The Financial Times – Mnuchin: Breaking up big banks would be a ‘huge mistake’ Steven Mnuchin, the US Treasury Secretary, has said he does not support the separation of investment banks from other parts of the business even after the Trump campaign advocated the introduction of a 21st Century version of the now-defunct Glass-Steagall law. Speaking… Continue reading Steven Mnuchin vs Elizabeth Warren
MarketWatch.com – Mark Hulbert: Market sentiment during Watergate shows how stocks might react to Trump Impeachment is not good for stocks. I would have thought that it’s not necessary to point this out, but I’m clearly wrong. A cavalier attitude towards impeachment has emerged both among the newsletters I monitor as well as on financial… Continue reading Market Sentiment During Watergate
The Financial Times – Matthew C. Klein: Bond traders stopped fighting the Fed because they won Central bankers were too optimistic about longer term outlook for US rates “Don’t fight the Fed” was good advice for anyone tempted to test Paul Volcker’s resolve in taming inflation but it hasn’t worked out so well for those who… Continue reading Bond Traders Fought The Fed And Won
The Wall Street Journal – ECB Wary of Repeat of Fed’s ‘Taper Tantrum’ The European Central Bank is focused on avoiding a policy error committed four years ago by its big brother, the Federal Reserve. When the Fed indicated—on May 21, 2013—that it would gradually wind down its $85 billion-a-month bond-buying program, asset prices and currencies… Continue reading The ECB Doesn’t Want To Make The Same Mistakes The Fed Made
The New York Times – In Tumult of Trump, Jon Corzine Seeks a Wall Street Comeback In his first interview since the MF Global meltdown began, Mr. Corzine detailed his plans for a new hedge fund, saying that he will seek to anticipate what often seems unpredictable: how the Trump administration and other world leaders will… Continue reading Jon Corzine Outlines His Plan For His New Hedge Fund
Bloomberg Gadfly – Lisa Abramowicz: The Consumer Debt Blind Spot The UBS report highlights how there’s quite a bit of overlap between consumers who have auto loans and credit-card debt, not to mention mortgage, student and medical obligations. Lenders are recognizing this, with Santander Consumer USA recently deciding to stop taking payments by credit cards. Financial firms… Continue reading More On Consumer Debt
CNBC – David Beckworth: Trump’s appointments to the Fed must understand the global economy As the world’s main superpower, the United States projects its influence abroad through its military, economic, and cultural clout. It also exerts significant sway over global monetary conditions and cross-country financial flows.That is why President Trump’s upcoming appointments to the Federal Reserve may… Continue reading The Importance Of Trump’s Fed Appointments
CNBC – This is the most ‘crowded’ trade on the planet right now * The ‘long Nasdaq’ trade replaces the bullish U.S. dollar trade as the most crowded position in the world, according to Bank of America Merrill Lynch’s global fund managers survey. * Shares of Apple, Amazon, Facebook and Netflix are all up about 30… Continue reading The Most Concentrated Market Rally In Decades
Financial Times – US banks slide in latest sign of ‘Trump trade’ unwinding Shortly after the opening bell, the KBW banks index slid 2.86 percent in what would be its biggest fall since March 21, according to Bloomberg data. Bank of America, one of the largest US lenders, sold off by 4.4 percent, while JPMorgan… Continue reading Flattening U.S. Treasury Curve Pressuring Banks
Bloomberg – Inflation Isn’t Cooperating With the Fed Weak data could change the course of rate hikes. Eventually, the Fed will return to worries that its repeated failure on the inflation target will entrench expectations on the wrong side of the 2 percent target. But that day is not yet at hand. Be wary that… Continue reading Inflation a Thorn in the Fed’s Side
Bloomberg – Trump Bump in Economy May End Up Squashed by Political Turmoil The Trump bump in the U.S. economy that many forecasters had penciled in for next year is looking increasingly iffy. President Donald Trump’s mounting political difficulties are raising doubts about his ability to push through the tax cuts and infrastructure spending increases… Continue reading What Does Trump’s Turmoil Mean For Economy?