The Daily Shot Brief – February 5th, 2021



Equities: Who are the largest sellers and buyers of order flow?

Source: @WSJ Read full article


Alternatives: Which sectors saw the most private equity deals last year?

Source: S&P Global Market Intelligence


Rates: The aggregate duration of fixed-income markets keeps climbing, which will exacerbate losses if rates rise suddenly.

Source: Hugo Ste-Marie, Portfolio & Quantitative Strategy Global Equity Research, Scotia Capital


United Kingdom: The BoE told banks they have six months to get ready for negative rates, which are probably not coming.

Source: Reuters Read full article


Market-based probability of negative rates collapsed.

Source: Pantheon Macroeconomics


United States: Unit labor costs jumped, pointing to higher inflation ahead.

Source: Pantheon Macroeconomics


However, this increase in labor costs is exaggerated. Here is a comment from Andrew Husby, Economist at Bloomberg LP.

 … unit labor costs likely exaggerate aggregate cost pressures for the same reason as the productivity statistics, namely the pandemic’s severe impact on select industries.

 It also overstates the total degree of cost pressures facing businesses, as unit non-labor payments, which account for subsidies like those provided by the Paycheck Protection Program, fell markedly in the fourth quarter (-6.3%) and for the year as a whole (-4.1%).


Food For Thought: Super Bowl halftime performers:

Source: Morning Consult Read full article

Edited by Devon Lall

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