In May 2020, there were 21 countries with negative interest rates. Today there are none.
Sanity has returned to the global bond market... Source: Charlie Bilello
With real estate bubble bursting, no access to foreign equities and bitcoin, no wonder that people are flocking to gold.
Source: Bloomberg, Michel A.Arouet
Oil prices are now up 17% this year and well above $80/barrel again.
OPEC remains committed to production cuts and geopolitical tensions have threatened supply. Meanwhile, global demand forecasts are being raised and inflation is rebounding. Even as non-OPEC production is at record highs, oil prices continue to skyrocket. It seems like high oil prices are just the new normal for consumers. And it is not gooing to help healdine inflation to move back to the Fed's target. Source: The Kobeissi Letter
THE WEEK AHEAD... All eyes on inflation data + Powell speech on Friday
>>> In the US: 1. New Home Sales data - Monday 2. CB Consumer Confidence - Tuesday 3. US Q4 2023 GDP data - Thursday 4. February PCE Inflation data - Friday 5. hashtag#Fed Chair Powell Speaks - Friday 6. Total of 5 Fed Speaker Events >>> Inflation will also be the key theme in europe as flash CPI reports start to come in. >>> In Japan, the focus will be on the summary of opinions from this week's BoJ meeting as well as the Tokyo CPI, labour market data and industrial production. Picture via openart.ai/midjourney
The importance of capital markets for selected economies in one chart
Source: HolgerZ
The AI chip market size is forecasted to grow at a CAGR of 29% through 2032
Driven by the rising adoption of artificial intelligence across various industries, coupled with the growing demand for high-bandwidth memory, rapid computation, and parallel processing capabilities. Source: Beth Kindig
Are us financial conditions becoming too easy to tame inflation ?
Source: Bloomberg, Steno Research, Macrobond
Below central bank holdings of government bonds...
Greece was excluded from ECB QE under Draghi, but was included in COVID QE, giving it a big boost (pink). Greece then undermined the G7 cap on Russia at every turn, protecting its shipping oligarchs at the expense of the EU. If you can't behave properly, there should be no QE... Source; Robin Brooks
