Julien Ponthus takes a look at the days ahead.

This year’s U.N. climate summit is over.

According to the current commitments of countries, global warming is most likely to rise above 1.5 degrees Celsius over pre-industrial levels, causing catastrophic sea level rises, flooding, and droughts.

Many investors wonder if the world economy isn’t slipping into a new era of high inflation, despite the fact that the leaders around the globe seem to be stuck in the climate change game.

The U.S. Federal Reserve remains miles from an interest rate increase despite U.S. inflation being at its highest level in 30 years. Although the Fed will eventually phase out monetary stimuli, it continues to buy billions of securities each month.

U.S. 10-year real rate — nominal rate plus headline inflation — are close to -5%. That is a level that only experienced traders have seen in the 1970s or early 1980s.

Some investors are unable to believe that the Fed’s inflation story is “transitory”.

A Reuters survey of European economists found that inflation expectations for the euro area are likely to continue exceeding the 2% goal of European Central Bank next year.

The initial shock from Wednesday’s U.S. Inflation data appears to have subsided, but the current dollar is at a 16-month high. Ten year U.S. Treasuries yield is about 15 basis points above the 1.41% price it was quoted two days ago.

However, MSCI’s all-country index is still well within striking distance of the all-time record set earlier this week. The European and Wall Street Futures are both broadly flat. This suggests a calm session.

Japan’s Toshiba, (OTC:), has revealed plans to spinoff two core business units. This follows a similar decision by General Electric (NYSE: )’s will be divided into three public corporations.

Markets should be more informed by Friday’s key developments

– Deutsche Telekom (OTC:) core profit beats estimates; full-year outlook raised

AstraZeneca sells more than $1 Billion in Q3 vaccinations, but makes a very small profit

-Euro zone industrial output due

U.S. Uni. Michigan’s sentiment, conditions, and inflation expectations/JOLTS Job openings