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22 Sep 2023

Into thin air

The speed at which memes spread across the financial media can be astonishing. Since the Bank of England’s Huw Pill recently described the likely monetary policy trajectory as resembling Cape Town’s “Table Mountain” – steep on the sides, with a long plateau on top – in an August speech, sell-side analysts and commentators from major news publications have rushed to point out that the majority of mountain climbing deaths occur during the descent phase. This is true. A 2008 study showed that 73 percent of the deaths occurring between 1921 and 2006 on Mount Everest happened when climbers were descending...

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US exceptionalism trade regains momentum

A bruising week for global Wall Street continues this morning, with the dollar holding steady and major indices paring gains into the North American open. Ten-year Treasury yields are inching slightly lower after climbing to a 16-year high in yesterday’s session, paying more than 4.5 percent at one point. The moves came after the Federal Reserve on Wednesday issued forecasts showing rate cuts happening at a slower and more incremental pace than markets had previously anticipated, and after another weekly claims report beat expectations, suggesting that labour markets remain far from cooling. The number of initial applications for unemployment benefits fell...

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