Greetings,
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.
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/
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