The United States: According to Steven Mnuchin, troubles at Boeing will shave off 0.5% from the 2020 GDP growth. While the Boeing situation is indeed troubling (charts below), it is highly unlikely that the company will have that much of an impact on the economy. But it does create a convenient explanation for slower growth in 2020.
The United Kingdom: The probability of a BoE rate cut jumped after Carney’s speech.
Asia-Pacific: The correlation of F/X reserves with currency moves is an indicator of currency intervention activity (or what some would call “manipulation”).
Energy: OPEC’s spare capacity is low, and any rebound in demand could challenge supply-side constraints. Moreover, there’s always the risk of an unplanned outage to nudge the oil market, according to BCA Research.
Credit: Energy firms are taking advantage of historically low debt yields.
Food for Thought: Audio vs. ebooks:
Edited by Devon Lall
To receive the Daily Shot Premium, you need to be a subscriber to The Wall Street Journal. The Daily Shot readers qualify for a special membership offer of $1 for 2 months and can join simply by clicking here.
If you are already a WSJ member, you can sign up for The Daily Shot at our Email Center by clicking here.
The Daily Shot Premium is also available online at DailyShotWSJ.com
If you have any issues at all, please contact a Customer Service representative by calling 1-800-JOURNAL (1-800-568-7625) or sending an email to email@example.com.
Contact the Daily Shot Editor: Editor@DailyShotLetter.com