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October 3, 2016
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Comment Yesterday we hosted a conference call titled Elections And Central Banks. The mp3 replay, webcast replay and handout are below. A transcript of the call will be available on Monday. [audio:https://www.biancoresearch.com/bianco/SubscriberArea/092916.mp3|titles=Conference Call ] [pageview class=”PDFViewer” url=”https://www.biancoresearch.com/bianco/wp-content/plugins/PDFViewer/plugin.php?id=325″] Webcast (download if flash video does not work below) [hana-flv-player video=”https://www.biancoresearch.com/bianco/SubscriberArea/092916.flv” width=”600″ height=”495″ description=”” player=”3″ autoload=”false” autoplay=”false”… Continue reading Elections And Central Banks
Bloomberg Business – Some Deutsche Bank Clients Reduce Collateral on Trades A number of funds that clear derivatives trades with Deutsche Bank AG have withdrawn some excess cash and positions held at the lender, a sign of counterparties’ mounting concerns about doing business with Europe’s largest investment bank. While the vast majority of Deutsche Bank’s more… Continue reading A Lehman Moment For Deutsche Bank?
Bloomberg Business – Yellen Can’t Hide the Struggle Inside the Fed “We do not discuss politics at our meetings.” It isn’t easy running a central bank, especially during an election campaign, and even more so during this campaign, when there’s a deep division within the economics profession over whether U.S. interest rates are too low. As… Continue reading The Fed And Politics
MarketWatch.com – Deutsche Bank CEO blames ‘market forces’ for crisis Deutsche Bank AG Chief Executive John Cryan on Friday sought to calm employees about the soundness of the bank, after shares fell to fresh record lows on reports clients had started to leave the bank. “Our bank has become object of heavy speculation. Ongoing rumours are… Continue reading Deutsche Bank Blames “Market Forces” For Its Crisis
The Economist – Taking it to II How central banks are distorting the corporate-bond and equity markets .. When companies seek to issue new bonds, the prices and yields of their existing bonds are an important benchmark. To the extent that central-bank actions lower the cost of capital of businesses within the programme, it must give… Continue reading More On Central Banks Distorting Markets
Reuters –Yellen says Fed purchases of stocks, corporate bonds could help in a downturn The Federal Reserve might be able to help the U.S. economy in a future downturn if it could buy stocks and corporate bonds, Fed Chair Janet Yellen said on Thursday. Speaking via video conference with bankers in Kansas City, Yellen said… Continue reading Yellen Says The Fed Can Still Help In Future Downturn
<Click on graphic for larger image> David Stockman’s Contra Corner – The Great Divergence: Orders Not So Durable, Stock Prices Bubble Higher “U.S. factories reported flat demand for big-ticket goods in August, suggesting the economy continues to be restrained by sluggish business spending,” reported The Wall Street Journal. They got that right (for a change)! In… Continue reading Durable Goods And Stock Prices
CNBC – Fed’s Esther George: It’s time to remove some accommodation Kansas City Federal Reserve President Esther George told CNBC the most recent economic data on Thursday shows growth continuing to move forward. In a “Squawk Box” interview, she said it’s time to remove some accommodation. She added that a Fed funds overnight lending rate of 1… Continue reading Fed President Esther George Wants To Raise Rates
The Guardian – Quantitative easing has pernicious effects that favour the wealthy It is time to start calling QE what it is: a hidden tax on the wealth of middle-class savers and pensioners QE enriches those who have already accumulated enough assets such that they generate sufficient income without the need to liquidate their accumulated capital… Continue reading Why QE Helps The Wealthy And Is A Hidden Tax On The Middle Class
The Financial Times – Mohamed El-Erian: Yet more years of low but stable growth is unsustainable The longer the economic malaise endures, the greater the influence of anger politics Last week’s downward revisions to the Federal Reserve’s growth and interest rate projections are yet another reminder of the growing consensus in favour of a prolonging of the… Continue reading Low Growth In The Global Economy Is Unsustainable
CNBC – Deutsche Bank economist: Why the Fed has gotten it wrong time and time again Where have all the rate hikes gone? At this time two years ago, the median projection of the members of the Federal Open Market Committee was for the appropriate target federal funds rate to be 2.875 percent at the end of… Continue reading Why The Fed Has Been So Wrong