The Wall Street Journal – FBI Won’t Recommend Criminal Charges Against Hillary Clinton Over Private Email Use The head of the FBI on Tuesday recommended against charging Hillary Clinton for mishandling classified information while she was secretary of state, even as he harshly criticized the presumptive Democratic presidential nominee for being “extremely careless” with the… Continue reading Another Lesson About Betting Markets
The Wall Street Journal – Martin Feldstein: Where the Fed Will Be When the Next Downturn Comes The easy-money policy may bump inflation over 3% in the next few years, setting up interest-rate increases. Testifying before the Senate on June 21, Federal Reserve Chair Janet Yellen said the chances of the U.S. economy sliding into… Continue reading What Can The Fed Do With Rates At Zero?
The Wall Street Journal – What to Watch in the Fed Minutes Federal Reserve officials held interest rates steady at their June 14-15 meeting amid worries about a sharp slowdown in hiring the previous month, and the impending U.K. vote on whether to leave the European Union. The minutes of their gathering, to be released… Continue reading The FOMC Minutes Are Released Today
The Telegraph (UK) – Property market turmoil has eerie echoes of start of financial crisis The first sign that things were unravelling was when American investment bank Bear Stearns prevented investors taking money out of two mortgage-related hedge funds in the summer of 2007. Eventually, both were liquidated. At the time, the move seemed largely… Continue reading Market Stresses Begin To Show From Brexit Vote
Janus Capital – Bill Gross: Just A Game If only Fed Governors and Presidents understood a little bit more about Monopoly, and a tad less about outdated historical models such as the Taylor Rule and the Phillips Curve, then our economy and its future prospects might be a little better off…In that game, capitalists travel… Continue reading Bill Gross Speaks
<Click on chart for larger image> The Wall Street Journal – Low-Yield Blues? Corporate Bonds Are the Last Ones Paying The collapse in yields world-wide has left U.S. corporate bonds as one of the last places on earth to get relatively safe, steady income. U.S. corporate bonds account for about 12% of all investment-grade debt… Continue reading Reaching For Yield
Bloomberg.com – World’s Top Oil Trader Says Prices Won’t Rise Much Further Oil prices won’t rise much further over the next year and a half as demand growth slows and refiners comfortably meet gasoline consumption, according to the world’s largest independent oil-trading house. “I cannot see the market really roaring ahead,” Vitol Group of Cos.… Continue reading Oil Prices
None Today
Brexit and The Markets A transcript of the June 30, 2016 conference call. Handout Audio [audio:https://www.biancoresearch.com/bianco/SubscriberArea/063016.mp3|titles=Conference Call ] Webcast (download if flash video does not work below) [hana-flv-player video=”https://www.biancoresearch.com/bianco/SubscriberArea/063016.flv” width=”600″ height=”495″ description=”” player=”3″ autoload=”false” autoplay=”false” loop=”false” autorewind=”false” skin=”functional” /] [pageview class=”PDFViewer” url=”https://www.biancoresearch.com/bianco/wp-content/plugins/PDFViewer/plugin.php?id=313″]
Comment From Trump’s nomination to Sanders’s surprising strength, the Brexit vote, the nationalist movement in Europe, almost nothing in politics is going according to the generally accepted playbooks. We discussed this in our conference call last week, arguing that this is the legacy of 2008 and the bailouts. When things got bad in the Fall… Continue reading Nothing In Politics Is Playing Out As Expected
CNBC – Capital outflows driven by residents, Goldman Sachs says China has suffered from outflows from its foreign reserves for months. Goldman Sachs and Standard & Poor’s can’t agree why. Capital outflows from the world’s second-largest economy have been sizeable recently, as reflected in the country’s foreign exchange reserves, which analysts use in the absence… Continue reading Capital Flows In China
The Financial Times – Goldman Sachs tells its asset managers to tighten belts Goldman Sachs has told staff at its asset management division GSAM to tighten their belts, amid outflows and poor performance from some of its largest funds. Executives have issued an edict that GSAM’s 2,000 employees must curtail spending, including a ban on… Continue reading Active vs Passive Money Managers