The United States: There is still a great deal of speculation about who will be Trump’s pick for the next Fed chair. John Taylor’s odds have risen significantly in the betting markets.
This recent interview with John Taylor (just takes a few minutes) suggests that he will advocate for a higher natural rate. And that would result in a steeper/longer tightening cycle. Taylor’s nomination could, therefore, send some jitters through the markets.
The Eurozone: Euro area bankers expect a pickup in loan demand.
Emerging Markets: South Africa is turning into a “banana republic,” as the government’s debt forecasts unexpectedly shot higher.
Equity Markets: ETF inflows have been one of the reasons for the persistent market rally.
Credit: High-yield spreads have diverged from a corporate bank lending index shown below (loan demand minus tightening lending standards).
Bitcoin: We’ve had a few cryptocurrency hedge funds launching this year.
United Kingdom: The number of hedge fund startups in the UK has collapsed. Established asset management firms are loving this because they will be facing less competition in fundraising.
Food for Thought: The racial/ethnic makeup of MLB players over time.
Edited by Joseph N Cohen
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.
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.
We would also like to thank the Federal Reserve Bank of St. Louis for the incredible job they have done providing data and graphics to the public. Here is the credit and legal notice related to all FRED charts: FRED® Graphs ©Federal Reserve Bank of St. Louis. All rights reserved. All FRED® Graphs appear courtesy of Federal Reserve Bank of St. Louis. http://research.stlouisfed.org/fred2/
Contact the Daily Shot Editor: Editor@DailyShotLetter.com