- China added more credit last month than the equivalent of Swedish or Polish economic output, revving up growth and supporting prices but also fueling concerns about the sustainability of such a spree. Aggregate financing, the broadest measure of new credit, climbed to a record 3.74 trillion yuan ($545 billion) in January, exceeding the median estimate of 3 trillion yuan in a Bloomberg survey. New yuan loans rose to a one-year high of 2.03 trillion yuan, less than the 2.44 trillion yuan estimate.
- Producer price index rose 6.9 percent in January from a year earlier, compared with a median estimate of 6.5 percent in a Bloomberg survey and a 5.5 percent December gain. Consumer-price index climbed 2.5 percent, boosted by the week-long Lunar New Year holiday beginning in January this year, versus a 2.4 percent rise forecast by analysts. Producer prices for mining products surged 31 percent year-on-year while those for raw materials climbed 12.9 percent, the National Bureau of Statistics said Tuesday.
- India’s wholesale inflation surged more than estimated to the highest since July 2014, supporting the central bank’s shift to a "neutral" monetary stance. Wholesale prices rose 5.25 percent in January from a year earlier, the Commerce Ministry said in a statement on Tuesday. That’s faster than the 4.35 percent median estimate in a Bloomberg survey of 25 economists..
- European stocks edged higher, completing the longest streak of increases since October, as gains in automakers offset a drop in construction and materials stocks. The Stoxx Europe 600 Index closed up less than 0.1 percent. Carmakers climbed 1.1 percent, with Peugeot SA among the biggest advancers after the firm’s owner was said to be exploring an acquisition of General Motors Co.’s European business. The FTSE 250 Index of U.K. midcaps rose 0.2 percent to its sixth consecutive record close.
- OPEC Wins Plaudits for Oil Recovery, Yet Economy Lends a Hand. (video) OPEC may be getting all the credit for reviving the oil market, but it had a little help. While the Organization of Petroleum Exporting Countries did spur a 28 percent recovery late last year by announcing production cuts, supply isn’t the only factor buoying the market: demand repeatedly beat expectations in 2016, and is set to surprise again. Global oil consumption will surpass average growth rates for a third year in 2017 amid continued economic expansion in China and India, according to data from the International Energy Agency. With all the attention on OPEC, the role of demand in keeping crude prices above $50 a barrel has been overlooked, according to consultants Energy Aspects Ltd.
- Investors' Economic Optimism Surges to Level Not Seen Since 2011. (video) Investors haven’t been this optimistic on the global economy since 2011, joining small businesses in taking a glass-half-full outlook as a new administration takes over in Washington. A full 23 percent of investors expect an outright “boom,” according to a survey released Tuesday by Bank of America Merrill Lynch, while the number predicting negligible growth over the next 12 months has fallen by more than half to 43 percent. The optimism comes amid forecasts global growth will pick up and as Donald Trump promises to cut taxes, boost fiscal spending and loosen regulations in moves that could boost corporate earnings.
Wall Street Journal:
- Ditching Opel Is Next Step in GM CEO’s Profit Drive. Mary Barra, unlike many of her predecessors and industry peers, has prized profits over size.
- Trump Puts NATO Allies in the Crosshairs Over Military Spending. Germany, long criticized by U.S. administrations as a reluctant warrior, starts to ramp up its defense budget.
- Why Stop at Dodd-Frank? Some Want Trump’s Regulatory Overhaul to Go Further. Companies target long-contested auditor provision in the Sarbanes-Oxley Act.
- Here are 7 tech stocks that will benefit if Trump cuts tax on overseas profits, Goldman says.
- Fed Chair Yellen: 'Unwise' to wait too long to hike interest rates. (video)
- Surprise! Airlines are canceling fewer flights, losing fewer bags than they have in decades.
- Facebook(FB) is making its biggest push yet to grab ad dollars from TV.
- Brother Of Kim Jong Un Assassinated In Malaysia; US "Strong Believes" North Korea Behind The Murder.
- Russia "Secretly" Deploys Banned Cruise Missile In "Latest Challenge To Trump".
- What Catalyst Will Start The Next Bear Market: Here Is Wall Street's Response.
- "Euro May Already Be Lost" - Vice-Chairman Of EuroThinkTank Warns "No Way To Avert Break-Up".
- Russian Spy Ship Spotted Off US East Coast.
- America's CEOs Have Never Been More "Optimistic". (graph)
- Goldman(GS) Raises March Rate Hike Odds, Sees "Strong Support For Near-Term Policy Action".
- China Just Created A Record $540 Billion In Debt In One Month. (graph)
- Trump Responds To Flynn Resignation: "The Real Story" Here Are The Illegal Leaks.
- The Chart That Should Worry Janet Yellen The Most. (graph)
- US Producer Prices Spike Most Since September 2012 As Energy Costs Soar. (graph)