FICC

Special Report

In this, our final report of the year, we present our main global fixed income investment themes and recommendations for 2024.

A post-mortem of our trades for the year, and also comments on future yen and sterling moves from the recent BoJ meeting, and the UK inflation report.

Special Report

Our outlook for the Fed’s interest rate and balance sheet policies in 2024.

Special Report

In this week’s report, we present our dollar view for 2024 and beyond, with a few trade ideas.

Special Report

Political economy dominates fundamentals going into 2024, as states prepare for war and de-risk supply chains. Asynchronous global growth will elevate commodity-price volatility. We expect oil to trade above $100/bbl in 2024 and continue to favor equity exposure to oil-and-gas producers. Given weak capex, we also favor metals miners and refiners. We remain long the Gold, the XME and COMT ETFs We were stopped out of our XOP ETF with a 12.5% gain; we will re-establish it at tonight’s close.

Our US bond team’s thoughts on this afternoon’s FOMC meeting and yesterday’s CPI release.

Special Report

Our US fixed income team’s key investment views for 2024.

Falling core inflation in the US over the short run will boost real disposable household income, which will keep consumption – ~ 70% of US GDP – strong. Over the medium- to-longer term – 3 to 5 years out – inflation risks rise as fiscal dominance becomes the Fed’s modus operandi, and economic fragmentation becomes entrenched. War and the expansion of war remains an inflation risk. In this environment, gold remains our preferred hedge.

Special Report

In this Special Report, we take an in-depth look at the outlook for monetary policy in Australia and discuss the impact of an elevated policy rate on the economy. We recommend an underweight country allocation to Australian government bonds and look for opportunities to go long the Australian dollar.

Our Portfolio Allocation Summary for December 2023.