The Daily Shot Brief – October 20th, 2017

Greetings,

 

The United States: Morgan Stanley is suggesting that slower declines in the velocity of money are pointing to higher inflation ahead. Perhaps. If the trend is due to a stronger GDP growth, higher inflation is indeed likely. However, the velocity of money trend has eased because the expansion in the money supply is slowing (second chart below)

Source: Morgan Stanley

 

The Eurozone: Just like in the US, European stock market volatility (both implied and historical) is hitting new lows.

Source: Bloomberg

 

China: This is the number of Chinese officials that have been under investigation for corruption.

Source: BMI Research

 

Equity Markets: Below we have the relative valuations of European, US, and Emerging Market equities.

Source: @IIF

 

United Kingdom: Household indebtedness and sagging real disposable income have been some of the reasons for softer retail sales.

Source: Moody’s Investors Service
Source: Moody’s Investors Service

 

Global Developments: Here are the trends in household debt as a percentage of disposable income for select economies (from Capital Economics).

Source: Capital Economics

 


Food for Thought: The digital divide between the older and the younger generations (by country).

Source: @OECDinnovation; Read full article

 

Have a great weekend!


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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