Archive for February, 2015
Saturday, February 28th, 2015
Via Reuters:
(Reuters) - Activity in China's factory sector contracted for a second straight month in February on unsteady exports and slowing investment, an official survey showed on Sunday, reinforcing bets that more policy loosening is needed to lift the economy.
The official Purchasing Managers' Index (PMI) inched up to 49.9 in ...
Posted in Uncategorized | Comments Off on China PMI Contracts Again
Saturday, February 28th, 2015
Earlier today I posted this on the PBOC decision to once again cut rates in China in response to weak growth. It dawned on me that market participants have assigned to central banker an aura of invincibility and omniscience beyond that which they deserve. Central banks do not have perfect ...
Posted in Uncategorized | Comments Off on On the New Era of Central Banking
Saturday, February 28th, 2015
Via the WSJ:
By
Eric Morath and
Jeffrey Sparshott
Updated Feb. 27, 2015 8:48 p.m. ET
39 COMMENTS
Wage growth is breaking out in an unexpected corner of the U.S. economy: the nation’s restaurants and bars.
Food-service employment has surged since the recession ended nearly six years ago, growing twice as fast as overall payrolls. But those ...
Posted in Uncategorized | Comments Off on Emerging Wage Pressures
Saturday, February 28th, 2015
Via the WSJ:
BEIJING--China cut interest rates for the second time in four months in a fresh sign of Beijing’s concern over slowing growth.
China’s central bank said Saturday evening that it would reduce its benchmark lending rate and deposit rate each by 0.25 percentage point to lower domestic companies’ borrowing costs. ...
Posted in Uncategorized | Comments Off on China Cuts Rates….Again
Saturday, February 28th, 2015
Yesterday I posted this and this on comments by New York Fed President William Dudley on level of long term rates as the FOMC hikes short term rates. The gist of his comments is that there will be no Greenspan like "conundrum" which keeps long rates low as the FOMC ...
Posted in Uncategorized | Comments Off on Bank of America Merrill Lynch on Dudley COmments
Friday, February 27th, 2015
Via Robert Sinche at Amherst Pierpont Securities:
Monday March 2 will bring the monthly PMI or equivalent reports for February most major economies, with highlights noted below.
AUSTRALIA: The AiG Performance of Manufacturing index has been below 50 in 13 of the last 15 months, with the high in the last 15 ...
Posted in Uncategorized | Comments Off on Weekend Preview
Friday, February 27th, 2015
This is a guest post from my friend and former colleague Stephen Liddy.
Unfortunately what Steve wrote does not transfer well to this low rent blog but if you take the time the table is readable. It is my fault and not his.
Via Stephen Liddy a fully paid up subscriber.
With NFP ...
Posted in Uncategorized | Comments Off on Trading labor Report Week
Friday, February 27th, 2015
Via TDSecurities:
No shift here. NY Fed President Dudley just made his first comments since early December and these may feel dovish, but they are not new and merely reiterate a risk management approach to raising rates that was front and center at the January FOMC meeting. Much of what he ...
Posted in Uncategorized | 1 Comment »
Friday, February 27th, 2015
This is an interesting Dow Jones story which contains some verbal nuggets from New York Federal Reserve Bank President Dudley. Dudley would prefer patience regarding the timing of rate hikes and would raise rates later rather than sooner.
However, he notes that long rates are too low and if those rates ...
Posted in Uncategorized | Comments Off on Dudley on the Rate Cycle and Too Low Long Rates
Friday, February 27th, 2015
Via TDSecurities:
The second iteration of Q4 GDP came in slightly better than the markets expected, with the downward revision less severe at 2.2% from 2.6%. Personal consumption was revised just a tad lower to 4.2% from 4.3%, but final sales to domestic purchasers were revised higher to 3.2% from 3.2%, ...
Posted in Uncategorized | Comments Off on GDP