Reserve Bank of Australia – Guy Debelle: Bond Market Liquidity, Long-term Rates and China I have talked about three topical issues in financial markets today: bond market liquidity, long-term yields and China’s exchange rate. All three issues are important to financial markets in Australia. They are currently quite interrelated, with the rundown in China’s foreign… Continue reading Bond Market Liquidity
e21 – Caroline Baum: So Many Job Openings, Why So Few Candidates? “Job Openings in U.S. Surge to Record While Hiring Cools” read the Bloomberg News headline following the release of the July report on Job Openings and Labor Turnover, better known as JOLTS. If that seems like a disconnect, it is. By all rights,… Continue reading The Jobs Market
Charts of the Week Topics Covered This Week Include: A Day Until The FOMC Meeting Q3 Earnings Preview Energy Credit $20 Crude Oil? Long Crude and Long Energy ETFs Gas Prices U.S. Crude Oil & Liquid Supply Inflation Expectations Volatility Remains Elevated Doubting Chinese Data The Dollar Index S&P 500 vs Hedge Fund Returns Japanese… Continue reading Charts of the Week
<Click on chart for larger image> The Wall Street Journal – Greg Ip: For the Fed, Markets May Be Flashing a Wait Sign Recent turmoil in stocks, bonds and currencies could give central bankers a reason to delay raising rates The Federal Reserve owes no allegiance to the stock market. Its responsibility is to the… Continue reading One Day Until The FOMC Meeting
The Financial Times – Finance replaces Opec as oil supply arbiter Capital intensive US shale is main focus for output declines North American capital markets are replacing Opec as the “central banker” of oil, bearing the responsibility for balancing oil markets. With Opec no longer setting the marginal supply, capital markets are providing or withdrawing… Continue reading Crude Oil Production
The Wall Street Journal – Asset Managers Face Tough Choice If Rates Rise An increase in interest rates would force many asset managers to make a hard decision: keep the extra money or pass it along to returns-starved clients Few areas of finance have as much riding on the Federal Reserve’s interest-rate decision this week… Continue reading Money Managers And The Fed’s Decision
The Wall Street Journal – Rand Paul and Mark Spitznagel: If Only the Fed Would Get Out of the Way Monetary policy designed to spare us from pain has instead made the system more vulnerable to a crash. The U.S. stock market rose with each new wave of QE. Does this wealth represent genuine economic… Continue reading More On The Fed
The Financial Times – Martin Wolf: A new Chinese export — recession risk Is a global economic recession likely? If so, what might trigger it? Willem Buiter, Citi’s chief economist and the Financial Times’ erstwhile Maverecon blogger, answers these questions: “Yes” and “China”. His case is plausible. This does not mean we must expect a… Continue reading China
The Telegraph – Failure of the BRICS reveals the folly of snazzy acronyms Any acronym, slogan-based investment theme is invariably a flop There have been plenty of different messages for investors in the wild swings in the Chinese stock market over the last few months. It might well have signalled a weakening of what is… Continue reading BRICS Concept Failure
Bloomberg Business – What Rising Interest Rates Would Mean for You For years, Americans have been told that higher interest rates are coming, eventually. Federal Reserve Chair Janet Yellen and the Fed’s Open Market Committee may now be getting ready to lift rates off the floor, probably by a quarter of a percentage point from… Continue reading What Rising Rates Mean For Retail Investors