocked down by ECB President Mario Draghi’s downbeat comments. He told the European Parliament today that the Eurozone economy is weakening more than expected.

      Thus, “a significant amount of monetary policy stimulus is still needed to support the further build-up of domestic price pressures and headline inflation developments over the medium term,”

      Draghi added that “Our forward guidance on the key ECB interest rates, reinforced by the reinvestments of the sizeable stock of assets we have acquired, continues to provide the necessary degree of monetary accommodation.”

      Empire State manufacturing dropped to lowest well over a year

        Empire State manufacturing index dropped sharply to 3.9 in January, down from 10.9, and missed expectation of 11.6. That’s also the lowest level in “well over a year” since mid-2017. Also, the headline index has already fallen a cumulative 18 pts since November. Additionally, firms were “less optimistic about the six-month outlook than in recent months.”The index for future business conditions fell thirteen points to 17.8, and the indexes for future new orders and shipments also declined.

        Full release here.

        Also from the US, in December, headline PPI dropped -0.2% mom rose 2.5% yoy, versus expectation of 0.0% mom, 2.5% yoy. PPI core dropped -0.1% om, rose 2.7%, versus expectation of 0.2% mom, 2.7% yoy.

        Full PPI release here.

        Into US session: Risk appetite fades quickly, Investors turn cautious

          Risk appetite had a brief come back in Asia earlier today, after China pledges to strive to have a good start in 2019. But sentiments turned cautious in European session, ahead of the Brexit meaningful vote in UK commons. Sterling is clearly paring some gains because of that. On the other hand, Euro is weighed down by recession worries on Germany. The country reported annual growth of 1.5% in 2018, slowest since 2013. And there is risk of technical recession in Q3 and Q4 of last year.

          For now, Canadian Dollar is the strongest one for today so far, followed by Dollar. Swiss Franc is the weakest one, followed by Euro. Markets could turn more cautious ahead of the Brexit vote. There is no exact time set, but it’s believed to be somewhere between 1900-2100 GMT.

          In Europe, at the time of writing:

          • FTSE is down -0.05%
          • DAX is down -0.30%
          • CAC is down -0.07%
          • German 10-year yield is down -0.0223 at 0.209

          Earlier in Asia:

          • Nikkei rose 0.96%
          • Hong Kong HSI rose 2.02%
          • China Shanghai SSE rose 1.36%
          • Singapore Strati Times rose 1.22%
          • Japan 10 year JGB yield dropped -0.0123 to 0.013

          UK May pledges to respond to Brexit vote results quickly

            UK Prime Minister Theresa May’s spokesman reiterated the stance that “the prime minister said the government is the servant of the people and she believes passionately that we must deliver on the result of the 2016 referendum”

            And, “she added that after the vote has taken place, she would respond quickly to the result.”

            EU Centeno: Anything is better than a no-deal Brexit

              Eurogroup head Mario Centeno tries to sound softer on EU stance on Brexit agreement today. He indicated that should the deal is voted down by UK Parliament today, there are room for more talks and adjustments to avoid a no-deal Brexit.

              He said “we will see the result (of the vote) today and we can adjust our trajectory”. And, “we can open all the dossiers … We need to take informed decisions with total calm and avoid a no-deal exit. Practically anything is better than a no-deal exit.”

              ECB Draghi: Euro produced two decades of price stability

                In a speech titled “20th anniversary of the euro”, ECB President Mario Draghi hailed that with the Single Market, ” we have a powerful engine of sustainable growth to underpin our living standards”. And the Euro has “safeguarded the integrity of the Single Market.”

                In addition, he said euro has “produced two decades of price stability also in countries where this was a long lost memory.” And that “fostered people’s confidence”, with such ” firms invest and create new jobs.”

                Draghi also said “today most challenges are global and can be addressed only together”. Such  “togetherness” magnifies the ability of individual countries to retain the sovereignty over the relevant matters. And, together “we have a voice in the regulation of international financial market”.

