I am going to start putting the weekday newsletter into sections to create a flow between news items. I have six sections in todays's newsletter: markets, macro, micro, the US, the UK, and China. So there's a lot of news flow, most of it negative unfortunately. The key piece in the mix of all of this is the 4.2% update to the GDPNow tracker. That tells you that, despite the negative news flow, the fundamentals in the US are still on track.
My view: This downdraft will eventually pass as earnings season gets underway. The fundamentals of the US economy are still good enough to put a floor under earnings and stock prices. At the same time, the Fed's timetable is likely to accelerate, and that will put upward pressure on interest rates, undercutting the economic cheer.
Bank Earnings: ...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.