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.)
Equity Markets: The correlation between bond yields and stocks has broken down. This is a problem for many portfolios that hold both asset classes.
Commodities: As gasoline prices spike, Brazil is diverting more of its sugarcane to ethanol. So far, that hasn’t helped sugar prices.
Credit: This chart shows the use of proceeds from leveraged finance debt issuance this year.
Emerging Markets: Significant changes in EM FX reserves can tell us if governments are actively weakening their currencies.
Rates: Treasury yields continue to diverge from the copper/gold ratio.
China: Investors are less enthusiastic about Hong Kong-listed tech IPOs.
United Kingdom: Here is the UK’s credit impulse.
Food for Thought: Data on teachers’ compensation
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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