Jan 3, 2020

Global manufacturing pauses its rebound

Dion Rabouin, author of Markets

Poto: Jetta Productions Inc/Getty Images

After a modest recovery over the past four months, manufacturing reports produced by IHS Markit from around the world almost all worsened in December, showing that the sector continues to face global challenges.

The latest: The U.S. saw little change from November to December, remaining just above contraction with a reading of 50.1, but the eurozone looked tortured with both Italy and the Netherlands posting their worst PMI reports in 80 months.

  • The eurozone as a bloc recorded a PMI of 46.3, suggesting it's still in the midst of its manufacturing recession.
  • Of the more than 40 markets IHS Markit covers, only Russia and India saw improvements in their PMI reports.

What it means: "While we are not sounding any alarms, today’s data tells us that investors may have been a bit premature in pricing in a global economic recovery," Emily Roland, co-chief investment strategist at John Hancock Investment Management, tells Axios.

Go deeper: Midwestern manufacturing improved in December but is still contracting

Go deeper

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Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

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Trump to end Hong Kong’s special trade status

President Trump. Photo: Win McNamee/Getty Images

President Trump announced on Friday that the U.S. would be fundamentally changing longstanding policies toward Hong Kong as a result of Chinese encroachment on the city's autonomy.

Why it matters: Trump said he would be effectively ending the special trade status that has allowed Hong Kong to flourish as a gateway to the Chinese market. That leaves an uncertain future for businesses that operate in Hong Kong, not to mention the city's 7 million residents, and could be met with reprisals from Beijing.