The Daily Shot Brief – October 26th, 2017

Greetings,

 

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.

Source: @PredictIt

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.

Source: Capital Economics

 

The Eurozone: Euro area bankers expect a pickup in loan demand.

Source: @MxSba; Read full article

 

Emerging Markets: South Africa is turning into a “banana republic,” as the government’s debt forecasts unexpectedly shot higher.

Source: @bpolitics; Read full article

 

Equity Markets: ETF inflows have been one of the reasons for the persistent market rally.

Source: Credit Suisse

 

Credit: High-yield spreads have diverged from a corporate bank lending index shown below (loan demand minus tightening lending standards).

Source: Variant Perception; Read full article

 

Bitcoin: We’ve had a few cryptocurrency hedge funds launching this year.

Source: @acemaxx, @technology, @josephncohen; Read full article

 

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.

Source: @valuewalk, @josephncohen

 


Food for Thought: The racial/ethnic makeup of MLB players over time.

Source: @voxdotcom; Read full article

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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