Archive for March, 2016

Workers of the World Unite…

Monday, March 7th, 2016

Via Luke Kawa at Bloomberg: March 7, 2016 — 2:34 PM EST Lofty corporate profit margins—and their seeming reluctance to return to longer-term averages—last month had Goldman Sachs Group Inc. thinking about questioning the efficacy of capitalism. But fresh analysis from Goldman's Elad Pashtan's is sure to instill renewed faith in the Invisible ...

Hard Times for Rentier Class

Monday, March 7th, 2016

Via FT: New regulations take toll on Wall Street bonuses Banks are adapting to mass of regulations by hiring more staff Read next: Wall Street bonuses dropped by 9% in 2015 by: Ben McLannahan and Alistair Gray in New York The average bonus paid on Wall Street slipped 9 per cent last year to $146,200, as ...

Overnight Data Preview

Monday, March 7th, 2016

Via Robert Sinche at Amherst Pierpont Securities: NOTE: At noon the WTI Crude Oil front contract is trading at $37.56, above both the trend-line ($36.42) and 100-day MA ($37.11) resistance noted earlier today. BoE Governor Carney testifies on possible impacts of BREXIT while EU Finance Ministers meet to discuss the coordination of ...

Brainard Speech

Monday, March 7th, 2016

Via Jay Morelock at FTN Financial: Today at 2:39 PM Fed Governor Lael Brainard was less dovish than one might expect given the market action in January and February.  She emphasized downside risks to the forecast (asymmetric risk) with regard to low energy prices and a strong dollar and their subsequent (and ...

Oil Technical Levels

Monday, March 7th, 2016

Via Robert Sinche at Amherst Pierpont Securities: Over recent weeks we noted the double-bottom in the WTI crude oil price, followed by a rebound above short-term trend-line resistance, establishing what appears to be a very solid low. While we expected the top-side to be capped by record inventory levels, the rebound ...

FX

Monday, March 7th, 2016

Via Marc Chandler at Brown Brothers Harriman: Drivers in the Week Ahead Investor sentiment has continued to recover after the tumultuous start of  the year. The market is beginning to price in somewhat greater risks of a Fed hike after pricing them nearly completely out The ECB meeting is the major event of the ...

No Fear in Fixed Income

Monday, March 7th, 2016

Via Bloomberg: Yields on $2.5 trillion of euro-area bonds are now negative JPMorgan, Standard Life say repeat of 2015 selloff is unlikely The world’s biggest bond investors are leaving themselves with almost no room for error. More than $2.5 trillion of euro-area government debt all but guarantee losses for buyers. Traders are ramping up ...

Oil Prices Still Rebounding

Monday, March 7th, 2016

Via WSJ: Markets Commodities Oil Markets Oil Prices Lifted by Supply Cut Hopes United Arab Emirates’ energy minister says current prices are forcing suppliers to freeze production By Georgi Kantchev March 7, 2016 5:10 a.m. ET 0 COMMENTS LONDON—Oil prices kicked off the week on the rise Monday on hopes that major producers will curtail supply and ...

What Will ECB Do?

Monday, March 7th, 2016

Via a fully paid up subscriber: Commerze: 20bp depot cut, increase QE by E20bln for 6-mths & poss tiered rate - Soc Gen: See ECB cutting deposit rate by 20bp and extending QE. - BNP: ECB to cut deposit rate by 20bp and increase QE substantially - Nomura: ECB to cut deposit rate by ...

China FX Reserves Decline Less Than Expected

Monday, March 7th, 2016

Via the FT: China’s foreign exchange reserves did not fall as much as expected in February, although Beijing continued to sell dollars to support its currency and stem capital outflows. Foreign exchange reserves dropped $28.59bn to $3.2tn in February, according to central bank data released on Monday. Analysts were expecting a reading ...