Archive for August, 2016
Monday, August 15th, 2016
Via WSJ:
By
Steven Russolillo
Updated Aug. 14, 2016 8:23 p.m. ET
19 COMMENTS
Lower your sights.
The U.S. stock market’s trifecta of record index values last week, its first since 1999, comes with a glaring warning that isn’t getting as much attention as it deserves: rising valuations. This has important implications ...
Posted in Uncategorized | Comments Off on Valuation Problem
Monday, August 15th, 2016
Via Bloomberg:
Neil Callanan
ncallanan
August 15, 2016 — 2:05 AM EDT
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U.K. pension-fund liabilities rose to a record $1.3 trillion
Younger workers will have to save more or work for longer
Britain’s millennials, already suffering for the economic mistakes of the past, now face the prospect of having to pay for ...
Posted in Uncategorized | Comments Off on Collateral Damage
Monday, August 15th, 2016
Via Kit Juckes at SocGen:
<http://www.sgmarkets.com/r/?id=h11261799,18005029,1800502a&p1=136122&p2=4b388736d5e32309403d6db6b85e1f35>
A perfect Monday morning in London...... It will be hotter later but get up and out...
Friday's US retail sales report is more volatile and less reliable than the labour market data that were released a week earlier, but the data were weak and the market mood ...
Posted in Uncategorized | Comments Off on Early FX
Saturday, August 13th, 2016
Via the Federal Reserve Bank of Saint Louis:
Tuesday, August 09, 2016
By William Dupor, Assistant Vice President and Economist
The most recent U.S. expansion, however lackluster, entered its eighth year in June.1 In anticipation of the possibility (or perhaps inevitability) of another recession, observers have remarked on how and whether countercyclical fiscal policy ...
Posted in Uncategorized | Comments Off on Saint Louis Fed Casts Aspersions on Stimulus Spending
Friday, August 12th, 2016
Via Matt Boes at Bloomberg:
Matthew Boesler
boes_
August 12, 2016 — 4:42 PM EDT
Over the last year, Federal Reserve officials have dramatically curtailed ambitions for interest-rate increases, even as inflation has risen and unemployment has declined.
So what gives?
Perhaps just as important as the increased attention being paid to headwinds from abroad are ...
Posted in Uncategorized | Comments Off on Quiescent Inflation and FOMC
Friday, August 12th, 2016
Via WSJ:
By RICHARD BARLEY
Updated Aug. 10, 2016 9:10 a.m. ET
Central banks have always been able to make waves in markets. But never have they had such far-reaching effects, nor so quickly. The world of bonds is being turned upside down as a result.
Monetary policy traditionally has involved adjusting a short-term ...
Posted in Uncategorized | Comments Off on Zero Coupons Above Par Are Unnatural Financial Acts
Friday, August 12th, 2016
Via WSJ:
By
JOHN CARNEY
Aug 12, 2016 12:09 pm ET
Interest rates in a significant part of the U.S. asset-backed commercial paper market have erupted higher in recent weeks.
The rate on 90-day asset-backed commercial paper spiked to 0.97% Wednesday before slipping back down to 0.91% on Thursday, according to the Federal Reserve. That ...
Posted in Uncategorized | Comments Off on Short Maturity Asset Backed Rates Rising
Friday, August 12th, 2016
Via TDSecurities:
TD SECURITIES DATAFLASH
US: July Retail Sales Miss Leaves Growth Momentum on a Downbeat Note
* July headline and core retail sales were unchanged, indicating a weak footing at the start of the third quarter following on the heels of upward revisions to June. TD and consensus expectations ...
Posted in Uncategorized | Comments Off on Retail Sales
Friday, August 12th, 2016
Via Bloomberg:
German cooperative sets -0.4% rate on funds over EU100,000
Move comes two weeks after ECB says no risk of cash hoarding
When the European Central Bank introduced a negative interest rate on lenders’ deposits two years ago, few thought things would ever go this far.
This week, a German cooperative ...
Posted in Uncategorized | Comments Off on Negative Rates for Volk
Friday, August 12th, 2016
Via WSJ:
By James Mackintosh
Updated Aug. 11, 2016 4:27 p.m. ET
Britain has taken over from Japan as the world’s wildest bond market, raising new questions about the distortions being caused by central banks.
The soaring price (and so plunging yield) of the 30-year gilt means it has now returned the same 31% ...
Posted in Uncategorized | Comments Off on Irrational Exuberance in Gilt market