German 10y yields jump to 2.64%, highest since Nov, following a somewhat hotter inflation report.
German Harmonized CPI rose to 2.8% in May YoY from 2.4% in Apr, above the 2.7% median estimate in a BBG poll of economists. German national CPI rose to 2.4% from 2.2% as expected. Source: Bloomberg, HolgerZ
Shocking stat of the day: US net interest payments as a share of GDP are set to reach 3.9% by 2034, the highest in history.
This exceeds the all-time record percentage seen in the 1990s as well as World War II levels. Net interest is expected to account for 75% of the budget deficit increase over the next decade, according to the CBO. All as interest expense has already DOUBLED in just 3 years and now costs the US ~$2 billion per day. The worst part? This project assumes no recession hits within the next 10 years. What happens if we enter a recession? Source: The Kobeissi Letter
Germany's inflation rose to 2.4% in May from 2.2% in April while Core CPI remains unchanged at 3%.
Uptick was driven by base effects related to the introduction of a cheap public-transportation ticket (so-called 49€ ticket), which pushed prices down 12 months ago. But also food price inflation quickened (for a 2nd month). Source: HolgerZ, Bloomberg
Commodities, the silent bull market that almost nobody cares about...
Source: Ronnie Stoeferle, MUFG
1 of the craziest stats in the market right now 👇
$AAPL announced a $110B stock buyback program in Q1. If you strip out the Mag 7 from the index, the average market cap for the S&P 493 is just $65B. $AAPL buyback program is 169% larger than the average S&P 493 company. Source: David Marlin
The most powerful person in the world is the storyteller. —Steve Jobs
Source: Vala Afshar
McDonald’s Back on Long-Term Swing Low
McDonald’s (MCD US) has consolidated 17% since the January highs. It's now testing a strong support zone between 245-250. Keep an eye on this level. Source: Bloomberg
Chinese BYD launches plug-in hybrids with a 2100 km driving range
Source: WSJ
