<Click on chart for larger image> The Financial Times – China seeks to allay fears as renminbi fall continues The People’s Bank of China on Wednesday sought to dispel fears of a prolonged fall in the renminbi, even as the currency fell sharply for the second consecutive day. The Chinese central bank lowered the “daily… Continue reading The Yuan Continues To Fall
<Click on graphic for larger image> Bloomberg.com – Citigroup: Something Big and Fundamental Has Changed in Markets Markets used to be self-limiting but they aren’t anymore Liquidity in bond markets has grabbed all the headlines in recent months (and years). The ability to trade fixed income securities without overly impacting prices is front and center in the… Continue reading The Weak Yuan And The Fed
<Click on chart for larger image> Reuters.com – Dollar could suffer if U.S. walks away from Iran deal: John Kerry If the United States walks away from the nuclear deal with Iran and demands that its allies comply with U.S. sanctions, a loss of confidence in U.S. leadership could threaten the dollar’s position as the… Continue reading Will The Dollar Lose Its Reserve Currency Status?
The Wall Street Journal – Greece Faces Two-Year Recession Amid Bailout Cuts Greece faces two years of recession as it implements sharp budget cuts and policy overhauls mandated by its €86 billion ($94.97 billon) international bailout program, European Union officials said on Wednesday. The country’s economy is expected to shrink 2.3% this year, followed by… Continue reading Greece
The Financial Times – China devaluation raises spectre of currency wars Beijing’s attempt to deal with a slowdown may have a spillover effect All currency wars are self-defeating for their combatants. When a country slashes the value of its currency to boost exports, it inevitably triggers competitive devaluations by its trading partners, thereby robbing the… Continue reading Currency Wars
None Today
<Click on chart for larger image> The New York Times – China Devalues Its Currency as Worries Rise About Economic Slowdown As China contends with an economic slowdown and a stock market slump, the authorities on Tuesday sharply devalued the country’s currency, the renminbi, a move that could raise geopolitical tensions and weigh on growth… Continue reading China Devalues, Are They Panicking About Economic Growth?
The Wall Street Journal – Term Premium on 10-Year Treasury Back Below Zero The term premium investors charged to buy the benchmark 10-year U.S. government debt has turned negative Friday, falling to 0.007 percentage point. That’s the first time it turned negative since late April, according to the latest data from the Federal Reserve Bank… Continue reading Term Premium
The Wall Street Journal – Brian Baskin and Alison Sider: Freight Rail Traffic Tumbles on Falling Coal, Oil Demand Carloads carrying energy products declined at a double-digit rate in July, the Association of American Railroads says Rail traffic fell in July from a year ago as an increase in container volumes couldn’t offset a steep… Continue reading Rail Car Loadings Slump
<Click on graphic for larger image> The Wall Street Journal – M&A Deal Activity on Pace for Record Year Companies hunting for growth drive volume Global mergers and acquisitions are on pace this year to hit the highest level on record, thanks to a buying spree from companies on the hunt for growth. Takeover-deal announcements… Continue reading Is Booming M&A A Sell Signal For Equities?
Bloomberg.com – Greenspan: Be Afraid of Pending Bubble in Bond Market Former Federal Reserve Chairman Alan Greenspan discusses the U.S. economy, bond market and Fed policy. He speaks with Bloomberg’s Tom Keene. Comment For years we have pointed out the constant background drone about a bond bubble. Greenspan is the next in a very long… Continue reading Greenspan Speaks, Joins The Bubble Chorus
CNBC – Potential correction could be ‘very rough’: Siegel If you thought the Dow Jones industrial average having its best day since early May would make longtime market bull Jeremy Siegel more confident in his Dow 20,000 prediction think again. “I still think Dow 20,000 is possible by the end of the year,” the Wharton… Continue reading Jeremy Siegel Speaks