The Financial Times – IEA: Oil investment drought threatens price surge Short-termism will catch up with supply by 2020, agency warns Drastic cuts in oil industry investment risk creating a shortfall in supply that by 2020 will expose the market to a surge in prices, the International Energy Agency has warned. Despite a chorus of analysts… Continue reading The Oil Market
The Wall Street Journal – The Growing Gap Between Jobless Claims and Job Losses Just what does it say about the U.S. labor market? Here are a few ideas There is a growing gap between the number of workers losing their jobs and the number applying for unemployment benefits, and it’s not entirely clear why. Layoffs… Continue reading Jobless Claims vs. Layoffs
The Financial Times – Danielle DiMartino Booth: Investors spy clouds on the bond market horizon A long era of calm is coming to an end Global bond investors could be in for a nasty wake-up call. Amid all the euphoria surrounding Trumponomics, traditionally dovish US Federal Reserve officials have begun to sound like passionate hawks. Not… Continue reading More On The Fed’s Balance Sheet
Bloomberg.com – Juppe Exit Leaves Party to Pick Up Pieces in French Race Republican grandee says it’s too late for him, not for France Candidate Fillon facing criminal charges and calls to quit Alain Juppe’s second departure from France’s fractious election leaves former President Nicolas Sarkozy and other chiefs to pick up the pieces of… Continue reading French Election
The Financial Times – OECD warns of need to escape global ‘low-growth trap’ Static forecasts signal disconnect between business upswing and real economy outlook A strong upswing in business and consumer confidence and buoyant financial markets are not enough to pull the world out of a “low-growth trap”, the OECD said on Tuesday as it released… Continue reading But, Economic Growth is Lagging Inflation
The Financial Times – Market questions: how frothy are equities and junk bonds? Investor optimism running wild as markets focus on central banks How frothy are equity and junk bond valuations looking? Another record-breaking week for equities and a red hot reception for the Snap initial public offering is not the only sign of investor… Continue reading Are Markets Overvalued?
The Wall Street Journal – Why Are Europe’s Small Central Banks Stocking Up Foreign Money? Switzerland’s holdings of foreign assets jumped last month at their fastest pace in over two years Europe’s smaller central banks are loading up on foreign currencies at rates usually associated with periods of intense global stress, highlighting the fragile underpinnings… Continue reading Are Some Central Banks Preparing For A Crisis?
Bloomberg.com – How a $26 Billion Hedge Fund Lures the Beautiful Minds On the warmest February day on record in Cambridge, about 60 students at the Massachusetts Institute of Technology opt to stay inside a dimly lit lobby, crunching data and churning out pages of analysis, rather than enjoy the sunny, summer-like Friday afternoon. No,… Continue reading Hedge Funds Search For The Next Great Manager
The Financial Times – Sweden complains it is collecting too much tax Overpayments made since central bank lowered interest rates to below 0% 2 years ago Sweden’s government has an unusual complaint — it is collecting too much tax. Negative interest rates have made some of the world’s highest taxes a lot less painful as businesses… Continue reading How To Protect Yourself From Negative Rates … Overpay One’s Taxes.
The Financial Times – Mohamed El-Erian: A word of caution on the bond-stock decoupling Equity market optimism is not reflected in bonds. How significant is this divergence? This would not be the first time bond and stock markets have sent different messages; and it would be a bigger potential issue for stock than bond investors who… Continue reading Stock-Bond Decoupling
The Wall Street Journal – Debt Ceiling Adds to U.S. Rate Crosscurrents Decline in bill sales puts downward pressure on yields A long-running standoff in Congress is helping to push down short-term U.S. bond yields, while raising the prospect of more volatility ahead. The yield gap between short-term U.S. Treasury debt and derivatives that track… Continue reading Revisiting The Debt Ceiling
The Financial Times – Bloomberg fights to keep Pimco on Treasury trading platform Battle for bond house’s business illustrates changes in $14tn market Bloomberg is fighting to keep the bond house Pimco as a customer on its platform to buy and sell Treasuries, as the advance of automated trading reshapes the $14tn US government debt… Continue reading Electronic Trading