Reuters.com – Watch for U.S. recession, zero interest rates in China next year, Citi says The outlook for the global economy next year is darkening, with a U.S. recession and China becoming the first major emerging market to slash interest rates to zero both potential scenarios, according to Citi. As the U.S. economy enters its… Continue reading 2016 Outlook
Bloomberg Business – Meet the New Currency Arbitrageurs; Corporate Treasurers Companies are seeking to take advantage of cheaper funding costs Strange things have been happening in markets, that much we know. In the credit world, derivatives linked to the corporate debt sold by companies have been trading at a tighter level than the cash bonds… Continue reading Companies Take Advantage of Cheap Funding
CNN Money – Fed ends ‘too big to fail’ lending to collapsing banks The Federal Reserve is cutting its lifeline to big banks in financial trouble. The Fed officially adopted a new rule Monday that limits its ability to lend emergency money to banks. In theory, the new rule should quash the notion that Wall… Continue reading “Too Big To Fail” Lending Ends
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CNBC – Hatzius: Feds will raise rates 1 time each quarter With investors still uncertain about how the Federal Reserve’s tightening of monetary policy will affect the economy, Goldman Sachs’ top economist expects the central bank to take a slow approach—and for the status quo on growth to prevail. The Fed is currently expected to… Continue reading The Two-Year Note & Rate Hikes
<Click on graphic for larger image> Bloomberg.com – Oil Bulls Brace for Repeat of OPEC’s Bearish Blow at Meeting Bullish bets fall by 20 percent, biggest decline since July OPEC expected to hold production target flat at Dec. 4 meeting Hedge funds are betting this week’s OPEC meeting will deliver another bearish blow to crude. … Continue reading Crude Oil Positioning
Bloomberg – IMF Approves Reserve-Currency Status for China’s Yuan China’s currency to have 10.92% weighting, topping yen, pound Lagarde says China’s currency meets `freely usable’ standard The IMF will add the yuan to its basket of reserve currencies, an international stamp of approval of the strides China has made integrating into a global economic system… Continue reading The Yuan Into The SDR
Zero Hedge – Larry Lindsey Crushes Steve Liesman’s Dreams, “The Foolish Fed’s Bubble Policy Always Ends Badly” Former Fed member and National Economic Council director Larry Lindsey unleashed a barrage of uncomfortable truthiness on no lessor Fed apologist than Steve Liesman this morning. In the brief span of 4 minutes, Lindsey demolished Fed policy, “The… Continue reading The Fed’s Bubble Policy
<Click on graphic for larger image> The Financial Times – Euro looks like it has further to fall Selling the single currency and buying dollars is the number one trade in most banks’ 2016 outlooks, writes Katie Martin Short of hiring a small aircraft and trailing a banner reading “Sell euros, buy dollars!” across the… Continue reading The Euro
Book Forum: Pedro Nicolaci da Costa: Anatomy of a Meltdown Ben Bernanke’s Washington tell-all says too little, too late In Bernanke’s version of events, his reticence seems more than simply personal; the omissions from his narrative prove, at times, to be more telling than the stories he shares. This is particularly true when it comes… Continue reading Questioning Bernanke’s Version Of Events
<Click on chart for larger image> Zero Hedge – Legendary Hedge Fund Calls It (Semi) Quits: $8 Billion BlueCrest To Return Outside Client Money Hedge funds are dropping like flies now. Following news that both Ackman and Einhorn have suffered dramatic losses, in the -20% ballpark YTD, and after reporting that numerous metal-focused commodity hedge… Continue reading The Distant Scream You Still Hear Is The Hedge Fund Industry
<Click on graphic for larger image> Reuters.com – As stock buybacks reach historic levels, signs that corporate America is undermining itself CEO Meg Whitman has just overseen one of the largest corporate breakups ever attempted, creating one company for the PC and printer business, called HP Inc, and one for the corporate hardware and services… Continue reading Stock Buybacks