The cooker pressure is on amid higher oil prices and US interest rates
Saxo Market Call
Summary: Higher Brent crude above $87/brl and the US 10-year yield firmly pushing above the 1.8% level is taking the energy level up a notch with Nasdaq 100 futures down 2%. Market participants are clearly changing their guidance on inflation and continue to rotate out of high duration assets and into shorter term duration assets and inflation hedges such as energy assets. In today's podcast Althea go through the different tightening cycle this time compared to the previous one and Ole talks about oil markets, and gold's reaction to higher interest rates. Peter talks about the Q4 earnings season which really heats up next week but with three important earnings this week from ASML (tomorrow), Netflix (Thursday), and Schlumberger (Friday) Today's pod features Peter Garnry on equities, Althea Spinozzi on fixed income, and Ole S. Hansen on commodities.
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Outrageous Predictions 2023: The War Economy
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A country agrees to ban all meat production by 2030In an effort to become one of the global leaders on the path to net-zero emissions, one country decides to not only put a heavy tax on meat, but to ban domestic production entirely.
UK holds UnBrexit referendumFollowing a recession and domestic pressure, the United Kingdom is thrown into political turmoil that will end with a vote to wind back Brexit.
Widespread price controls are introduced to cap official inflationHistory tells us that with the war economy comes rationing and price controls. And this time is no different, as policymakers introduce strict price controls that lead to a range of unintended consequences.
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