                Draghi’s full speech.

                German economy grew 1.5% in 2018, slowest since 2013

                  The German Federal Statistical Office said the German economy grew 1.5% in 2018 as a whole. And that was above the 1.2% average growth rate of the last 10 years. It’s the ninth year of growth in a row. But Destatis noted that “growth has lost momentum”. German economy grew 2.2% in both 2017 and 2016, and 1.7% in 2015. And the pace was slowest since 2013.

                  Positive contributions came mainly from domestic demand. Household final consumption expenditure rose 1.0%. Government final consumption expenditure rose 1.1%. But both were notably slower than growth rate back in the past three years. Exports grew 2.7% while imports grew 3.4%. Full release here.

                  The Economy Ministry said the slowdown was due to weaker global economy, car industry’s sales problem, outbreak of flu and strikes. It’s optimistic that the economy will likely expand at the start of 2019. However, Euro drops notably today on worries that Germany was in a technical recession with contraction in last Q3 and Q4

                  Asian update: Sterling strong ahead of Brexit vote, Yen soft as China lifts stocks

                    Risk sentiments are having an about turn after China pledges to work on a strong start in 2019. The rebound in is so far more than enough to reverse yesterday’s selloff after ugly Chinese trade data. In the background, there is optimism of a deal between US and China to resolve the trade conflicts. Trump also reiterated yesterday again that “we’re going very well with China” and “we are going to able to do a deal”.

                    In the currency markets, Yen is the weakest one for today so far, followed by Swiss Franc and then Dollar. New Zealand Dollar leads commodity currencies higher. But for the week, Sterling is the strongest one after yesterday’s surge. All eyes will be on the Brexit meaningful vote today, and the subsequent actions after the deal is defeated in the Commons.

                    At the time of writing:

                    • Nikkei is up 0.9%
                    • Hong Kong HSI is up 1.63%
                    • Shanghai SSE is up 0.90%
                    • Singapore Strait Times is up 1.31%
                    • 10 year JGB yield is down -0.0128 at 0.013, staying positive

                    Overnight:

                    • DOW dropped -0.36%
                    • S&P 500 dropped -0.53%
                    • NASDAQ dropped -0.94%
                    • 10-year yield rose 0.009 to 2.710
                    • 30-year yield rose 0.023 to 3.060

                    US yield curve remains inverted between 1-year and 5-year. But it’s flattened much in the region. Also, strength is seen at the long end, with 30-year yield keeping 3% handle. Developments are so far positive.

                    China pledges to strive for good start in Q1

                      Stocks in Asia surge on hope that China would launch more stimulus measures to support the slowing economy. Chinese Premier Li Keqiang pledged to work to give the economy a strong start to achieve 2019 economic targets. There is no detail on the plan so far.

                      Li was quoted by State TV saying “we should strive for a good start in the first quarter to create conditions for completing the key full-year development targets and tasks.” And, “our country’s development environment is becoming more complex this year, there are more difficulties and challenges and the downward pressure on the economy is increasing,”

                      It’s reported that the Chinese government is planning to lower growth target to 6-6.5%, down from expected 6.6% in 2018.

                      May could force a second vote with EU concessions, if the Brexit deal is defeated today

                        The highly anticipated meaningful Brexit vote in the UK Commons will take place today. There is no exact time set, but it’s believed to be somewhere between 1900-2100 GMT.

                        Facing a lot of criticisms, Prime Minister Theresa May urged “all sides” to give her Brexit deal a “second look” in the Commons yesterday. She added that “No it is not perfect. And yes it is a compromise.” But “I say we should deliver for the British people and get on with building a brighter future for our country by backing this deal tomorrow.”

                        Separately, it’s reported that May told Tories in a private meeting to focus on two things, “we have to deliver Brexit … and two that we’ve got to keep Jeremy Corbyn as far away from Number 10 as possible.”

