In today’s briefing:
- Reflation Watch: Has Japan turned a page, and have markets gotten ahead of themselves?
- CX Daliy: China IPO slowdown pits startups against investors
- Shrinking Inventories Lends Support to Oil Prices in the Near-Term
- UK Wage Wealth is an Inflationary Illusion
Reflation Watch: Has Japan turned a page, and have markets gotten ahead of themselves?
- Stagnant growth and price deflation have defined the term Japanization, and, due to rapidly rising debt levels in conjunction with aging populations, long been the striking worry for many economists.
- Post-Covid inflation has shifted the narrative however, and fears of it becoming structural has taken over as the new doom-scenario globally.
- For Japan though, inflation is not so much a fear as a hope, and we see signs that Japan is in fact achieving sustained inflation.
CX Daliy: China IPO slowdown pits startups against investors
- IPOs / In Depth: China IPO slowdown pits startups against investors
- Pakistan /: Beijing pushes Pakistan to hunt down ‘terrorists’ after bombing kills five Chinese
- TikTok /: Rivals vie to fill market void as U.S. business ban looms over TikTok
Shrinking Inventories Lends Support to Oil Prices in the Near-Term
- As of the week ending 15/March, crude inventories fell more than expected (2 million barrels vs 900k barrels expected) led by higher exports and refinery activity.
- Refineries operations have picked up faster than anticipated, with the utilization rate jumping from 80% in early February to nearly 88% by 15/Mar.
- OPEC members like Iraq, UAE, Gabon, and Kuwait, have exceeded their production quotas, raising concerns about adherence.
UK Wage Wealth is an Inflationary Illusion
- Nominal disposable income continues to surge amid widespread enormous pay rises. Unmatched by productivity, the nominal boost is eroded by inflation to real stagnation.
- The regime of high nominal increases nonetheless inflates away the debt stock, helping sustain affordability despite forceful interest rate increases.
- An inflationary reduction in debt burdens is not real wealth. The UK’s net worth is crashing to record negatives as corporates and households suffer post-pandemic.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
