Greetings,
The United States: According to Moody’s, the new tax law “significantly reduces tax incentives of homeownership.” What will be the impact on the housing market?
Equity Markets: There are not many asset classes that could protect against market volatility. Even the traditional safe-haven assets such as the yen or gold are negatively correlated with VIX.
Emerging Markets: The EM high-yield bond downgrades once again overtake the upgrades.
The Eurozone: Will the Eurozone labor productivity accelerate as business investment strengthens?
China: Can Beijing keep its air pollution under control?
Cryptocurrency: The SEC appears to be digging into crypto hedge funds.
Credit: There is a great deal of high-yield debt that will need to be refinanced over the next few years. Corporate funding costs will rise substantially. Will more leveraged firms face the 30% (of ATI) tax deduction limitation once their interest expense jumps?
Food for Thought: Is sex with a robot considered cheating?
Edited by Joseph N Cohen
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Thanks to Josh Marte (@joshdigga), Matt Garrett (@MattGarrett3), Joseph Cohen (@josephncohen), Ycharts.com, S&P Global, and Moody’s Investors Service for helping with the research for the Daily Shot.
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