                        While the deal is widely expected to be voted down, May could force a second vote after the defeat. It’s reported that German Chancellor Angela Merkel is offering last-minute help to push for more EU concessions if the current deal is rejected. The concessions could include convincing Irish Prime Minister Leo Varadkar to agree to an end date to the so-called Irish backstop.

                        Fed Clarida: Fed to decide on interest rate on meeting by meeting basis

                          Fed Vice Chair Richard Clarida reiterated Fed should take a “patient” stance in 2019 and decide on interest rates on a “meeting by meeting” basis.

                          He added that “a lot has really happened since the first week of December.” And, “we will look in particular at global developments and some of the global data that has been softening.”

                          Though, he didn’t see the the global slowdown as “severe” for now. And he doesn’t see a recession “on the horizon”.

                          Sterling surges broadly as UK PM May delivers uninspiring statement in Commons on Brexit

                            Sterling overtakes Yen as the strongest major currency for today for now. Renewed buying emerges as UK Prime Minster Theresa May delivers her uninspiring statement in the Commons.

                            Technically, GBP/USD hits as high as 1.2930 so far. Rebound from 1.2391 is on track to 1.3174 resistance, which is close to 38.2% retracement of 1.4376 to 1.2391 at 1.3149.

                            EUR/GBP dives to as low as 0.8875. We now consider 0.8927 support firmly broken. And EUR/GBP is on track to 61.8% retracement of 0.8655 to 0.9101 at 0.8825 and below.

                            GBP/JPY, however, despite breaching 139.88 resistance to 140.05, it couldn’t sustain above this resistance yet. We’ll holding on to the expectation that upside of the rebound from 131.51 should be limited by 139.88 and bring reversal. Break of 137.35 minor support will turn bias to the downside for 131.51.

                            UK PM May gives statement in parliament on Brexit, live stream

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                              Trump doing well with China, rejects Republican Graham’s deal to reopen government

                                Trump sounded upbeat on trade negotiation with China today. He told reporters at the White House that “we’re doing very well with China”. And, “I think that we are going to be able to do a deal with China… China wants to negotiate”.

                                On the other hand, Trump rejected fellow Republican’ Lindsey Graham’s proposal to sign a stopgap spending bill to buy more time for talks on the border wall. Trump said, “I did reject it… I’m not interested. I want to get it solved. I don’t want to just delay it. I want to get it solved”.

                                US government shutdown is now in the record fourth week as Trumps insists on demanding the funding for border wall.

                                Conservative Whip Johnson quits for his objection to May’s Brexit deal

                                  Conservative Whip Gareth Johnson announced to resign from this role of discipline enforcer just ahead of tomorrow’s crucial Brexit deal vote.

                                  Johnson said “over the last few weeks, I have tried to reconcile my duties as a Whip to assist the Government to implement the European Withdrawal Agreement, with my own personal objection to the agreement”.

                                  He added that “I have concluded that I cannot, in all conscience, support the Government’s position when it is clear this deal would be detrimental to our nation’s interests.”

                                  Into US session: Yen and Swiss Franc Strongest, Aussie Weakest on China worries

                                    Entering into US session, Yen is the strongest one for today followed by Swiss Franc. On the other hand, Australian Dollar leads other commodity currencies lower on risk aversion. The main theme for today is further evidence of slowdown in China. Trade balance data showed both imports and expects contracted in the fastest pace since 2016 in December.

                                    On the other hand, Brexit is another major theme. Ahead of tomorrow’s vote in the parliament, UK Prime Minister Theresa May stepped her rhetorics. She warned that there are some MPs who wish to delay or even stop Brexit. And she urged MPs to vote to deliver what people decided in the referendum back in 2016. EU sent a “reassurance” letter to May today, pledging to work on a post-Brexti agreement by end of 2020 deadline to avoid triggering the backstop “in the most solemn manner”. But it’s unsure how such assurances could change the mind of those who already got a position. That is, those who believed no-deal Brexit is closest to what people want, and those who want no Brexit at all.

