The United States: Let’s begin with this chart of the 3M Corporation’s share price vs. the ISM manufacturing activity index. What is the market telling us?
Global Developments: Germany’s Rhine river water levels are at extreme lows, making it increasingly challenging to transport fuel into parts of Europe.
China: Fund flows into China have been resilient amid the EM rout. Will it persist given the tightening spreads between rates in China and the US.
The Eurozone: The Eurozone PMI:
Equities: The market punished companies that focus on CapEx/R&D in favor of firms known for share buybacks.
Credit: This scatterplot shows the percentage of downgrades vs. upgrades for companies in private equity funds’ portfolios. The size of the circles represents the upgrade/downgrade ratio.
Emerging Markets: The inflation-adjusted domestic credit contraction in Turkey is the worst since 2002.
Food for Thought: The hollowing out of the middle class:
Edited by Joseph 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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