The United States: The growth in household wealth in the US has been extremely uneven. The best illustration of this trend is the difference between the median and the mean household net worth. Some economists suggest that the new tax bill will widen this gap further.
Equity Markets: Goldman’s “bad case” scenario has the 10yr Treasury yield climbing to 4.5%. That move, according to the bank, would translate into a 20% – 25% drop in stock prices.
Credit: Here is the Moody’s European covenant quality indicator (E-CQI) for sub-investment-grade bonds. Creditor protections continue to worsen.
Eurozone: Credit conditions in the Eurozone have improved markedly in recent months.
United Kingdom: The UK household sentiment remains below the levels we saw prior to the EU Referendum.
Emerging Markets: Given the declining inflation indicators in Brazil, will we see another central bank rate cut (SELIC target rate)?
Food for Thought: Corporate taxes across select economies, including subnational (state) taxes.
Edited by Joseph N Cohen
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