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This is a syndicated repost courtesy of NorthmanTrader. To view original, click here. Reposted with permission.

The fight for containment is on and so is the effort at damage control.

Liquidity moves markets!

Follow the money. Find the profits! 

Chinese markets are set to open again tomorrow having been closed for days. As has become common practice in our new normal any sign of trouble and central banks stop in to support markets.

Hence no surprise that now the CBOC is signaling sizable liquidity injections for Monday:

Sven Henrich


Central bank to the rescue: $174B in artificial liquidity on Monday 

Eunice Yoon


Replying to @onlyyoontv

People’s Bank of #China will supply RMB1.2trln ($174bln) to money markets Mon, Feb 3, bank says. Move to ensure liquidity “reasonably ample” during #virus, will use reverse repos. Adds overall liquidity in system RMB900bln more than last year (i.e., investors need not panic! 😓)

107 people are talking about this
Also no surprise ahead of market open: A communication effort to shore up confidence and present any news as good news:

Global Times


Good news! 37 patients were discharged from ‘s Jinyintan on Sunday, the highest daily discharge since the pneumonia outbreak began: media reports

View image on Twitter
94 people are talking about this

Whether these efforts of containment in markets will be enough remains to be seen.

Fact is the virus continues to spread and appears far from contained at this stage:

And the death count is increasing:

The infection count has now reached 14,628 at the time of this writing and this count is assured to continue to increase. The infection count chart looks precariously like it may accelerate further:

So yes, real good news of containment is needed and urgently so as the economic damage will deepen with each passing week.

It’s been said that life imitates art and currently the concern is that infections will keep spreading throughout the world. The challenges of containing a viral outbreak communicated by air have been well imagined in a 2015 film:

Now that the first coronavirus death outside of China has been reported the ante for containment has once again been raised.

Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

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