Greetings,
The United States: This scatterplot shows US average hourly wages vs. the unemployment gap.
As wage growth improves, so should the core PCE inflation (the Fed’s preferred measure).
Here is Morgan Stanley’s core PCE forecast for next year.
Rates: Most of the increase in Treasury yields over the past 30 days has been due to rising term premium as opposed to risk neutral rates.
China: The rate differential between China and the US has been closing, which has been putting downward pressure on the yuan.
The Eurozone: Will faster wage growth boost inflation across the Eurozone?
Equities: Valuations have improved meaningfully this week. Here is the forward-looking P/E ratio (green).
Global Developments: Below is Oxford Economics’ estimates for the output gap in advanced economies.
Emerging Markets: This chart shows the minimum wage by country.
Food for Thought: Who supplies parts for Boeing 787 Dreamliner?
Edited by Joseph 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 support@wsj.com.
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