                                    In European markets, currently:

                                    • FTSE is down -0.86%
                                    • DAX is down -0.59%
                                    • CAC is down -0.72%
                                    • German 10 year yield is down -0.0252 at 0.215

                                    Earlier in Asia:

                                    • Hong Kong HSI dropped -1.38%
                                    • China Shanghai SSE dropped -0.71%
                                    • Singapore Strait Times dropped -0.79%
                                    • Japan was on holiday

                                    Juncker and Tusk: EU commits in solemn manner to avoid triggering Irish backstop

                                      European Commission President Jean-Claude Juncker and European Council President Donald Tusk sent a joint letter to UK Prime Minister Theresa May. That’s for hoping to provide the "assurances" to help May get the agreed Brexit deal through the UK Parliament tomorrow.

                                      In short, Juncker and Tusk pledged to try to reach the agreement regarding post-Brexit EU-UK relationship by the end of next year so as to avoid using the Irish backstop. They also emphasized that a commitment to speedy trade deal made by EU leaders had “legal value” which committed the Union “in the most solemn manner”.

                                      If the target date couldn’t be met, UK will have an option to extend a status-quo transition period, also for avoiding to trigger the backstop. They also pledged that “If the backstop were nevertheless to be triggered, it would only apply temporarily, unless and until it is superseded by a subsequent agreement that ensures that a hard border is avoided.” 

                                      Below is the full letter:

                                      Dear Prime Minister,

                                      Thank you for your letter of 14 January 2019.

                                      As you are well aware, we regret but respect the decision of the United Kingdom to leave the European Union. We also consider that Brexit is a source of uncertainty and disruption. In these challenging times, we therefore share with you the determination to create as much certainty and clarity as possible for citizens and companies in a situation where a Member State leaves the European Union after more than four decades of closest economic and political integration. That is why the Withdrawal Agreement that you and the Leaders of the 27 EU Member States agreed after long negotiations is so important. It represents a fair compromise and aims to ensure an orderly withdrawal of the United Kingdom from the European Union, thereby limiting the negative consequences of Brexit. That is also why we wish to establish as close as possible a relationship with the United Kingdom in the future, building on the Political Declaration, which the Leaders of the 27 EU Member States agreed with you. It is also why we want negotiations to this effect to start as soon as possible after the withdrawal of the United Kingdom from the European Union.

                                      As you know, we are not in a position to agree to anything that changes or is inconsistent with the Withdrawal Agreement, but against this background, and in order to facilitate the next steps of the process, we are happy to confirm, on behalf of the two EU Institutions we represent, our understanding of the following points within our respective fields of responsibility.

                                      A. As regards the President of the European Council:

                                      On the 13 December, the European Council (Article 50) decided on a number of additional assurances, in particular as regards its firm commitment to work speedily on a subsequent agreement that establishes by 31 December 2020 alternative arrangements, so that the backstop will not need to be triggered.

                                      The European Council also said that, if the backstop were nevertheless to be triggered, it would only apply temporarily, unless and until it is superseded by a subsequent agreement that ensures that a hard border is avoided, and that the European Union, in such a case, would use its best endeavors to negotiate and conclude expeditiously a subsequent agreement that would replace the backstop, and would expect the same of the United Kingdom, so that the backstop would only be in place for as long as strictly necessary.

                                      In this context, it can be stated that European Council conclusions have a legal value in the Union commensurate to the authority of the European Council under the Treaties to define directions and priorities for the European Union at the highest level and, in the specific context of withdrawal, to establish, in the form of guidelines, its framework. They may commit the European Union in the most solemn manner. European Council conclusions therefore constitute part of the context in which an international agreement, such as the Withdrawal Agreement, will be interpreted.

                                      As for the link between the Withdrawal Agreement and the Political Declaration, to which you make reference in your letter, it can be made clear that these two documents, while being of a different nature, are part of the same negotiated package. In order to underline the close relationship between the two texts, they can be published side by side in the Official Journal in a manner reflecting the link between the two as provided for in Article 50 of the Treaty on European Union (TEU).

