The United States: How much of the recent corporate tax reductions will go to the American worker? Estimates vary dramatically.
Here is how Morgan Stanley sees the allocation of gains from the tax cuts. Wall Steet is enormously grateful to Uncle Sam this year.
Equity Markets: The S&P 500 implied volatility remains elevated relative to corporate credit spreads.
Credit: Short interest is building in high-yield bond ETFs.
Eurozone: There hasn’t been much concern in the market about the Italian elections. Here is the 1-week EUR/USD risk reversal.
China: Higher rates last year had put some pressure on commodity-focused sectors (the “old economy”). The “new economy” industries, however, did better. This chart shows the economic “rebalancing” taking place in China.
Emerging Markets: Brazil’s output gap is still quite large.
Food for Thought: One in 14 US women smokes while pregnant.
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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