Thread by @Trinhnomics

Good morning! Another beautiful & sunny day in Hong Kong - crispy & cool air! Can't say the same about macro & micro data in Asia. Yesterday we got bad data out of Japan & Thailand & downgrades by Singapore & Thailand (don't worry, more to come).

Cathay & Apple warn of earnings!

Nikkei 225 is having another meh day w/ markets open almost down 1% & Asian FX feeling blues vs USD. DXY even now higher at 99.2 with EUR at 1.08 & GBP 1.2996 & the USD continues to surge on fear of impact of #coronavirus

Not a rounding error 🦠😬🌄🌞🇭🇰

https://twitter.com/Trinhnomics/status/1228475166134374400?s=20

You know I have been going on & on about the real estate sector & something that markets don't look at enough. Why? Well, b/c for every small & medium enterprise not getting sales, there's a landlord. So? Either rent/sale price falls to help reduce costs or SMEs out of business.

Whenever you have a decline of earnings, it is a question of how long a company/household can survive w/ the same cost structure.

So to survive, u either take on more debt (higher costs) or reduce overhead (employees, rent, etc) or BOTH.

Evergrande said to slash price by 25% &

In Hong Kong, shops are banding together to ask landlord to reduce rent as they can't survive in a global city that has gone totally local (look at the # of tourists arriving). Moreover, even locals are going super local (staying at home) so therefore earnings are down so costs..

Daily #coronavirus update for 17 Feb 2020:

Confirmed cases to 72.436 or a 2.7% daily growth rate. Death rate higher at 5.5% (slowing from 6.3%) to 1,868 death.

Death/confirmed ratio RISING at 2.6% from 2.5% previous day & death/recovered slowed to 14.9% as recovered rising.