Greetings,
The United States: The US is struggling with low labor turnover, which is a significant contributor to the sluggish wage growth.
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.
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.
Asia: People across Asia are uneasy about the US withdrawing from the international agreements.
Equity Markets: The market is encouraging companies to increase CapEx, as Goldman’s CapEx/R&D index outperforms.
Some analysts point to higher sales growth as a leading indicator for CapEx.
Credit: CLOs have cut their liability costs significantly this year by refinancing.
Food for Thought: Largest electric car manufacturers.
Edited by Joseph N Cohen
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Thanks to Josh Marte (@joshdigga), Matt Garrett (@MattGarrett3), Joseph Cohen (@josephncohen), Ycharts.com, S&P Global, and Moody’s Investors Service for helping with the research for the Daily Shot.
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