The chart below shows Nigeria's latest FX reserves trend. Some, however, suggest that these figures are overstated, and the actual situation is even worse. Further weakness in the currency could destabilize the nation as inflation spirals out of control. The recent rate hike (discussed last week) has not worked.
10yr government bond yield hit multi-year lows as fixed income money pours into emerging markets.
1. In the fixed income markets, treasuries were whipped around on Friday, ending higher (yield lower) after the US GDP report.
2. The US dollar index tumbled 1% on Friday after the BoJ announcement, with Morgan Stanley warning that more dollar weakness is on the way. That's a bullish sign for risk assets (equities, commodities, emerging markets, etc.).
3. Libor continues to grind higher.
Turning to politics and the equity markets, Wall Street seems to want Hillary Clinton to win. The two charts below show (in part) why. Historically, a leadership change with the same party in place produces the best returns. A Democrat in the White House with a Republican-controlled Congress also produces the best result.
2. The once-hot online lending ("P2P") market does not seem too attractive anymore.
3. Ex-US markets sharply outperformed the S&P500 over the past 5 days.
1. In commodities, crude oil remains under pressure as US oil rig count rises again.
2. However, according to Bloomberg, "glut in oil supply is set to end amid investment cuts". Indeed, major oil firms show little appetite for CapEx, suggesting that supplies are unlikely to keep up with the rising global demand in the intermediate term.
3. Long-silver has become an incredibly crowded trade.
4. US wheat continues to sell off. The second chart below shows Deere & Company shares over the last couple of months.
Turning to Food for Thought, we have 4 items today:
1. Growth in connected devices.
2. By and large, Europe isn't much into diversity.
3. The next chart shows the national poverty line vs. the prosperity of each country. A "poverty line" is the level of income below which a nation would classify one as impoverished. PPP is purchasing power parity (a way to compare incomes across nations).
4. According to Vox, "a single restaurant mixed drink can contain half a day's worth of calories".
— Edited by Clemens Bomsdorf* Walter Kurtz is an alias
**This is an abridged version of the Daily Shot. To subscribe to the full version, link to the Daily Shot and select the appropriate command. E-mail addresses are never shared with anyone.