"The increasing inertia and, at times, paralysis that has characterized the Brexit-era policymaking process has illustrated how the capability and predictability that has traditionally distinguished the U.K.’s institutional framework has diminished."
When many central banks have negative policy rates, they just offset each other in a race to the bottom, leaving their currencies broadly unchanged and staying with the negative side effects, making everyone worse off.
The first task of those at the levers of neoliberal global capitalism is to deny that global capitalism is in crisis... with the no recession ever again policy that is the implicit goal of central banks and governments globally.
"... we anticipate that clients will ask if increasing yields will at some point derail equities and this cyclical rotation. Our view and analysis suggest that yields can increase another ~150 bps before they become a potential problem"
"New highs every day. Investors are chasing. The president celebrates on twitter almost every day... Things are great. Melt-up talk is the rage. Hate to be the seemingly lone voice of caution here, but something smells..."
Rising rates have massive negative implications for corporate credit and without the juice of further central bank easing – stock markets could well lose heart.
As the U.S. and China continue to grapple with solving "Phase 1" of the allegedly upcoming trade deal, pressure remains on the automobile industry globally.
