United States: Auto loan delinquencies have diverged from other consumer credit markets.
The velocity of money hit a multi-decade low. One way to think about this trend is that it takes an increasing amount of credit (including bank credit to the federal government) to generate the same amount of GDP.
The Eurozone: Germany’s political uncertainty increased substantially with AKK’s resignation.
The euro declined further.
China: China’s P2P lending activity continues to slow.
Energy: Fitch expects coal to remain key in Chinese power generation, as the sector ramps up excess capacity to meet power demand surges due to stimulus measures. Meanwhile, oil as a source of electricity generation is expected to decline substantially (0% by 2029).
Global Developments: The coronavirus scare impacted risk assets in different ways.
Food for Thought: The White House’s proposed budget:
Edited by Devon Lall
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