Greetings, The United States: The employment cost index vs. the prime-age non-employment rate (a variation of the Phillips Curve): The Eurozone: Investor sentiment continues to deteriorate. China: The widening spread between Chinese and US bond yields should provide some support for the renminbi. Credit: Investors can’t get enough of muni funds. Food …
The Daily Shot Brief – August 5th, 2019
Greetings, The United States: The two charts below show the evolution of US tariffs. The Eurozone: The currency bloc’s producer prices appear to be headed for deflation. China: China was already facing capital outflows. The renminbi’s weakening is expected to accelerate this trend. Global Developments: There is more downside to global trade …
The Daily Shot Brief – August 1st, 2019
Greetings, The United States: This chart shows the spread between the ISM orders and inventories (a forward-looking indicator) vs. the ISM composite index. The Eurozone: Businesses increasingly expect a slowdown in hiring. China: Government bond yields are falling. Rates: The shift into bond funds from equity funds continues. The net new …
The Daily Shot Brief – August 1st, 2019
Greetings, The United States: The recent improvements in economic indicators suggest that deeper rate cuts are unlikely. The Eurozone: Ireland is getting hit by the combination of Europe’s recent industrial weakness and the Brexit uncertainty. China: Hong Kong’s Q2 GDP growth was weaker than expected. Rates: Cutting rates as an “insurance” …