1. US Fed week - ‘The ECB’s chief economist has signalled Eurozone policymakers stand ready to act, should rate increase in the US trigger a rise in global borrowing costs…”we are going to see what happens and we are ready to face any situation there”, Peter Praet, the ECB chief economist said’ (FT). Big week for much more than just US monetary policy as I discussed in the latest Financial Orbit Speaks as you can read at the tab above.
Talking about the US rate rise I liked this via @TheStalwart:
2. Japan - BoJ Tankan Survey (Q4):
-Large All Industry Capex: 10.8% (exp 10.2% prev 10.9%)
“The Tankan results seem broadly in line with our expectations that any additional easing move by the BoJ would be delayed, at least, until next spring,” said Credit Suisse analysts Hiromichi Shirakawa and Takashi Shiono (quoted by @FastFT). Am not sure if I would be so charitable. Still does not look great to me...
A few interesting tweets I made during the day:
3. Fascinating...even adjusting for the cost of living differences. Supply side reform (aka lower taxes) matters!
4. Spanish election less than a week away.
5. "This year... worst performance for high-yield debt outside of a recession"
Keep watching the high yield markets re their contribution to general volatility level potential.