Global Research and Market Insights

Once upon a time, families would gather together on Thanksgiving, eat turkey and discuss the potential for a Goldilocks economy . . . but this year it’s all about the bears. Globally, cautious sentiment abounds, but we get tactically bullish on China which should recover while other areas slow. While higher rates spell bad news for CFOs (Chief Financial Officers) faced with refinancing debt, it’s good news for reinsurance companies.

The weaker-than-expected reading on core inflation was driven by the sharp 0.4% drop in core goods prices (we were looking for a more modest decline of 0.1% m/m), as used car prices plunged 2.4% m/m and goods deflation showed signs of broadening.