Greetings and Happy New Year,
United States: The betting markets are now predicting that Democrats will take control of the Senate after the Georgia races.
This was a surprise for the markets. The impact on equities is unclear as massive stimulus programs may offset higher corporate taxes. Stock futures are a bit softer in early trading. What is more certain is that a Democratic sweep would pressure Treasuries due to much higher issuance (to fund stimulus programs). Treasury yields climbed.
Will the Fed be forced to increase the pace of Treasury purchases to keep rising yields from choking off the recovery?
Europe: Will zero-rate mortgages spread beyond Denmark?
Asia-Pacific: South Korea’s population declined last year.
China: Where is Jack Ma?
Regulators may force Ant Group to share consumer data in an effort to “better control financial risk.”
Government pressure is weighing on Alibaba’s stock price.
Energy: Oil futures rose sharply as Saudi Arabia decides to cut production.
The Brent curve moved deeper into backwardation.
Food For Thought: Wealth growth vs. educational attainment:
Edited by Devon Lall
Contact the Daily Shot Editor: Editor@DailyShotLetter.com