The Daily Shot Brief – May 2nd, 2018




The United States: Will the new tax law curtail foreign investment by raising taxes on foreign-owned US companies? (BEAT = base erosion and anti-abuse tax.)

Source: Moody’s Investors Service


Equity Markets: The correlation between bond yields and stocks has broken down. This is a problem for many portfolios that hold both asset classes.

Source: Bloomberg


Commodities: As gasoline prices spike, Brazil is diverting more of its sugarcane to ethanol. So far, that hasn’t helped sugar prices.

Source: BMI Research


Credit: This chart shows the use of proceeds from leveraged finance debt issuance this year.

Source: Moody’s Investors Service


Emerging Markets: Significant changes in EM FX reserves can tell us if governments are actively weakening their currencies.

Source: IIF


Rates: Treasury yields continue to diverge from the copper/gold ratio.

Source: Bloomberg


China: Investors are less enthusiastic about Hong Kong-listed tech IPOs.

Source:, h/t Paul Menestrier; Read full article


United Kingdom: Here is the UK’s credit impulse.

Source: Pantheon Macroeconomics


Food for Thought: Data on teachers’ compensation

Source: Deutsche Bank Research



Edited by Joseph N Cohen

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Thanks to Josh Marte (@joshdigga), Matt Garrett (@MattGarrett3), Joseph Cohen (@josephncohen),, S&P Global, and Moody’s Investors Service for helping with the research for the Daily Shot.

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