<Click on graphic for larger image> <Click on graphic for larger image> Comment We have focused a lot on falling earnings recently because we believe they are ground zero of all economic data. Retail sales measure a form of company performance. Payrolls measure a form of company performance. Even inflation measures a form of company… Continue reading Earnings And The Economy
<Click on chart for larger image> The Wall Street Journal – Hedge Funds Failing to Meet Investor Expectations, Report Finds Hedge funds are failing to live up to their investors’ expectations. A survey from Deutsche Bank ’s Global Prime Finance unit, published on Tuesday, showed two-thirds of responding investors said hedge funds they invested in… Continue reading More On Hedge Funds’ Poor Performance
<Click on chart for larger image> The Wall Street Journal – Inflation in Developed Economies Halved in January, OECD Says The annual rate of inflation across the world’s developed economies more than halved in January, reaching its lowest level since the recession that followed the global financial crisis. While consumer prices rose at a faster… Continue reading World Inflation Sinks
Janus – Bill Gross: Going to the Dogs There’s a similar contest going on in global financial markets where the “home country” seeks to outdo the competition in a race to the interest rate bottom. None dare call it a “currency war” because that would be counter to G-10/G-20 policy statements that stress cooperation as… Continue reading Bill Gross Speaks
Bloomberg.com – Corporate-Bond Market Poses Systemic Risk, SEC’s Gallagher Says A lack of liquidity in corporate-bond markets could pose a “systemic risk” to the economy when interest rates rise, U.S. Securities and Exchange Commission member Daniel Gallagher said. Gallagher, a Republican, warned that the Financial Stability Oversight Council, a group of U.S. regulators that monitors… Continue reading Corporate Bond Liquidity Issues
<Click on chart for larger image> The Wall Street Journal – Manufacturing Data Push Dollar Up Against Yen, Euro The dollar advanced against the yen and the euro on Monday after U.S. manufacturing data preserved market expectations for higher interest rates.The dollar rose above ¥120 for the first time in more than two weeks, gaining… Continue reading The Euro Hits A New 12-Year Low
<Click on graphic for larger image> <Click on graphic for larger image> The New York Times – Wells Fargo Puts a Ceiling on Subprime Auto Loans Wells Fargo, one of the largest subprime car lenders, is pulling back from that roaring market, a move that is being felt throughout the broader auto industry. The giant… Continue reading More On Subprime Auto Loans
<Click on graphic for larger image> The Financial Times – Who’s fooling whom in haven asset hunt? A global savings glut is confronting a shortage of safe holdings A welcome benefit of the collapse in oil prices and of falling inflation more generally is that the return on cash in much of the world is… Continue reading Bank Repo
The Guardian – To beat austerity, Greece must break free from the euro The agreement signed between Greece and the EU after three weeks of lively negotiations is a compromise reached under economic duress. Its only merit for Greece is that it has kept the Syriza government alive and able to fight another day. That… Continue reading Greece
<Click on graphic for larger image> The Financial Times – Reasons to worry about US equities February was another very strong month for global equities, with the US market enjoying its best month since October 2011. Global equities are now up by 5.1 per cent this year, exceeding even the heady pace of the 2012-14… Continue reading Equity Markets At New Highs
Barron’s – Bernanke: Fed is Transparent Enough Former Fed Chairman Ben Bernanke said that Republican efforts to require the Federal Reserve to be more transparent are unnecessary at a panel discussion at Brookings Institution on Monday. Bernanke says “We hold ourselves accountable pretty well,” he said. The Fed announces its goals, gives projections, holds press… Continue reading Bernanke Speaks
Bloomberg Business – Draghi’s Rescue Plan Has Created a $103 Billion Problem There’s a corner of the pension world that needs to brace itself for Mario Draghi. His European Central Bank’s 1.1 trillion euro ($1.2 trillion) bond-buying plan might have already blown a 92 billion-euro hole in defined-benefit pension plans by depressing bond yields, Standard… Continue reading The Problem With Draghi’s QE Plan