1. No. Wall Street strategists’ predicting that the US government’s 10-year borrowing costs will climb above the 3 per cent mark in the coming year is as much a staple of the Christmas period as awkward office parties. This year the forecasts look more likely to be fulfilled, given a withdrawal of quantitative easing and the US tax cut. However, the seismic, secular forces pinning down both inflation and long-term bond yields remain in place and are still underestimated. The Federal Reserve will raise interest rates at least three times in 2018, but the 10-year yield will not breach 3 per cent.
3. Warm hearted wishes for a happy New Year filled with all your favorite things.
4. Folk Song “Jasmine” (Song Zuying and Celine Dion, Canada)
5. Without the cut, Hollande would have earned 255,600 euros a year ($274,522), second only to Obama. Now he makes $198,700. Famously, his personal hairdresser makes $132,000 a year.
6. Investors in emerging markets need no reminder of the importance for EM assets of the US Federal Reserve — or do they?