The Cost of Capital Climbs

In this week’s podcast, Andy talks with Sharmila Whelan from Westbourne Research.

Long-term interest rates are back near two-decade highs. The short end has eased as soft US data pare back Fed tightening bets, but the long end keeps climbing on deeper, structural forces. Many of this week’s charts set out what they are.

US data soften, short-end yields ease

Japan leans on exports, not domestic demand

Defence spending climbs across Europe

Corporates turn from savers to borrowers

The saving glut remains concentrated in China

US productivity growth (TFP) slips into negative territory