<Click on graphic for larger image> Business Insider – Something odd is happening in China, and it echoes major financial crises of the last 20 years According to a special report released by Deutsche Bank chief economist Zhiwei Zhang and economist Li Zeng, this credit boom has been happening within China’s financial sector, rather than within… Continue reading Chinese Finance
<Click on chart for larger image> The Financial Times – ‘Anyone wanting a June hike should look away now’ So says Luke Bartholomew at Aberdeen Asset Management, in light of the latest disappointing headline number from the US payrolls release. The same can probably be said of anyone who just sold dollars against the euro.… Continue reading Now No Hike Until 2017
<Click on chart for larger image> The Wall Street Journal – Natural Rate is Lower and That Affects Policy, Fed Officials Say Lower rate could challenge Fed’s 2% price target, Fed officials say A small group of Federal Reserve officials warned Thursday a notably decline in a key interest rate variable has serious implications for… Continue reading Revising the Fed’s Dot Chart
<Click on graphic for larger image> The Financial Times – US stock funds suffer $11bn of outflows Redemptions since the beginning of the year top $60bn US equity funds suffered their largest redemptions since the start of the year as investors sought the safety of cash, government debt and gold as sentiment continued to sour… Continue reading Stock Outflows Grow
<Click on graphic for larger image> The Wall Street Journal – The Downside of Hedging Currency Risk for Stock Investors Investors are pulling money out of currency-hedged exchange-traded funds after heavy buying last year The U.S. dollar’s weakness this year has shown the downside of hedging currency exposure when investing in overseas stocks. Investors are… Continue reading Currency Risk
<Click on chart for larger image> Housing Wire – Housing starts are in, and economic experts couldn’t disagree more The ‘volatile nature’ of housing starts “Today’s housing starts data is further proof of the volatile nature of these reports. While an 8% drop sounds like a major hit to the housing market, it’s important to… Continue reading Long-Term Thought About Housing
The Economist – Buttonwood: A losing bet Hedge funds haven’t delivered on their promise HEDGE funds employ the cleverest people in the world to exploit the opportunities that other managers miss. That is why they deserve their high fees—or so the story goes. That story is getting harder and harder to believe. In the first… Continue reading Your Daily Installment In Kicking Hedge Funds In The Teeth
The Wall Street Journal – Donald Trump Says He Would Replace Janet Yellen, Supports Low Interest Rates Presidential candidate in CNBC interview says higher rates would hurt the U.S.’s trade position Donald Trump, the presumptive Republican presidential nominee, said Thursday he would “most likely” replace Federal Reserve Chairwoman Janet Yellen if elected. “She is not… Continue reading If Trump Is In, Janet Is Out
<Click on graphic for larger image> The Economist – Emerging markets: The unloved bounce The recovery in emerging markets looks fragile for all but a handful of countries IT IS not easy to have faith in the rally in emerging-market currencies that has taken place since February. The ones that have risen most in recent… Continue reading Bouncing Emerging Markets
The Telegraph (UK) – Donald Trump backs Brexit: Britain would be better off outside EU, says Republican candidate Donald Trump has waded into the Brexit debate by stating that Britain would be “better off without” the European Union. The Republican presidential candidate, said “migration has been a horrible thing for Europe” and that Britain should… Continue reading More From Trump
None Today
The Financial Times – John Authers: Phnoor earnings suggests bear market looms If you want the good news on this quarter’s US earnings season, there is at least this: profit margins have held up much better than expected. Earnings have slightly surpassed the dreadful expectations for them — even though, and this is the bad… Continue reading Earnings