The Daily Shot Brief – November 6th, 2017

Greetings,

 

The United States: The US is struggling with low labor turnover, which is a significant contributor to the sluggish wage growth.

Source: Nomura North America Economics

And the reason for declining labor turnover is the aging corporate sector. Old US firms, many of which are heavily entrenched in their industry, increasingly dominate the economy.

Source: Nomura North America Economics

Nomura: – “The decline in dynamism reflects many disconcerting trends in the US economy, including reduced worker mobility, low entry rates of new firms and increased concentration across many industries. These trends are structural and are unlikely to reverse course soon. Moreover, these trends have played out over a number of decades.”

 

The Eurozone: German manufacturing orders have accelerated, exceeding expectations.

Source: Statistisches Bundesamt; Read full article

 

Asia: People across Asia are uneasy about the US withdrawing from the international agreements.

Source: @pewglobal, @josephncohen; Read full article

 

Equity Markets: The market is encouraging companies to increase CapEx, as Goldman’s CapEx/R&D index outperforms.

Source: WSJ.com, h/t Paul Menestrier; Read full article

Some analysts point to higher sales growth as a leading indicator for CapEx.

Source: Richardson GMP Team; Read full article

 

Credit: CLOs have cut their liability costs significantly this year by refinancing.

Source: @business, @josephncohen; Read full article

 


Food for Thought: Largest electric car manufacturers.

Source: BMO Wealth Management

Edited by Joseph N Cohen


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