Bloomberg View – Mohamed A. El-Erian: The Messages Markets Sent Politicians in November The strong rally in stocks and the dollar, along with the notable rise in yields on government bonds, demonstrate that markets have embraced the likelihood of higher growth and higher inflation for the U.S. In doing so, they have differentiated the U.S. from… Continue reading Markets And Politics
<Click on graphic for larger image> Bloomberg Gadfly – Yesterday’s Bank Crisis, Today The curse of the rear-view mirror has struck again. The Bank of England’s stress tests of U.K. banks were the toughest yet, but didn’t model the impact of the Brexit negotiations or a withdrawal from the EU. Rather than bickering over whether such… Continue reading U.K. Banks
<Click on graphic for larger image> The Wall Street Journal – Corporate Earnings, U.S. GDP Experience Stout Expansions Corporate profits have been pressured in recent years by various forces including weak global growth, a strong dollar that damps demand for U.S. exports and slumping commodity prices that battered the energy and agriculture sectors. But business… Continue reading Corporate Earnings And GDP
Project Syndicate – Michael Spence: Donald Trump and the New Economic Order Since the end of World War II, the hierarchy of economic priorities has been relatively clear. At the top was creating an open, innovative, and dynamic market-driven global economy, in which all countries can (in principal) thrive and grow. Coming in second –… Continue reading The New Economic Order
Comment On December 1, 2016 at 9 AM CT (10 AM ET, 7 AM PT and 15:00 GMT) Bianco Research, in conjunction with Arbor Research & Trading, will be hosting a webcast/teleconference moderated by Jim Bianco. Please join us Thursday as we discuss the markets in the wake of the election. Stocks, interest rates,… Continue reading What to Make of the Trump Reflation Rally
Reuters – Exclusive: ECB ready to buy more Italian bonds if referendum rocks market – sources The European Central Bank is ready to temporarily step up purchases of Italian government bonds if the result of a crucial referendum on Sunday sharply drives up borrowing costs for the euro zone’s largest debtor, central bank sources told… Continue reading The ECB Is Ready For Italy’s Vote Sunday
<Click on chart for larger image> CNBC – Italian banking stocks drop further ahead of country’s crucial referendum Italian banking stocks led the main European index lower on Monday as fears continued to mount over how the struggling sector could cope with a No vote in Sunday’s referendum. Italian Prime Minister Matteo Renzi has effectively… Continue reading Italian Banks And Sunday’s Vote
<Click on graphic for larger image> The Wall Street Journal – Rising Rates Could Be a Chinese Phenomenon, Too With inflation reviving, authorities may just have to stand aside in the face of rising bond yields With commodities up, the yuan falling and Chinese real estate still mid-froth, it is no surprise to see inflation finally… Continue reading Why Are Chinese Rates Heading Higher?
<Click on graphic for larger image> Bloomberg.com – Bank Stocks Have Gained $300 Billion in 25 Days Thanks to Trump Group’s market value on course for record monthly increase Little sign of fear in bank ETF’s options, short interest Optimism is higher than ever on a group of stocks that have specialized in disappointment. Already… Continue reading More On The (Non-Italian) Bank Stock Rally
<Click on graphic for larger image> MoneyBeat (WSJ Blog) – It’s Not Just Inflation: Uncertainty is Playing a Big Role in the Bond Rout In this month’s Treasury selloff, uncertainty may be playing a big role. The world is getting riskier, so some analysts believe bonds have yet lower to go. Inflation is widely believed… Continue reading Term Premium’s Role In Rising Rates
<Click on chart for larger image> The Financial Times – South Korean President Park Geun-hye offers to step down Opposition accuses scandal-mired leader of ploy to delay impeachment Park Geun-hye has offered to step down as South Korea’s president, asking parliament to come up with a plan to ensure stable regime change amid a corruption… Continue reading Another Establishment Politician Fighting Back A Populist Movement