<Click on graphic for larger image> Bloomberg.com – ECB Said to Build Taper Consensus as QE Decision Time Nears The European Central Bank will probably gradually wind down bond purchases before the conclusion of quantitative easing, and may do so in steps of 10 billion euros ($11.2 billion) a month, according to euro-zone central-bank officials.… Continue reading Rumors Of Tapering
<Click on graphic for larger image> Bloomberg.com – Narayana Kocherlakota: Why Americans Feel Poor, in One Chart Economists measure standards of living in many ways. Among the most common is to look at the change in the value of goods and services produced by a country, adjusted for inflation and for population growth. This measure,… Continue reading Measuring Prosperity In The U.S.
Business Insider – One Fed member’s swing to outspoken dissenter challenges the central bank’s view on bubbles What should investors make of the rather surprising hawkish dissent from the Federal Reserve Bank of Boston’s once-uber dovish president, Eric Rosengren?…A closer look at Rosengren’s own research into the subject of whether monetary policy can and should… Continue reading Rosengren On The Fed’s Third Mandate
Bloomberg.com – Fed May Face Makeover Whether Trump or Clinton Wins White House The Federal Reserve may be headed for a shakeup regardless of who wins the 2016 election, though Hillary Clinton is seen as less likely to demand radical change than Donald Trump. Clinton, a Democrat, has called for greater diversity at the U.S.… Continue reading What Does The Future Hold For The Federal Reserve After The Election?
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<Click on chart for larger image> Bloomberg.com – Stocks Worldwide and Bond Yields Finally Moved in Tandem Global equities moved in the same direction as U.S. government bond yields last week for the first time since July. Concern that troubles at European banks could spread and derail economic growth pushed the MSCI All-Country World Index… Continue reading The Correlation Between Stocks & Bonds
MoneyBeat (WSJ Blog) – Why Corporate America’s Earnings Recession May Be Near an End Companies in the S&P 500 have reported declining profits for five straight quarters. Analysts don’t expect that trend to have reversed in the third quarter. But there is good reason to believe that the earnings recession may actually have ended in… Continue reading Earnings Estimates
<Click on graphic for larger image> The Federal Reserve Bank of Atlanta – GDPNow The GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the third quarter of 2016 is 2.2 percent on October 3, down from 2.4 percent on September 30. After this morning’s construction spending report from the U.S. Census… Continue reading A Look At Q3 GDP Expectations
The Telegraph – It’s not just Deutsche. European banking is utterly broken A little while back I somewhat unwisely penned a column declaring the financial crisis essentially over. All I meant by this was that with the return of full employment and rising living standards, most of the economic wounds of the crisis had healed,… Continue reading Is Deutsche Bank The Canary In The Coal Mine?
The Financial Times – Don’t bet on Russia capping oil output In spite of the sharp fall in the price of oil since 2014, the Russian oil industry is healthy and production, confounding many predictions to the contrary, is growing steadily. Indeed, boosted by the launch of several greenfields this month, Russian oil output has… Continue reading More Doubt On Capping Oil Output
Bloomberg.com – Fed’s Dudley Advises Caution in Raising Interest Rates Federal Reserve Bank of New York President William Dudley suggested the central bank should be cautious in raising interest rates, given limits on its ability to respond to a recession with borrowing costs close to zero. Noting concerns from some economists that the risk of a… Continue reading Fedspeak
The Wall Street Journal – Italy Markets Debut 50-Year Bond Italy started marketing its debut 50-year bond Tuesday in a key test of how much economic stress investors will overlook amid the global hunt for yield. There were over €12.5 billion ($14.03 billion) of orders for the 2067 bonds midway through the European morning, according… Continue reading The Hunt For Yield As Italy Issues 50-Year Bond