Archive for May, 2015
Thursday, May 21st, 2015
Via the WSJ:
Federal Reserve Chairman Janet Yellen may soon be spending a lot more time testifying on Capitol Hill.
The heads of the Senate Banking Committee and House Financial Services Committee are asking Ms. Yellen to double her appearances before their panels each year.
They want her testify twice a year to ...
Posted in Uncategorized | Comments Off on Congress Requests More Yellen Testimony
Thursday, May 21st, 2015
Via Bloomberg:
Germany’s economy stuttered again this month, with a gauge of output falling more than economists forecast to the lowest this year.
Markit Economics said its composite index of services and manufacturing dropped to 52.8 from 54.1 in April. While that’s above the 50 mark that divides expansion from contraction, it’s ...
Posted in Uncategorized | Comments Off on German Economy Loses Some Momentum
Thursday, May 21st, 2015
Prices of Treasury coupon securities have posted modest gains in a very quiet overnight session. I had marked the 10 year note at 2.25 at 745PM and I see it currently at 2.227. One dealer noted some very modest buying of the 10 year sector by central banks and commented ...
Posted in Uncategorized | Comments Off on Treasury market Update
Thursday, May 21st, 2015
Via Kit Juckes at Socgen:
<http://www.sgresearch.com/r/?id=hdcb5abd,12b988ba,12b988bb&p1=136122&p2=9edc8108ce0784ba225047009407f7c0>
The dollar index (DXY) continues to flirt furiously with the idea of breaking above its 100-day moving average, which today is at 95.58. It's only a line on a chart but it is holding the dollar's revival back and the news flow yesterday did nothing to ...
Posted in Uncategorized | Comments Off on The Mighty Greenback and FOMC Policy
Wednesday, May 20th, 2015
Via Stephen Stanley at Amherst Pierpont Securities:
Most of the newsworthy substance in the April FOMC minutes was accurately signaled in the FOMC statement. The economy had slowed, but the majority of the Committee felt that the weakness was transitory. Inflation was still too low, but Committee members remained confident that ...
Posted in Uncategorized | Comments Off on Another Take on Minutes
Wednesday, May 20th, 2015
Via Merrill Lynch Research:
Our estimates show that credit fundamentals of public US high grade non-financial issuers deteriorated during 1Q-2015.
This was the result of a combination of brisk borrowing pace, weaker earnings growth and relatively lower cash balances.
Hence net and gross leverage in 1Q rose to 2.05 and 2.53x, respectively, from ...
Posted in Uncategorized | Comments Off on Eclectic Evening Economic Entertainment
Wednesday, May 20th, 2015
This is an interesting piece by Pedro Nicolai Da Costa regarding discussions in the just released minutes regarding the neutral funds funds rate. He opens with this:
Did the financial crisis and Great Recession permanently slow the U.S. economy’s growth potential, thereby lowering the point at which the Federal Reserve’s benchmark ...
Posted in Uncategorized | 5 Comments »
Wednesday, May 20th, 2015
Via Eric Green at TDSecurities:
Quick take from the Minutes:
Discussion was all over the place which is to be expected at a time when inflation is low, GDP came in below the IOER rate, and the prevailing bias was to tighten soon with each meeting a “live one.” Key takeaways:
First, no ...
Posted in Uncategorized | 2 Comments »
Wednesday, May 20th, 2015
Via Robert Sinche at Amherst Pierpont Securities:
CHINA: The early read on economic activity in May will come from the HSBC/Markit Manufacturing PMI; the BBerg consensus is for a modest rise to 49.3 from a 12-month low of 48.9 in March.
NEW ZEALAND: One of my favorite measures is the Net Migration ...
Posted in Uncategorized | Comments Off on Overnight Preview
Wednesday, May 20th, 2015
Via Robert Sinche at Amherst Pierpont Securities:
Company reports continue to mention the negative impact of the stronger USD on both revenues and profits as foreign revenues/earnings are translated back into USDs during the first quarter of 2015. Obviously, this varies by individual companies based on any hedge program that might ...
Posted in Uncategorized | Comments Off on Strong Dollar and Profits