Key takeaways from Taiwan's President election;
1) Re-elected President Lai Ching-te (DPP party) favors closer ties with the US and an expected status quo regarding the situation of Taiwan and the existing relationships. We don’t expect any significant change in Taiwan’s policies 2) We note that US President Biden statement post-election has been very balanced (Official congratulations to Lai-Ching Te but no support to Taiwan independence vote) Source: Bloomberg
Tether $USDT's market cap dominance is 71% now.
Source: https://cryptoquant.com, Ki Young Ju
The Fed balance sheet expanded last week by $5.7BN - the most since March's SVB crisis...
Source: Bloomberg, www.zerohedge.com
Wondering by us bank stocks are doing well?
Since the introduction of the Bank Term Funding Program (BTFP) in March, there is a nice arbitrage opportunity for banks - watch out on the chart below the gap between the rate on the Federal Reserve’s nascent funding facility and what the central bank pays institutions parking reserves. Since March / SVB crisis, the BTFP-Fed Arb continues to offer 'free-money' to banks - and usage of the BTFP has risen by $38BN since the arb started to exist. Source: Bloomberg. www.zerohedge.com
Less and less Americans are getting married.
This is negatively impacting family formation and leading to a slower population growth rate as a result. Source: Markets & Mayhem, Bloomberg
On January 10, the GDPNow model nowcast of us real GDP growth in Q4 2023 is 2.2%
Source: Atlanta Fed
Over the next several weeks, governments from the US, UK and the eurozone will start flooding the market with bonds at a clip rarely seen before
Saddled with the kind of bloated deficits that were once unthinkable, these countries — along with Japan — will sell a net $2.1 trillion of new bonds to finance their 2024 spending plans, a 7% increase from last year, according to estimates from Bloomberg Intelligence.
FASTEST easing of Financial Conditions in HISTORY
Source: WinSmart, BofA
