The United States: Small banks anticipate increases in their mortgage business even as the industry braces for the possibility of lower loan volumes.
Equity Markets: More fund managers now want to see companies cut leverage. That’s why the market has been rewarding firms that have stronger balance sheets (second chart below).
According to Merrill Lynch, a record number of fund managers now say that “global corporate balance sheets are overleveraged.”
Rates: The divergence between Treasury yields and the copper-to-gold ratio keeps widening.
Energy Markets: This chart compares gasoline/diesel taxes across regions.
The Eurozone: It appears that Italy’s 5-Star Movement may form a coalition with a far-right party (League).
Food for Thought: The shifts in US population over the past year.
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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