                                      B. As regards the President of the European Commission:

                                      The Political Declaration agreed at the November Special European Council (Article 50) describes a future relationship of unprecedented depth and breadth, reflecting the continuing strength of our shared values and interests. The Withdrawal Agreement and the Political Declaration represent a fair balance of European Union and United Kingdom interests. They will ensure a smooth withdrawal and a strong future relationship in the interests of all our citizens.

                                      As the European Council has already stated, it will embark on preparations for a future partnership with the United Kingdom immediately after signature of the Withdrawal Agreement. As regards the European Commission, we will set up the negotiating structure for these negotiations directly after signature to ensure that formal negotiations can start as soon as possible after the withdrawal of the United Kingdom, having in mind the shared ambition of the European Union and the United Kingdom to have the future relationship in place by the end of the transition. Should national ratifications be pending at that moment, the Commission is ready to propose provisional application of relevant parts of the future relationship, in line with the legal frameworks that apply and existing practice. The Commission is also ready to engage with you on a work program as soon as the United Kingdom Parliament has signaled its agreement in principle to the Withdrawal Agreement and the European Parliament has approved it.

                                      There is an important link between the Withdrawal Agreement and the Political Declaration, reflecting Article 50 of the Treaty on European Union. As stated in Article 184 of the Withdrawal Agreement and reflected also in Paragraph 138 of the Political Declaration, the European Union and the United Kingdom have committed to use best endeavors, in good faith and in full respect of their respective legal orders, to take necessary steps to negotiate expeditiously the agreements governing their future relationship referred to in the Political Declaration.

                                      In light of your letter, the European Commission would like to make the following clarifications with regard to the backstop:

                                      The Withdrawal Agreement including the Protocol on Ireland/Northern Ireland embodies the shared commitment by the European Union and the United Kingdom to address the unique circumstances on the island of Ireland as part of ensuring the orderly withdrawal of the United Kingdom from the European Union. The Commission can confirm that, just like the United Kingdom, the European Union does not wish to see the backstop enter into force. Were it to do so, it would represent a suboptimal trading arrangement for both sides. The Commission can also confirm the European Union’s determination to replace the backstop solution on Northern Ireland by a subsequent agreement that would ensure the absence of a hard border on the island of Ireland on a permanent footing.

                                      The European Commission can also confirm our shared understanding that the Withdrawal Agreement and the Protocol on Ireland/Northern Ireland:

                                      – Do not affect or supersede the provisions of the Good Friday or Belfast Agreement of 10 April 1998 in any way whatsoever; they do not alter in any way the arrangements under Strand II of the 1998 Agreement in particular, whereby areas of North-South cooperation in areas within their respective competences are matters for the Northern Ireland Executive and Government of Ireland to determine;

                                      – Do not extend regulatory alignment with European Union law in Northern Ireland beyond what is strictly necessary to avoid a hard border on the island of Ireland and protect the 1998 Agreement; the Withdrawal Agreement is also clear that any new act that the European Union proposes should be added to the Protocol will require the agreement of the United Kingdom in the Joint Committee;

                                      – Do not prevent the United Kingdom from facilitating, as part of its delegation, the participation of Northern Ireland Executive representatives in the Joint Committee, the Committee on issues related to the implementation of the Protocol on Ireland/Northern Ireland, or the joint consultative working group, in matters pertaining directly to Northern Ireland.

                                      The European Commission also shares your intentions for the future relationship to be in place as quickly as possible. Given our joint commitment to using best endeavors to conclude before the end of 2020 a subsequent agreement, which supersedes the Protocol in whole or in part, the Commission is determined to give priority in our work program to the discussion of proposals that might replace the backstop with alternative arrangements. In this context, facilitative arrangements and technologies will be considered. Any arrangements which supersede the Protocol are not required to replicate its provisions in any respect, provided that the underlying objectives continue to be met.

