Limit Up! 10th March 2025

Ian Reynolds March 10, 2025

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Overnight

china cpi

China CPI, PPI February 2025

And from Friday

china trade

China Trade Balance February 2025

The economic picture sours further and the stock markets are predicting a much bigger stimulus coming. For ages markets have assumed that China can collapse without impacting other markets. Maybe that's wrong.

Breaking

Mark Carney Wins Canada Liberal Contest, Will Succeed Trudeau in Days [Bloomberg]

Stablecoins will preserve dollar dominance, Bessent says [MSN]

Mercedes-Benz to cut headcount, lower pay increases amid cost-cutting drive [Reuters]

China hits back at Canada with fresh agriculture tariffs [Reuters]

Sentiment very low in stocks and crypto, and even worse EU bonds. US equity futures lower on the open Monday morning

US Equity Futures

Investors now seriously considering whether Trump and Bessent are trying to crash markets to get the cost of borrowing down. Powell is clearly not playing ball so they'll have to find another way to do it. Stablecoins seems to be the choice.

A good result for Canada, electing Mark Carney. Ex Bank of Canada and Bank of England, at least he knows economics and financial markets. And Canada really needs him right now.

Scott Bessent on the air a lot now: “The first time I went to see President Trump he looked at me and said ‘How do we get this debt and deficit down without killing the economy?’ I’ve been thinking about this for 18 months… 25% of GDP goes through Area Code 202 (Washington DC)”

and

As "President Trump has directed, we will keep the US dollar the dominant currency in the world, and we will use stablecoins to do that"

The whole plan revolves around keeping coupons scarce. Not issuing any, and using stablecoins, collateralised by coupons, would achieve that result.