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Special Report The UK labor market remains far too tight to expect wage growth to slow to levels consistent with the Bank of England inflation target. A true recession with rising unemployment is needed to finally slay the UK inflation beast. 2024…
  USD/JPY has appreciated by over 10% so far in 2024, making the yen the worst performing G10 currency year-to-date. This cross has also surpassed the 150 threshold which historically is the level at which the Bank of Japan begins…
  BCA Research’s Emerging Markets Strategy service concludes that among the CE3 currencies, the zloty and the koruna will be the relative winners, while the forint will likely be the worst performer of the three. That said,…
China’s economy is cruising at a very low altitude. The odds are that China’s equity rebound is running out of time. The RMB will continue to depreciate versus the US dollar in the coming months, albeit the pace may be modest.
  Flash estimates for several European PMIs were released Tuesday. The results for manufacturing activity were somewhat disappointing. The German manufacturing PMI increased from 41.9 to 42.2, but underperformed expectations of…
  Euro Area small caps typically outperform large caps whenever the trade weighted euro appreciates and underperform whenever it depreciates. The rationale is simple. Most European large cap companies are large multinationals that…
Q1 earnings results of the largest US banks have demonstrated that the engine of recent growth in profitability, NII, has faltered as funding costs are rising fast. However, the resurgence in non-NII thanks to a revival in corporate…
  Japan’s national CPI inflation unexpectedly cooled in March, falling to 2.7% y/y versus consensus estimates it would remain at 2.8% y/y. Notably, measures of underlying inflation such as core CPI (ex-fresh food) and “…
  The IMF’s latest fiscal monitor report highlighted the dangers that rising sovereign debt alongside rising deficits pose to advanced economies. The United States, in particular, is at risk. The IMF projects that fiscal…
  The Bitcoin halving is a crucial landmark in the Bitcoin protocol. It refers to the process by which rewards for mining bitcoin are cut by half. It occurs roughly every four years, with previous halvings occurring in November 2012…