Most of the world's central banks are easing.
(see NDR analysis below)
Historical asset bubble summary from BofA, including the current Mag7 frothiness.
”History shows only central banks end melt-ups”… Source: BofA, Wasteland Capital
🚨 JUST IN: CANADA SLASHES RATES BY 50 BPS
Fifth cut in a row... Dropping the policy rate from 5% to 3.25% in 2024—150 bps total. But it’s not working fast enough: -Unemployment: 6.8% (highest in 8 years). -GDP per capita: Down 6 straight quarters. -Canadian Dollar $CAD at 4.5-year low -Former BOC Governor says “We’re already in a recession.” Market is pricing in another ~50bps of cuts by July 2025 ➡️ 2.75% overnight rate. Source: Genevieve Roch-Decter, CFA, Bloomberg
THERE ARE 7 DAYS TO THE LAST FED'S MEETING THIS YEAR
Market is pricing an 86% probability of a 0.25% rate cut, up from 73% last week. This comes after the November job report showed a lot of weakness under the surface. The Fed cut rates by 0.50% and 0.25% in Sep and Nov. Source: Global Markets Investor
‼️ BREAKING: This doesn't sound like a great mark of confidence...
The Bank of England will hide the identities of any pension funds, insurers or hedge funds bailed out under a new financial stability tool to prevent crisis contagion... Source: Radar @RadarHits - Bloomberg
🚨BIG WEEK FOR CENTRAL BANK DECISIONS AHEAD🚨
The European Central Bank, the Bank of Canada, the Swiss National Bank and the Reserve Bank of Australia will announce rate decisions. ECB and SNB are expected to cut by 0.25%, and BoC by 0.50%, while RBA to leave rates unchanged. Source; Global Markets Investor @GlobalMktObserv, Bloomberg
🚨 Saudi Arabia's U.S. Treasury Holdings are now the largest in more than 4.5 years
Source: Barchart, Bloomberg
Eurozone wages jumped 5.4% YoY, the biggest increase since the euro was introduced.
The data may complicate the ECB’s easing plans. Source: HolgerZ, Bloomberg