                                      Should the parties need more time to negotiate the subsequent agreement, they could decide to extend the transition period, as foreseen in the Withdrawal Agreement. In that case, the Commission is committed to redouble its efforts and expects the same redoubled efforts from your negotiators, with the aim of concluding a subsequent agreement very rapidly. Were the backstop to enter into force in whole or in part, it is intended to apply only temporarily, unless and until it is superseded by a subsequent agreement. The Commission is committed to providing the necessary political impetus and resources to help achieving the objective of making this period as short as possible. To this end, following the withdrawal of the United Kingdom, and until a subsequent agreement is concluded, the Commission will support making best use of the high level conference foreseen in the Political Declaration to meet at least every six months to take stock of progress and agree the appropriate actions to move forward.

                                      Finally, in response to your concern about the timetable, we would like to make it clear that both of us will be prepared to sign the Withdrawal Agreement as soon as the meaningful vote has passed in the United Kingdom Parliament. This will allow preparations for the future partnership with the United Kingdom immediately thereafter to ensure that negotiations can start as soon as possible after the withdrawal of the United Kingdom from the European Union.

                                      Yours sincerely,

                                      Donald Tusk, Jean-Claude Juncker

                                      UK Fox: No-deal Brexit is not suicide, but no Brexit is unrecoverable political disaster

                                        UK International Trade Minister Liam Fox emphasis today that ‘the government will want to leave with a deal but the government will want to prepare for no deal if it’s impossible to get any agreement through the House of Commons. That would be the default policy.” He added that “I don’t regard no deal as national suicide. I think that no deal would damage our economy but I think it’s survivable. I think no Brexit, politically, is a disaster from which we might not recover.”

                                        Separately, RTE News reported the EU is going to issue a letter to the UK today, with a series of reassurances on the Irish backstop. EU might reiterate that the backstop itself is not the preferred solution. But it does help avoiding a hard border. Also, EU will emphasize there is no attempt to “annex” Northern Ireland. But EU will also insist that there will be no renegotiation of the Brexit deal, including the Irish backstop. It’s over all, hardly anything new. UK Prime Minister Theresa May is set to make a statement at 1530GMT regarding the so called new assurances from the EU.

                                        China Dec trade balance: Massive -35.8% yoy fall in US imports; exports and imports contracted most since 2016

                                          China posted a set of very disappointing trade data today. Exports and imports posted biggest contraction since 2016. More importantly, imports from the US dropped a massive -35.8% yoy in the month. But for the year, trade surplus with the US hit a record high.

                                          In USD terms in December,

                                          • Trade surplus widened to USD 57.1B, above expectation of USD 51.6B.
                                          • However, exports dropped -4.4% yoy to USD 221.3B.
                                          • Imports dropped -7.6% yoy to USD 164.2B.
                                          • Both imports and exports suffered the steepest decline since 2016.

                                          Staying in December,

                                          • With the US, export dropped -3.5% yoy to USD 40.3B, imports dropped a massive -35.8% yoy to USD 10.4B.
                                          • With EU, exports dropped -0.3% yoy to USD 37.6B, imports dropped -2.7% yoy to USD 22.5B.
                                          • With Australia, exports dropped -5.2% yoy to USD 4.0B, imports dropped -3.4% yoy to USD 7.3B.

                                          For the year as a whole,

                                          • With the US, exports rose 11.3% yoy to USD 478.3B, imports rose just 0.7% yoy to USD 155.1B.
                                          • Trade surplus with the US jumped 17.2% yoy to USD 323.2B, highest on record.
                                          • With EU, exports 9.8% yoy to USD 408.6B, imports rose 11.7% yoy to USD 273.4B.
                                          • Trade surplus with EU rose 6.2% yoy to USD 135.1B.
                                          • With Australia, exports rose 14.2% yoy to USD 47.3B, imports rose 11.2% to 105.45B.
                                          • Trade deficit with Australia rose 8.9% yoy to USD 58.1B.

                                          Link to China customs department data, in simplified Chinese.