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United States
AI-driven computer and electronics production continues to surge, accounting for roughly half of overall manufacturing output growth, while nearly all remaining gains are concentrated in aerospace and other advanced industries. In contrast, lower-value-added manufacturing has stagnated.
Euro Area
The Rhine River water level at Kaub remains low. The Kiel Institute estimates that industrial production falls by 1% for every 30 days the water level is below the 0.78-meter threshold.
Europe
Carry traders are increasingly favoring the Swiss franc over the yen as near-zero Swiss rates and a dovish SNB improve funding economics.
Japan
JGB yields don’t stand out based on a cross-sectional analysis of OECD members’ current account balances and their 10-year government bond yields.
Equities
Without rebalancing, a 60/40 portfolio would’ve become a 92/8 portfolio.
Rates
HFGM, the ETF we use as a proxy for global macro hedge funds, has a net developed world government bond exposure of nearly −100%.
Commodities
Copper’s historic LME supply squeeze eased as more than 20,000 tons entered exchange warehouses.
