The United States: The maximum fed funds rate in this cycle is expected to be around 3.0 – 3.5%.
It does not leave sufficient room to cut rates in the next recession unless the Fed takes the rate below zero or restarts QE. Many states will get hit hard without a more traditional Fed policy response.
China: China’s stock market keeps drifting lower.
The Eurozone: Italian banks still own massive amounts of the nation’s government debt. What happens if Italy’s bonds get downgraded to the point that they become ineligible as collateral at the ECB?
Equity Markets: The market is still ignoring the massive China tariffs that will be announced shortly. Businesses, however, are boosting their lobbying efforts.
Global Developments: These charts rank nations by the percentage of domestic ownership of government debt.
Emerging Markets: Here is the EM sovereign ratings map from Moody’s.
Food for Thought: Which cities’ property markets will benefit the most from Amazon choosing them for the firm’s second headquarters?
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 firstname.lastname@example.org.
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