Charts of the Week Topics Covered This Week Include: An Earnings Update An Earnings Update – 2 An Earnings Update – 3 Company Guidance Revenue Update Bond Market Sentiment Bond Market Sentiment – 2 Bond Market Sentiment – 3 Will The Fed Defy The Market? This Is Not What The Fed Wants! Foreign Repo Negative… Continue reading Charts of the Week
<Click on chart for larger image> Bloomberg.com – This Is Why Kyle Bass Is Wrong on China Collapse, Says CICC CICC questions parallels between Japan in 1990 and China now Economists’ note follows earlier report from CICC bank analyst China International Capital Corp. has stepped up its beef with Kyle Bass. The Chinese investment bank’s… Continue reading China’s “Hot Money” Capital Flows
<Click on graphic for larger image> The Wall Street Journal – Rush of Corporate Bonds Inflames Worries About China’s Debt China looks to debt to rekindle growth but rapid credit buildup also adds economic risks A surge of corporate bonds is adding to China’s already-high debt levels, amplifying risks to the economy as Beijing persistently… Continue reading Corporate Bond Issuance Rises In China
<Click on graphic for larger image> The Financial Times – Martin Wolf: Helicopter drops might not be far away No simple solutions for the global economic imbalances of today exist, only palliatives No simple solutions for the global economic imbalances of today exist, only palliatives. The current favourite flavour in monetary policy is negative interest… Continue reading More On Negative Rates
The Wall Street Journal – Donald Trump Seals GOP Front-Runner Status With Nevada Win Outcome gives candidate another blast of momentum heading into Super Tuesday Donald Trump won the Nevada Republican caucuses Tuesday, claiming victory in the third state in a row and reinforcing his status as the front-runner for the GOP presidential nomination. The… Continue reading Trump Wins Big In Nevada – An Election Update
<Click on graphic for larger image> St. Louis Federal Reserve – What Future Oil Price Is Consistent with Current Inflation Expectations? If the fall in breakeven inflation rates reflects a fall in actual inflation expectations, and assuming this fall is largely driven by a fall in oil price expectations, then we can ask the following… Continue reading Breakeven Inflation Expectations And Oil Prices
<Click on chart for larger image> The Wall Street Journal – U.S. Home Price Growth Picked Up in December, Case-Shiller Says Driven by improving economy, limited inventory of homes for sale Home prices in December showed the strongest gains since July 2014, capping an overall strong year for home-price growth driven by an improving economy… Continue reading Home Prices Rise Again
MarketWatch – Fed’s Fischer: Market selloff may not leave imprint on economy Fed’s No. 2 says economy has survived similar episodes in recent years Federal Reserve Vice Chairman Stanley Fischer said Tuesday there is a possibility that the market selloff of 2016 may not damage the economy. “We have seen similar periods of volatility in… Continue reading Fed Presidents Speak
The Washington Post – Robert J. Samuelson: Janet Yellen is wrong. Expansions do die of old age. At her most recent news conference, in December, Federal Reserve Board Chair Janet Yellen had this (abbreviated) exchange with ABC News reporter Rebecca Jarvis. Jarvis: Historically, most economic expansions fade after this long. How confident are you that… Continue reading Why Yellen Is Wrong About Expansions
<Click on chart for larger image> The Wall Street Journal – Saudi Oil Minister Says No to Production Cuts But world’s largest oil exporter will continue to work with other oil states to forge agreement to steady production while demand catches up Saudi Arabia delivered its starkest message yet to a reeling global oil sector,… Continue reading Saudi Oil Production
<Click on chart for larger image> Bloomberg Business – How Low Could Pound Go in a `Brexit’? Economists See 1985 Levels A British exit from the European Union would be so devastating for the pound that 29 out of 34 economists in a Bloomberg survey see it sinking to $1.35 or below within a week… Continue reading The Pound Falls As Brexit Fears Rise
<Click on graphic for larger image> The Washington Post – The recovery is generating more high-wage jobs — but does that matter? The U.S. is still digging out of a big hole, and isn’t creating new opportunities for those whose jobs disappeared. A couple of weeks ago, some economists from Goldman Sachs came out with… Continue reading Industries That Are Generating Growth