Archive for July, 2016
Sunday, July 24th, 2016
Via the WSJ:
By Jon Sindreu
July 24, 2016 5:39 p.m. ET
Plummeting bond yields are enabling some cash-strapped governments to reduce their deficits and potentially ease austerity measures.
Spain is the trend’s latest beneficiary: It sold a three-year bond with a negative yield for the first time. That is a balm as the ...
Posted in Uncategorized | Comments Off on The Fruits of Low Rates
Sunday, July 24th, 2016
Via the Japan Times:
Lew tells Aso currency devaluation war should be avoided
Jul 23, 2016
CHENGDU, CHINA – U.S. Treasury Secretary Jack Lew stressed the importance of avoiding competitive currency devaluations in a meeting with Finance Minister Taro Aso in Chengdu, China, on Saturday, according to U.S. Treasury officials.
Lew drove ...
Posted in Uncategorized | Comments Off on Avoiding the Race to the Bottom
Saturday, July 23rd, 2016
Via Bloomberg:
July 23, 2016 — 12:00 AM EDT
Futures traders rebuild wagers on interest-rate hike in 2016
Policy makers to meet for first time since U.K. referendum
To the federal fund futures market, it’s like Brexit never happened.
The implied probability that the Federal Reserve will raise interest rates by year-end touched 47 percent ...
Posted in Uncategorized | Comments Off on Full Circle
Saturday, July 23rd, 2016
The global economy has been mired in a murky malaise for years. One would think that officialdom would consider policy measures which would encourage risk taking,particularly in the aftermath of the Great Recession which has left the world a more risk averse place. Against that background, German Finance Minister Schaeuble ...
Posted in Uncategorized | Comments Off on Financial Transaction Tax
Saturday, July 23rd, 2016
Via Blomberg:
Toru Fujioka
July 23, 2016 — 3:18 AM EDT
Bank of Japan Governor Haruhiko Kuroda reiterated that the central bank is prepared to step up stimulus if needed, while noting again that so-called helicopter money is prohibited.
“We have said we will check risks in the economy and prices and expand monetary ...
Posted in Uncategorized | Comments Off on Kuroda Talks of Stimulus But Not Helicopters
Saturday, July 23rd, 2016
Via WSJ:
By Alison Sider
July 23, 2016 5:30 a.m. ET
0 COMMENTS
Oil companies counted on American drivers hitting the road this summer to reduce the glut of fuel in storage, but that hasn’t happened, and a continuing buildup portends dismal second-quarter earnings due out soon.
Since crude prices plunged in 2014, giants like ...
Posted in Uncategorized | Comments Off on Refiners Still Bleeding
Friday, July 22nd, 2016
Via WSJ:
By Lynn Cook and
Alison Sider
July 22, 2016 1:51 p.m. ET
0 COMMENTS
Energy companies continued to cut thousands of jobs during the second quarter, even though many chief executives are now voicing optimism that the oil market crash is ending and a rebound in drilling is afoot.
Although the heads of Halliburton ...
Posted in Uncategorized | Comments Off on Slashing Jobs
Friday, July 22nd, 2016
Via Bloomberg:
Rich Miller RichMiller28
July 22, 2016 — 7:00 AM EDT
Americans are about as wealthy as they've ever been—and that's a worry?
Yup, say veteran economists Daniel Thornton and Joe Carson. They're concerned that the swelling of wealth could prove unsustainable because it's far outstripped the growth of the ...
Posted in Uncategorized | Comments Off on Wealth Bubble Warning
Friday, July 22nd, 2016
Via Marc Chandler at Brown Brothers Harriman:
Sterling Pounded as Flash PMIs Show Brexit Impact Localilzed
In what Markit said would be a one-off, a flash PMI reading for the UK was made available; the news was not pleasant
The small declines posted in by the eurozone aggregate readings pale ...
Posted in Uncategorized | Comments Off on FX
Friday, July 22nd, 2016
Via Bloomberg:
Liz McCormick
mccormickliz
Hugh Son
Hugh_Son
July 21, 2016 — 4:15 PM EDT
Shift would leave BNY Mellon dominating niche of repo market
Rising cost of transactions sparks move, seen by end of 2017
JPMorgan Chase & Co. plans to exit the business of settling government securities for most dealers by the end of 2017, including ...
Posted in Uncategorized | Comments Off on JPMorgan to Stop Settling Government Securities For Dealers