In China, Chairman Xi Jinping will be presiding over the long-expected Communist Party Plenum, which is usually looked to for policy guidance.
Tellingly, this weekend saw China disband a three-year old Global Forum on Steel Excess Capacity after nobody has been prepared to cut back on capacity: China is claiming it alone has, but this somehow overlooks that its net steel output is up on three years ago, at a record high, and still growing.
Enough minutiae about Fed policy: our house view remains they are going all the way back to zero.
The global backdrop remains of slowing growth, increased financial vulnerability in places, and yet an institutional architecture that is either in denial or has no firm idea of what policy mix to use to stop this happening.
Consider that we now have mass public unrest in: France, Spain, and that 24% AfD vote in Germany, and Brexit in the UK; Algeria; Iraq: Lebanon; Egypt; Russia; Hong Kong; Venezuela; Chile; Ecuador; and Bolivia.
Student uprisings in the West produced social reforms and a policy swing to the Left.
In short, regardless of what the Fed does this week, or the BOJ; and whatever the PMIs print at; and whatever the EU or Boris give and get, we still face Ages and Ages of Rage in a market that is still largely pricing for the calm of the status quo ante.
https://www.zerohedge.com/geopolitical/we-now-have-mass-public-unrest-france-spain-algeria-iraq-lebanon-egypt-hong-kong
Tellingly, this weekend saw China disband a three-year old Global Forum on Steel Excess Capacity after nobody has been prepared to cut back on capacity: China is claiming it alone has, but this somehow overlooks that its net steel output is up on three years ago, at a record high, and still growing.
Enough minutiae about Fed policy: our house view remains they are going all the way back to zero.
The global backdrop remains of slowing growth, increased financial vulnerability in places, and yet an institutional architecture that is either in denial or has no firm idea of what policy mix to use to stop this happening.
Consider that we now have mass public unrest in: France, Spain, and that 24% AfD vote in Germany, and Brexit in the UK; Algeria; Iraq: Lebanon; Egypt; Russia; Hong Kong; Venezuela; Chile; Ecuador; and Bolivia.
Student uprisings in the West produced social reforms and a policy swing to the Left.
In short, regardless of what the Fed does this week, or the BOJ; and whatever the PMIs print at; and whatever the EU or Boris give and get, we still face Ages and Ages of Rage in a market that is still largely pricing for the calm of the status quo ante.
https://www.zerohedge.com/geopolitical/we-now-have-mass-public-unrest-france-spain-algeria-iraq-lebanon-egypt-hong-kong
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