The Daily Shot Brief – September 21th, 2017

Greetings,

The United States: As expected, the Federal Reserve will begin the long-awaited balance sheet unwind next month. But to the surprise of some economists, the central bank also appears to be on target to raise rates in December. The futures-based probability of a December rate hike jumped in response to the FOMC announcement.

Below is the breakdown and the forecasts of medical care CPI

Source: Moody’s Investors Service

 

Existing home sales dipped again, missing economists’ forecasts. Affordability is becoming more of an issue.

Source: Piper Jaffray

 

Credit: This year we had quite a few large leveraged loan transactions.

Source: S&P Global Market Intelligence

 

Equity Markets: The market shrugged off a more hawkish stance from the Fed, with VIX closing below 10 again. Amazing.

 

UK:  The market is now pricing in two rate hikes over the next year.

Source: Credit Suisse

 

Asia/Pacific: China’s insurance firms are loading up on alternative investments.

Source: Moody’s Investors Service

 

Emerging Markets: Short-term bond yields in Russia and Brazil continue to tumble amid expectations of further rate cuts in both countries.

 

The Eurozone: This chart shows unit labor cost for the largest Eurozone economies since 1999. Germany remains competitive.

Source: Goldman Sachs, @joshdigga

 


Food for Thought: This chart shows health insurance premium inflation which has been outpacing the CPI and wages.

Source: @SteveRattner; Read full article

Edited by Josh Marte


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

Leave a Reply

Your email address will not be published. Required fields are marked *