The United States: The headline CPI is expected to decelerate sharply next year as a result of lower oil prices and a stronger US dollar.
China: Business conditions have deteriorated.
The Eurozone: The selloff in China’s stock market does not bode well for the Eurozone’s carmakers.
Rates: Rather than relying on estimates of the “neutral” interest rate, should the Fed use alternative indicators (such as private residential investment)? If that’s the case, is the Fed being too aggressive in tightening policy?
Equities: Investors increasingly expect “value” stocks to outperform “growth” over the next twelve months.
Emerging Markets: The Philippine peso has been recovering since the start of October.
Food for Thought: The scatterplots below show the correlation between English proficiency and other factors such as internet security, tech manufacturing, etc. (by country). Note that correlation does not necessarily prove causality.
Edited by Joseph 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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