Mankind invented a system to cope with the fact that we are so intrinsically lousy at manipulating numbers. It's called the graph.

Quick recap

• It’s the week of the World Economic Forum week, but as geopolitical challenges and a cloudy economic outlook dominate the stage, participants in Davos probably remember previous gatherings with nostalgia.
• Nevertheless, sentiment on risk assets turned this week as markets bid up U.S. and European stocks while volatility and credit spread retraced. Remarkably, despite the many post-Brexit challenges faced by the U.K. at the moment, helped by a weak GBP, its stock market is close to an all-time high.
• Interest rates seem to have reached a top for the time being as ten-year yields are stabilising at around 3% in the U.S. and 1% in Germany.
• China remains the problem child of the world economy as stimulative policies are hardly effective in the face of lockdowns. Investors are preparing for this to continue until the decision on Xi’s third term.

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