Archive for February, 2016

Zero Coupon Dispute at JPM

Sunday, February 28th, 2016

Via FT: 4 hours ago by: Joe Rennison and Kara Scannell in New York JPMorgan Chase sacked the head of its government debt trading desk and another employee after they allegedly circumvented the bank’s compliance procedures following a disagreement in valuing certain trades, said people familiar with the matter. Andrew Lombara, then head of ...

Earnings Slump

Sunday, February 28th, 2016

Via the FT: US economic recovery US first-quarter earnings outlook dims on falling oil Energy company earnings forecast doubles as price of crude oil drops to 13-year low February 26, 2016 by: Nicole Bullock in New York Wall Street analysts have slashed expectations for US earnings in the first quarter as companies grapple with plummeting oil ...

Fiscal Policy Next on Deck

Saturday, February 27th, 2016

Via Bloomberg: G-20 Wants Governments Doing More, and Central Banks Less Finance chiefs from the world’s top economies committed their governments to doing more to boost global growth amid mounting concerns over the potency of monetary policy. In a pledge that will prove easier to write than deliver and may disappoint investors looking ...

B of A to Slash Jobs

Saturday, February 27th, 2016

Via the FT: Bank of America prepares to make investment banking job cuts More than 5 per cent of employees at unit set to go as rivals also prepare to make retrenchments February 25, 2016   by: Alistair Gray in New York Traders at Bank of America are in for an unsettling few weeks as their ...

Core PCE and Spending

Friday, February 26th, 2016

Via Millan Mulraine at TDSecurities: US:  The Economic Picture Becomes a Little Clearer Core PCE rose at a relatively firm 0.3% m/m pace in January, and along with the upward revisions to prior months, the annual pace of core PCE inflation jumped to 1.7% y/y. Personal spending activity also rebounded strongly, advancing at ...

Another Take on Q4 GDP

Friday, February 26th, 2016

Via Stephen Stanley at Amherst Pierpont Securities: Real GDP growth in the fourth quarter was surprisingly revised up from the first print of 0.7% annualized to a 1.0% gain.  However, the divergence from my forecast of +0.3% was entirely accounted for by an upside surprise to inventories.  The monthly data for ...

Q4 GDP Revision

Friday, February 26th, 2016

Via Millan Mulraine at TDSecurities: TD SECURITIES DATAFLASH                    US:  Economic Performance Better Than First Thought Q4 GDP growth was revised higher, as the second estimate was pushed to 1.0% q/q from 0.7% q/q. This was a far better performance than the market consensus for a downgrade in the GDP estimate to 0.4% q/q. The ...

What to Watch Today

Friday, February 26th, 2016

Via Bloomberg: WHAT TO WATCH: * (All times New York) * Economic Data * 8:30am: Advance Goods Trade Balance, Jan., est. -$61.2b (prior -$61.513b) * 8:30am: GDP Annualized q/q, 4Q S, est. 0.4% (prior 0.7%) * Personal Consumption, 4Q S, est. 2.2% (prior 2.2%) * GDP Price Index, 4Q S, est. 0.8% (prior 0.8%) * Core PCE q/q, 4Q ...

Sated Appetite

Friday, February 26th, 2016

Via WSJ: By Richard Barley Feb. 26, 2016 5:49 a.m. ET 0 COMMENTS The search for yield ain’t what it used to be. Investors have had a seemingly insatiable appetite for risky securities in recent years, boosted by central bankers wielding ultraloose monetary policy. Now there are signs of indigestion. The problem is that lower bond ...

G 20 Divisions and Tensions

Friday, February 26th, 2016

Via Bloomberg: Laid Bare in Shanghai: G-20 Tensions Over How to Spur Growth 2016-02-26 10:33:08.510 GMT By Enda Curran (Bloomberg) -- Global finance chiefs split over how best to revive the world economy, risking disappointment for investors seeking a coordinated campaign. Differences were laid bare on Friday as central bankers and finance ministers from the Group of 20 ...