US CPI has moved down from a peak of 9.1% last June to 6.5% in December
What's driving that decline? Lower rates of inflation in New/Used Cars, Gasoline, Apparel, Medical Care, Food at Home, Gas Utilities, and Fuel Oil. Source: Charlie Bilello
U.S. 3-month government bond yield hits new highs!
The yield on three-month U.S. T-Bill rose 8 basis points to 4.66 percent, its highest level since 2007. This reflects the latest comments from Fed members in favor of further increases in the federal funds rates. It is worth noting that the next FOMC meeting will be held on February 1 and the market is so far expecting a 25 basis point increase. Source: Bloomberg
China Jet Fuel Demand Set To Soar Ahead Of Lunar New Year
China's oil demand could surge as it reopens after scraping zero Covid restrictions. Beijing's Covid curbs weighed on crude and refined products demand for three years. Soaring air travel demand ahead of the Lunar New Year is yet more evidence fuel demand is gathering steam. China's easing of border restrictions imposed almost three years ago has been a recent boon for air travel, domestically and internationally. There are no more mandatory quarantines for travelers arriving in China. BloombergNEF said jet fuel demand is rising in China ahead of the holidays. They noted that scheduled passenger flights for Jan 10 to 16 indicate jet fuel demand has reached about 0.61 million barrels per day (mbpd), rising 0.10 mbpd compared with a week earlier. Then by next week, jet fuel demand could increase to 0.72 mbpd. This would mark the highest demand for Chinese jet fuel in more than 1.5 years. Source: Bloomberg, www.zerohedge.com
Recession risk - Bloomberg’s monthly global growth tracker drops to 0.1%
Bloomberg Economics Global GDP Tracker Source: Bloomberg TV
Global Supply Chain Stress is easing
Source: Bloomberg
Another sign of economic growth softening in the US?
US Small-Business Optimism Falls to Second-Weakest Since 2013 - Bloomberg
China's reopening is underway!
As shown by the average traffic congestion index in 10 major Chinese cities, China's domestic mobility is recovering rapidly!
French trade deficit expanded in November
As November trade data come in - after European energy prices had come back down - we're getting a picture of the "new normal" across Europe. Here is the French trade deficit (-) every November. Huge trade deficit in 2022, exacerbated by the maintenance of nuclear power plants... Source: Robin Brooks
