Updates On China, The UK & Earnings

China gargantuan trade surplus won’t shrink until policymakers stimulate domestic demand. Yuan depreciation now risks capital flight. … In the UK, gilt yields have reached multi-year highs, raising the government’s borrowing costs to levels that might jeopardize its borrowing plans. … Joe has good news for US investors: If the upcoming Q4 earnings season follows the historical pattern, analysts’ already lofty earnings estimates are too low. Joe thinks S&P 500 companies could turn in aggregate y/y earnings growth as steep as 12%.