The United States: This chart shows the difference between CEOs’ future expectations and their assessment of the present situation. The second chart has the same measure for the consumer.
China: The Caixin/Markit Composite PMI (manufacturing + services) is approaching 50 (business activity growth is stalling).
Europe: Finally, this chart shows government debt service burdens as a percentage of the GDP.
Equities: Analysts are still upbeat on corporate earnings.
Growth has been strong even without the impact of lower taxes.
But earnings growth is expected to return to more typical levels next year.
Credit: Corporate defaults slowed further during the last quarter. Are credit investors being lulled into complacency?
Emerging Markets: Markets are showing signs of improvement (although gains have been uneven). Here is Mexico’s stock index, for example.
Food for Thought: What are the betting markets telling us about the outcome of the US midterm elections (cents = % probability)?
Edited by Joseph Cohen
What We’re Reading: The Kobeissi Letter
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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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