The "maddest macro chart I have seen for many years." by Albert Edwards (SocGen)
"The US corporate sector is a massive net borrower. Normally when interest rates rise, so too do net debt payments, squeezing profit margins and slowing the economy. BUT NOT THIS TIME. Corporate net interest payments have instead collapsed. What on earth is going on?" asked Edwards "This chart not only explain the resilience of corporate profits, but is a key reason why this recession has been delayed – especially as companies in aggregate are now a net beneficiary of higher rates (NB: this is mainly explained by mega-caps as most of the other companies are in big trouble). Source: SocGen, www.zerohedge.com
A soft landing of the US economy is indeed a consensus view but it is starting to gain attraction following the lates job market reports (JOLTs, ADP, et.c)
Source: Hedgeye
The most profitable companies in the world
Source: InvestyWise
Where do 8 billion people live?
Source: statsofindia.in
The percentage of US workers quitting their jobs has moved down to 2.3%, the fewest since January 2021
The 1.5 job openings per unemployed person in the US is lowest since September 2021. Labor market continues to loosen... Source: Charlie Bilello
Treasury yields extend retreat from year’s highs after GDP data
Short-maturity yields led the move, with two-year yields declining about five basis points to around 4.85%, and most yields reached the lowest levels in more than two weeks. The
benchmark 10-year note’s yield touched 4.085%, the lowest level since Aug. 11.
Following downward revisions to the economy’s Q2 growth rate and related inflation measures, swap contracts tied to Fed meeting dates priced in slightly less than a 50% chance of another rate increase this year. Source: Bloomberg
Germany's inflation drops to 6.1% in Aug from 6.2% in July while Core inflation stagnates at 5.5%
BUT 6.1% headline reading was 10 basis points above market predictions as energy prices accelerated to 8.3% in Aug from 5.7% in Jul. Food price inflation slowed to 9% in Aug from 11% in July. Source: HolgerZ, Bloomberg
Hong Kong Dollar is on track for its biggest monthly loss against the US Dollar in 38 years
source: Bloomberg, Barchart
