Driven by central bank cutting bets, global debt has had a nice run here in 4Q23. For those keeping score, the BBG Global Aggregate Total Return Index is up almost 10% in Nov and Dec MTD—the best performance since 1990.
South Korea’s chip output increased 42% in Nov y/y—the most since 2017, per NOSO. Shipments were up 80%, the largest gain since 2002. You have to wonder whether this is eating out of China’s share.
Sounds like the Real Housewives of Bridgewater in a top BBG story this morning. Total clickbait. You won. The new CEO of the firm is under scrutiny amidst favoritism claims from a prior employee due to Bar Dea’s prior office romance—a situation which sounds common and messy.
Initial applications for US unemployment benefits increased last week, with 1st time claims up by 12k to 218k. The 4-wk number was fairly steady, though. Before hopping without a landing pad, employees may think twice heading into 2024.
They’re becoming such a big issue. BBG has a really interesting story about water in Australia, if you have time to check it out. With water going from a public good to a tradeable commodity, there are consequences–including a huge shift in profits. As the driest inhabited continent, the country’s water exchange prices up the access to water…which hurts the little folks. It’s a long read but a good one.
As the Fed is removing liquidity, as you know, so the markets can no longer rely on the central bank for its stimulus. Overnight repo is increasing—matching an all time high. Let’s keep an eye on this…because we want to see this improve. Usually this volatility is a sign of problems. But sometimes banks are just getting their balance sheets ready for regulatory checks, and then things improve after year-end.
