- the Japanese elections cannot be ignored by markets because the leadership vaccum it creates leaves Japan vulnerable to US bullying at a moment when Japan needs to take tough decisions on trade, defence and new allies. Instead we shall get vacillating political leadership and more unnecessary fiscal spending. The BoJ will probably round this off by acting like a chicken paralysed on the tracks when it needs to deal decisively with inflation which is disheartening the consumer,
- The US Fed is now politicised by Governor Chris Waller thowing his hat in the ring to be next Fed Chair and writing a poorly reasoned piece on why the Fed should cut rates now!! Amazing from a guy whose intellect i admired. But the Fed will hang tough and the question is what will Trump do next to undermine its authority? nothing good for the US$ - that's sure. Meanwhile this week the Magnificent 7 et al are reporting earnings and face a high bar to justify the view that they are superior, immortal and not apart of the Trumpian economy.