<Click on graphic for larger image> <Click on graphic for larger image> Bloomberg.com – Treasuries Draw Weakest Demand Since ’09 as Central Banks Unload Demand at U.S. Treasury auctions fell this year to the lowest since 2009 as Wall Street dealers and central banks pulled back. Investors submitted bids for 2.8 times the almost $2… Continue reading Who Will Buy Treasuries?
<Click on chart for larger image> <Click on chart for larger image> The Financial Times – John Authers: ETFs to play main role in the next crisis The next financial crisis will be played out in indexes and exchange traded funds. That is inevitable given the huge share that ETFs now take of investor fund… Continue reading ETF Liquidity Fears
<Click on graphic for larger image> Bloomberg.com – Shale’s Running Out of Survival Tricks as OPEC Ramps Up Pressure In 2015, the fracking outfits that dot America’s oil-rich plains threw everything they had at $50-a-barrel crude. To cope with the 50 percent price plunge, they laid off thousands of roughnecks, focused their rigs on the… Continue reading OPEC vs. Shale
Bloomberg.com – Oil Bankruptcies Reach Highest Quarterly Level Since Recession At least 9 U.S. oil company bankruptcies in 4th quarter More U.S. oil company bankruptcies may follow next year Bankruptcies among oil and gas companies have reached quarterly levels last seen in the Great Recession, according to the Federal Reserve Bank of Dallas. At least… Continue reading Oil Bankruptcies
Reuters – U.S. retailers at risk of missing modest holiday sales goals Retailers are struggling to meet even modest forecasts for the holiday shopping season this year after the “Super Saturday” before Christmas failed to live up to its nickname, industry research groups said. The last Saturday before Christmas often sets the annual record for… Continue reading Holiday Sales
The Wall Street Journal – Andy Puzder: Wages With Minimal Wiggle Room The per-employee profit at Apple is $407,000. For big retailers, it’s $6,300. No wonder Wal-Mart feels the pinch of its pay increase. Long the target of progressives looking to increase the minimum wage, Wal-Mart announced earlier this year that the company would increase… Continue reading The Effect Of Higher Minimum Wages
<Click on graphic for larger image> The Wall Street Journal – Why Weak Currencies Have a Smaller Effect on Exports Because manufacturers increasingly use components from abroad to make things, exports now incorporate a lot more imports Measuring the impact of global supply chains on trade flows is the task of a project undertaken by… Continue reading Currencies & Exports
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CNBC – Default danger for US high yield in 2016 After the bruising decline seen in high-yield bonds so far this year, dominated by the trouble for oil and commodity issuers, investors and analysts warn that the worst is still to come for the sector. High-yield bonds are down around 5 percent so far this… Continue reading Investors Wary Of Junk Bonds
<Click on chart for larger image> The Wall Street Journal – Why Weekly Jobless Claims Matter The number of Americans filing for unemployment benefits doesn’t exactly keep traders on pins and needles these days. Unlike the government’s monthly jobs report, it doesn’t inspire Twitter hashtags, media live blogs or prompt sharp short-term market moves. But… Continue reading Why Jobless Claims Are So Low
Comment The lines on chart below start on October 2009, the month the unemployment rate peaked at 10%. The blue line is the U-3 unemployment rate which fell from 10% to 5% in November 2015 (latest). The red line is the unemployment rate but holds the participation rate steady at October 2009 levels. It fell… Continue reading Participation Rate Adjusted Unemployment Rate
<Click on graphic for larger picture> The Wall Street Journal – Consumers Keeping Growth Afloat As weak business spending and overseas turbulence hit economy, confident shoppers step up Optimistic consumers are keeping the U.S. economy on track for continued modest growth, despite weakness overseas and a manufacturing slump at home. Demand remains limp for many… Continue reading Consumers Remain Confident, Does It Matter?