The Economist – Chinese economic data: Fudge-ocracy The way to get ahead in China is to manipulate statistics IN THEORY Chinese officials receive promotions based on their performance against a range of targets: delivering strong growth, maintaining social stability and, until recently, enforcing the one-child policy. But scholars debate whether the system really rewards those… Continue reading Suspect Chinese Economic Data
None Today
Bloomberg.com – Lisa Abramowicz: Liquidity Death Spiral Traps Credit Suisse Credit Suisse just got caught up in the same liquidity death spiral that has claimed a growing number of debt funds. Some of the bank’s traders increased holdings of distressed and other infrequently traded assets in recent months without telling some senior leaders, Credit Suisse… Continue reading Liquidity In The High Yield Market
<Click on chart for larger image> Bloomberg.com – Japan’s Negative-Yield Bonds Return More Than Double Treasuries Negative yields are proving to be no deterrent to investors in Japan’s bonds. The nation’s government debt has returned 5.8 percent in the past six months, the most of 26 sovereign debt markets tracked by Bloomberg. Treasuries gained 2.2… Continue reading Negative Rates Do Not Limit Returns
<Click on graphic for larger image> The Wall Street Journal – How Fed Makes Markets Purr If it ever feels like the only things that matter to the markets are the central banks , you’re not alone. You’re not wrong, either: It turns out that fully a quarter of the gain in the U.S. stock… Continue reading The Fed’s Effect On The Markets
<Click on graphic for larger image> Bloomberg.com – Pound’s $16 Billion of Option Trades Envisage Drop to 1980s Lows As Britain ponders its future in the European Union, investors are betting an amount almost the size of Iceland’s economy on the pound falling to levels last seen in the 1980s. At least 11 billion pounds… Continue reading Betting On Brexit
<Click on graphic for larger image> MoneyBeat (WSJ Blog) – Doctor Copper Hiding in Shanghai Warehouse The price of copper has risen as China keeps buying this industrial metal, sending positive signals about the state of demand in its economy. But there is evidence that the metal is just being stockpiled, raising questions about what… Continue reading Copper’s Story On The Economy
<Click on chart for larger image> The Financial Times – Earnings season set to cool Wall Street’s improving mood How much can the stock market rally in the face of the reality that earnings expectations have been steadily reduced? Analysts who last summer predicted earnings growth to come in at 12 per cent now anticipate… Continue reading Earnings Estimates Continue To Fall
The Washington Post – Robert J. Samuelson: The cyber heist that should scare our global financial system It’s a big story that has stayed beneath the radar of most American media. Somehow, cyber criminals stole $81 million from Bangladesh’s central bank (its Federal Reserve)…Just what happened isn’t clear. The money moved from Bangladesh’s account at… Continue reading More On The Central Bank Cyber Heist
<Click on graphic for larger image>
Charts of the Week Topics Covered This Week Include: Election Betting Update Election Betting Update – 2 Massive Buying In Crude Oil Again – Can Everyone Be Right? Massive Buying In Crude Oil Again –- 2 Massive Buying In Crude Oil Again – 3 Massive Buying In Crude Oil Again – 4 Market vs. Inflation,… Continue reading Charts of the Week
<Click on chart for larger image> CNBC – Fed Chair Yellen has a mini revolt on her hands Fed Chair Janet Yellen has something of a mini revolt on her hands. Four of the 17 members of the Federal Open Market Committee have now publicly indicated their disagreement with the dovish guidance in last week’s… Continue reading Does Yellen Have A Revolt On Her Hands?