Charts of the Week Topics Covered This Week Include: Probability Of A December 2015 Rate Hike Now At 48% Timing The Rate Hike: Economist vs. The Market An Earnings Update Beat Rates Fallen Angels China’s True GDP The Markets Are Junkies – China The Markets Are Junkies – European Edition Homeownership Rate Remains Near Lows… Continue reading Charts of the Week
<Click on chart for larger image> The Financial Times – US interest rates likely to remain unchanged as Fed decision looms Picture has become clouded in recent weeks due to slower hiring and a split among FOMC members Investors will be paying close attention as the Federal Open Market Committee reveals its latest policy statement… Continue reading The FOMC Meets Today
The Wall Street Journal – For Fed, a Rates Puzzle Looms Surging levels of cash in U.S. money markets threaten to undermine the Federal Reserve’s control over short-term interest rates The Fed’s benchmark federal-funds effective rate, the daily average rate charged on overnight loans between banks, has fallen sharply at the ends of recent months.… Continue reading The Fed Funds Rate And Reverse Repos
<Click on chart for larger image> Bloomberg Business – Yellen Has Over 6 Million Reasons to Take Her Time Raising Rates Yellen’s focus on the under-employed is steering monetary policy toward a bold experiment: The Federal Open Market Committee will use the big, blunt instrument of low interest rates to push the jobless level low… Continue reading Unemployment And The Fed’s Rate Decision
MoneyBeat – Shining a Spotlight on Bond-Market Liquidity It has been been one of the most hotly contested issues across Wall Street with some of the biggest names in finance lining up on opposite sides of the debate: Has bond-market liquidity deteriorated since the financial crisis? Now a group of global securities regulators is trying… Continue reading Bond Market Liquidity
The Wall Street Journal – Hedge-Fund Billionaire Larry Robbins Takes ‘Punch in the Face’ Glenview Capital Management’s main fund is down 20% amid slump in health-care sector Billionaire hedge-fund manager Larry Robbins once compared his bets on the success of President Barack Obama’s health-care overhaul to assembling a jigsaw puzzle. But a new slump for… Continue reading Hedge Funds Continue To Suffer
<Click on chart for larger image> Bloomberg (no link) – China’s True GDP Growth May Be as Low as 2.8%, Models Suggest China’s official 6.9% y/y print for 3Q GDP is at odds with models used by researchers at Bloomberg Intelligence and financial firms, Bloomberg economists Tom Orlik and Fielding Chen write. Using data such… Continue reading China’s True GDP
CNBC – Fed has created ‘a fear environment’: Economist As the market awaits the first U.S. interest rate hike in more than nine years, participants should put aside the notion that the Federal Reserve knows something the Street doesn’t, experts told CNBC ahead of a two-day meeting of the Fed’s October policymaking meeting. The Federal… Continue reading Has The Fed Created Unnecessary Fear?
Bloomberg Business – Here’s What Companies Are Saying About Wage Growth in Their Earnings Calls Earnings season is in full swing in the U.S., and the labor market continues to be a big topic as the Federal Reserve debates whether to raise interest rates for the first time in nearly a decade. Although wage growth… Continue reading Rising Wages
<Click on chart for larger image> Real Time Economics – The Homeownership Rate Is Near a 30-Year Low. Could It Be Hitting Bottom? The homeownership rate remained near its lowest point in three decades in the third quarter, but economists said the good news is that it may not go much lower. Not seasonally adjusted,… Continue reading Homeownership Rate Remains Near Lows
The Wall Street Journal – Fast-Growing ETFs Dealt a Setback ETFs in general have lately drawn attention from regulators, particularly after a rocky trading session on Aug. 24, when some ETFs traded at steep discounts to their underlying holdings. SEC Commissioner Luis Aguilar said this month that “the explosive growth of ETFs in recent years… Continue reading ETF Regulation
Bloomberg View – Lisa Abramowicz: Humans 1, Machines 0 in Exchange Deal If you’re human and a bond trader, here’s some good news: You’re not easily replaced by computers after all. That’s the implication of Intercontinental Exchange’s $5.2 billion agreement to buy Interactive Data Holdings Corp., which specializes in evaluating fair market values on less-frequently… Continue reading Human vs Machine Traders