<Click on graphic for larger image> The Financial Times – Surge in emerging market capital outflows hits growth and currencies Fears over China and US Fed policies spur exodus A surge of capital gushing out of emerging markets has risen toward $1tn over the past 13 months, roughly double the amount that fled during the… Continue reading Emerging Markets Outflows Grow
The Financial Times – Eurozone: The case against ‘cash for reform’ EU bailouts were based on the belief that a wave of sovereign defaults could doom the single currency. But was it correct? The eurozone establishment has largely internalised the idea that “cash for reform” is necessary to keep the euro together. The most direct… Continue reading Europe
The Wall Street Journal – JPMorgan: Here’s Why Wage Growth Stinks Wage growth also remains very weak with wages of production and nonsupervisory workers up just 0.1% in July compared to June and up just 1.8% year-over-year. This is remarkably different from the last three economic expansions. The July jobs report showed only a marginal… Continue reading Reasons For The Lack Of Wage Growth
The Financial Times – Chris Giles: Inequality is unjust, not bad for growth That redistribution boosts economies is not established by the evidence Disparity of income is both a virtue and a vice. The virtue of providing rewards for effort and generating economic growth must be balanced against the vice of inequality’s manifest injustice. Riches… Continue reading Wealth Inequality
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Comment Jim Bianco was on Bloomberg TV yesterday discussing the Federal Reserve and his market outlook. To view the interview, click on the image above. To view any of our recent interviews, click here.
<Click on graphic for larger image> Reuters – What might prompt a short-covering rally in U.S. oil price? John Kemp Hedge funds remained unusually bearish on U.S. oil prices last week even as the cost of WTI tumbled towards the lowest level since 2009. Hedge funds and other money managers held short positions in WTI-linked… Continue reading Hedge Funds And Crude Oil
Bloomberg – Lisa Abramowicz: Harvard Joins Funds Using ETFs as Quick Way In and Out of Junk Love exchange-traded funds or hate them, one thing is clear: the biggest investors are increasingly using them as a way to dabble in inefficient and opaque bond markets. Harvard Management Co., for example, sold about $90 million of… Continue reading Credit ETFs
The Wall Street Journal – PBOC Injection Shows China Worries About Outflows As money flows out of China, the central bank is taking measures to keep borrowing costs low China’s central bank injected the largest amount of cash into the financial system on a single day in almost 19 months Tuesday, signaling Beijing’s growing concerns… Continue reading More Chinese Panic?
The Irrelevant Investor – Michael Batnick: Twas Ever Thus From Sebastian Mallaby’s More Money Than God “Between the close of 1968 and September 30, 1970, the 28 largest hedge funds lost two third of their capital, Their claim to be hedged turned out to be a bald faced lie; they had racked up hot performance numbers… Continue reading A Short History Of Hedge Funds
Bloomberg Business – Claren Road Investors Said to Pull $1.97 Billion After Losses Investors in Claren Road Asset Management, the hedge fund that’s extended losses this year, asked to pull about 48 percent of the firm’s $4.1 billion in assets, according to a person with knowledge of the matter. The firm, which is owned by… Continue reading The Pain Of Fannie/Freddie