The United States: While household leverage (debt-to-income) is low compared to pre-recession levels, we should pay more attention to financial obligations, which include rent. The green line below shows that households’ total financial liabilities are now much larger relative to debt obligations.
United Kingdom: Credit quality is declining for UK consumer services companies.
China: Producer price inflation has moved deeper into negative territory, which is pressuring industrial profits.
Energy: US crack spreads have widened recently, boosting refinery margins.
Rates: The Fed’s bill purchases (boosting reserves) are a longer-term “replacement” for the repo financing.
Food for Thought: Manhattan housing market:
Edited by Daniel Moskovits
To receive the Daily Shot Premium, you need to be a subscriber to The Wall Street Journal. The Daily Shot readers qualify for a special membership offer of $1 for 2 months and can join simply by clicking here.
If you are already a WSJ member, you can sign up for The Daily Shot at our Email Center by clicking here.
The Daily Shot Premium is also available online at DailyShotWSJ.com
If you have any issues at all, please contact a Customer Service representative by calling 1-800-JOURNAL (1-800-568-7625) or sending an email to firstname.lastname@example.org.
Contact the Daily Shot Editor: Editor@DailyShotLetter.com