Daily Brief Macro: The Great Game – Wang Yi and His Wish.com Weapons and more

• 1) China wants Russia to be in their camp. Both for political reasons, but also to be able to offer cheap energy to non-aligned third world countries.
• 2) Every day the war continues, Russia becomes more and more dependant on China.
• 3) While the war is a strain on Chinese international diplomacy, the Chinese are basically carrying on their business of buying every port, factory or railway that they possibly can. 

• Back in 2020, the yield on global Treasuries was 0.4%, and negative on money market funds. 
• But the biggest central bank tightening cycle in decades has turned things around completely.
• Bonds offer a significantly higher volatility-adjusted yield, but now face fierce competition from money market funds.

Global cross asset market action is really stretching one’s inventory of analogies – we have already employed the two steps forward, one step back analogy so now we are going to use the traffic in foggy weather one.

It came to me when I was biking to work (big NYC City Bike fan) the other morning and as usual I looked up to the Empire State Bldg. as I rode up Broadway (yes, I know, going against traffic – what else is new).

Some days it is a beautiful sight; the early morning sun striking the top of the spire; other times, low hanging clouds scud across the tip.