Limit Up!

Limit Up! 10th March 2025

Written by Ian Reynolds | Mar 10, 2025 12:45:29 AM

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Overnight

China CPI, PPI February 2025

And from Friday

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

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

 

Bitcoin

BTC very weak and looking to test 75,000. No matter how much good news there is, market is still bleak. 

BITCOIN / USD Daily

Federally regulated US Banks can now custody Bitcoin without requiring prior approval - Office of the Comptroller of the Currency (OCC) [Reuters]

Precious Metals

Gold and Silver stable but no flight to safety yet

SILVER / USD Daily

China's central bank ups gold reserves for fourth straight month in February [Reuters]

South Korea’s mint is grappling with a gold bar shortage as supply constraints bite [CNBC]

Bonds

Safety seems to be in US 10 year.

US 10 Year Government Bond Yield Daily

Foreign Exchange

USD lower again this morning.

DXY Daily

Interesting

China, Iran, Russia wrap up sea phase of joint naval exercise [Global Times]

Companies sound alarm on failing Victorian economy [MacroBusiness] 

Economic Indicators Today