<Click on graphic for larger image> The Financial Times – Hedge funds’ bearish mining bets turn sour Hedge funds that made big profits betting against mining stocks in 2015 have seen the trade turn sour, as commodity prices have bounced off multiyear lows and triggered a huge rally in the natural resource sector. Anglo American… Continue reading Hedge Funds Bet On Commodities
<Click on graphic for larger image> The Wall Street Journal – China’s Lowered Growth Target: What the World Can Expect Even if China hits its inflation and growth targets, lending growth is going much faster, so debts overall will continue to rise China has tweaked its economic blueprint, but the results should be more of… Continue reading Chinese Economic Growth
The Wall Street Journal – Kevin A Hassett: The Bank That Makes Its Own Rules The Fed’s holdings earned $116 billion in interest in 2014—almost $90 billion more than in 2001. The Federal Reserve plays a major—some would say oversize—role in American life, but it is, for many citizens, a mysterious entity: Unelected officials pore… Continue reading Fed Power & Independence
MarketWatch – Epic short squeeze helps launch historic gains in oil stocks Chesapeake’s stock posted its biggest-ever weekly gain, as short interest topped 40% of public float Kudos to analysts at SunTrust Robinson Humphrey, who warned last week that an epic short-covering rally could be imminent in the energy sector, with a bounce in oil… Continue reading Shorting Oil
The Financial Times – Lawrence Summers: A world stumped by stubbornly low inflation There is no evidence that policymakers are acting strongly to restore their credibility Policymakers continued to worry about a supposed lack of demand long after it was an important problem. The first attempts to contain inflation were too timid to be effective… Continue reading Dealing With Low Inflation
The Financial Times – Wolfgang Munchau: European Central Bank must be much bolder A debate about policy alternatives is needed, starting with a realisation that QE has failed So what are the policy alternatives the governing council should discuss? I have argued in favour of a ‘helicopter drop’ , even before the recent deterioration in… Continue reading A Call For More Stimulus
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The Wall Street Journal – U.S. Added 242,000 Jobs in February U.S. payrolls grew more than expected; wages fell 0.1% from January U.S. employers picked up the pace of hiring in February, a sign of steady economic growth despite financial-market turmoil and weakness abroad. Nonfarm payrolls increased a seasonally adjusted 242,000 in February, the Labor… Continue reading Employment In Pictures
<Click on graphic for larger image> The Financial Times – Investors pile into US junk bond funds Flows tracked by EPFR also showed the largest weekly shift into high yield bond funds since the group began tracking the asset class in 2003. Investors instead sold off positions in Treasuries, with shorter dated notes notching the… Continue reading High Yield Inflows
<Click on chart for larger image> Bloomberg Business – Fed and the Markets: Breaking Up to Making Up on Rate Outlook FOMC’s median forecast of appropriate rate path likely to fall A once-yawning chasm between market expectations and U.S. Federal Reserve projections for the pace of interest rate increases this year is about to narrow.… Continue reading How Far Will The Fed Dots Fall?
<Click on chart for larger image> Bloomberg Business – German Two-Year Yield at Minus 0.58% Shows Mounting Bets on ECB Composite PMI index fell in February to lowest in 13 months Europe’s government bonds resumed their rally as investors, counting on more European Central Bank action, pushed Germany’s two-year note yields to an unprecedented minus… Continue reading Negative Rates Getting More Negative
The Wall Street Journal – Greg Ip: All Clear on Recession Risk? Not Yet The market turmoil has subsided, but its repercussions have yet to be felt Not long ago, fear of recession was rampant. Prices of stocks, junk bonds and oil were crumbling, deflation probabilities rising, and critics were calling on the Federal Reserve… Continue reading Recession Watch