A common European Union defense buildup would provide substantial relief to many manufacturers, particularly in Germany. … READ MORE >
Economics
Market minute: U.S. housing supply is not meeting demand
One reason for the inadequate supply is that many homeowners are sitting on low-rate mortgages locked in during the pandemic and before. … READ MORE >
The new mercantilism: Tariffs and currency manipulation in an era of U.S.-China tensions
After decades of growing trade and current account imbalances in the U.S., the new administration has set out to change this equation. Now, a new mercantilism, rooted in tariffs and trade protection, is emerging. … READ MORE >
The decline in January retail sales is less concerning than it might seem
The January retail sales report is one of those rare occasions where looking at the 12-month change makes more sense than the monthly metric. … READ MORE >
Market minute: Clash of the titans to cause further currency manipulation
The relative yield differentials between the U.S. and China point to the possibility that China will engineer a gradual, but large, depreciation in the yuan this year. … READ MORE >
Producer inflation topped forecasts in January, led by food and energy prices
The producer price index rose by 0.4% in January, following an upwardly revised 0.5% increase in December, making it the hottest two-month stretch of inflation since February last year. … READ MORE >
Market minute: Money markets signal an easing in 10-year yields
A look at the spread between the two-year and 10-year U.S. Treasury yields in comparison with the Treasury term premium implies room for further easing in long-term yields. … READ MORE >
Inflation accelerates in January amid concerns about rising expectations
The CPI data for January will feed into expectations that the Fed is done cutting rates just as policy uncertainty on trade and immigration is likely to feed into rising inflation expectations.
… READ MORE >
Market minute: The problem of sticky and stubborn inflation
While housing inflation is easing, owners’ equivalent rent remains one of the two major catalysts for rising cost pressures on American households. … READ MORE >
Market minute: Foreign purchases of U.S. Treasury issuance
Through the end of November, the largest foreign holders of U.S. debt were Japan at $1.09 trillion, China at $768 billion and the U.K. at $765 billion. … READ MORE >