Fiscal stabilization package; Trade surplus; Philippines-PRC tensions; TSMC; Waltz to be National Security Advisor
Summary of today’s Essential Eight:
1. NPC approves fiscal stabilization package as propaganda touts confidence - Don’t call it stimulus. The package announced Friday to help with hidden local government debts should help stabilize local government finances, but it is not the stimulus many were hoping for. While this package along with what the government calls a “basket of incremental policies” should stabilize the economy for now, so far little they have done little to address the growing deflationary pressure, or the massive trade pressure Trump may unleash early next year. The positive energy propaganda work is intensifying, with front page commentaries in the November 11 and 12 People’s Daily talking up why people should be confident in the economy. Between the disappointing fiscal package and the concerns over Trump’s approach to the PRC, it will be a hard sell to get foreign investors to stick around in the Hong Kong and PRC markets.