<Click on chart for larger image> Business Insider – Here’s why bond yields could go even higher from here US Treasury yields are firming yet again on Tuesday, rising for the third time in four sessions. Sellers have been in control since Thursday’s European Central Bank meeting, which failed to see the extension of the central… Continue reading The Yield Curve Steepens
The Financial Times – Record level of fund managers say bonds and equities overvalued Monetary stimulus causes a record 54% of money managers to say valuations are too high Global bond and stock market valuations have reached their highest level since the early 2000s leading investors to adopt a bearish outlook amid potential frothiness in the… Continue reading 54% Of Money Managers Believe Stocks Are Overvalued
CNBC – Elliott Management founder Singer: Low rates, radical monetary policy have not led to sustainable growth Investors face risks they haven’t seen before due to the aggressive actions of global central bankers, Paul Singer of Elliott Management said Tuesday. Repeating a theme at the Delivering Alpha conference, Singer faulted the Federal Reserve and others for… Continue reading Gloom & Doom From Billionaires
Bloomberg Business – Fed’s Brainard Tells Trump to Back Off After Criticism of Yellen Fed points to market data, where Trump cites rates experience Speaking in Chicago later on Monday, Fed Governor Lael Brainard responded. Obliquely. “The institution is designed to ensure that independence from the executive branch is absolutely the focus of the deliberations of… Continue reading More On Brainard’s Speech
<Click on graphic for largest image> The Washington Post – Middle class incomes had their fastest growth on record last year Middle-class Americans and the poor enjoyed their best year of economic improvement in decades in 2015, the Census Bureau reported Tuesday, a spike that broke a years-long streak of disappointment for American workers but did not… Continue reading Household Incomes Rise
CNBC – UK government did no effective planning for Brexit: Fitch Fitch Ratings painted a gloomy picture of the U.K.’s economic prospects on Tuesday, warning that the British government was poorly prepared for quitting the European Union (EU). “It is very clear that the U.K. government has done no effective contingency planning for Brexit,” Ed Parker, Fitch’s… Continue reading No One Planned For Brexit
<Click on graphic for larger image> Bloomberg.com – Libor’s Reaching Point of Pain for Companies With Big Debt Loads Around $230 billion of loans could reset at higher rates Rising rates would add to trouble as U.S. company profits fall Short-term borrowing rates are rising to the point where some heavily indebted U.S. companies can no longer… Continue reading Is LIBOR’s Rise Starting To Hurt?
<Click on graphic for larger image> The Wall Street Journal – Central Banks’ Prized Independence May Be a Hindrance in Managing Inflation Advocates of policy cooperation with governments say risk of political influence is exaggerated In their battle against high inflation, governments granted significant independence to central banks over recent decades. Now, some economists argue that… Continue reading Inflation Expectations
<Click on chart for larger image> The Financial Times – The Swiss and negative rates: how is the experiment going? Swiss banks and consumers have adjusted to negative rates but concern about long-term pain is brewing On January 15 last year, their stable economic lives were shattered by news the Swiss National Bank had abandoned its cap… Continue reading Negative Swiss Rates
<Click on chart for larger image> Comment As the chart above shows, Clinton’s odds of winning the election took a bit of a hit after her medical incident at the 9/11 memorial Sunday morning. We detailed this in more depth yesterday. Bloomberg.com – Citi: People Aren’t Taking the Possibility of a Trump Presidency Serious Enough… Continue reading An Election Update
The Wall Street Journal – On Bank of England’s Shopping List: Apple, Daimler Bonds Central bank includes bonds of many corporations based overseas among those it may buy in stimulus program U.S. tech giant Apple Inc. and German auto maker Daimler AG are among a host of non-British companies whose debt is eligible for the Bank… Continue reading More On The Perversion Of Capitalism