<Click on graphic for larger image> The Washington Post – This is crazy: Nestle is getting paid to borrow money That brings us to the obvious question: Why would you ever pay Nestlé, or anyone else for that matter, to borrow money from you? Well, because there’s not enough inflation and not enough bonds. This… Continue reading Negative Yields
The Wall Street Journal – Why Cheaper Oil Doesn’t Always Lead to Economic Growth Tumbling oil prices were supposed to boost growth in a host of major oil-importing economies. It isn’t necessarily working out that way. Some governments have moved already to shore up their revenues by raising gasoline taxes or cutting fuel subsidies. At… Continue reading Falling Crude’s Effect On Economic Growth
<Click on graphic for larger image> The Wall Street Journal – Oil Prices Slump as Inventories Rise More Than Expected ‘Considerable Oversupply’ Could See Prices Fall in Short-Term, Say Analysts Oil prices sunk further Wednesday after U.S. data showed that crude supplies grew more than expected last week and are sitting around 80-year highs. U.S.… Continue reading Crude Inventories
Bloomberg.com – No Bust Seen as Dakota Oil Firms Keep Staff Amid Price Drop A plunge in global energy prices that has put some North Dakota oil rigs in a deep freeze has yet to chill the state’s hiring climate. By almost any metric — the jobless rate, payrolls, claims for unemployment benefits — there… Continue reading There Is No Bust In Crude Oil!
The Wall Street Journal – Fed’s Rosengren Says Strong Dollar Is a ‘Complicating Factor’ Federal Reserve Bank of Boston President Eric Rosengren said Thursday the dollar’s recent rise is a “complicating factor” in the Fed’s efforts to get annual consumer-price growth back to its 2% target. Still, Mr. Rosengren signaled that the higher value of… Continue reading Rosengren Comments On Soaring Dollar
<Click on chart for larger image> Bloomberg.com – Barry Ritholtz: The Unloved Treasury Rally Jim Bianco of his namesake firm notes that in January the 30-year bond returned 10.71 percent. That ranks as the seventh best month ever for the security. We don’t know if that is going to continue, but it is certainly worth… Continue reading Treasury Returns
Real Time Economics (WSJ Blog) – Jon Hilsenrath: FED OFFICIALS ARE WRESTLING WITH THEIR “PATIENT” ASSURANCE ON LOW RATES The next big decision for Federal Reserve officials isn’t deciding whether they want to raise short-term interest rates in June. It is deciding whether they want to have the option to do so. The Fed’s next… Continue reading How Long Will The Fed Remain “Patient”?
The Wall Street Journal – Gold, Dollar Buck Trend to Shine Together Gold’s run-up so far this year has put it among the best-performing assets globally. But it is fear, not glitter, that is behind the yellow metal’s appeal for investors. As market jitters persist, thanks mainly to renewed economic uncertainty in the eurozone following… Continue reading Gold vs. The Dollar
Bloomberg BusinessWeek – Buffett Says Tough for Fed to Lift Rates Given Strong Dollar Warren Buffett, the billionaire chairman of Berkshire Hathaway Inc., said it would be “very tough” for the Federal Reserve to lift interest rates this year because of the stronger U.S. dollar. “That would exacerbate the problem,” Buffett said in an interview… Continue reading Buffett Sees Higher Rates
The Financial Times – Dominic Rossi: Why S&P 500 can reach the 3,000 level by 2020 We are working through a curious period in financial history during which neither capital nor labour has pricing power. Neither can generate much income. Average earnings in nominal and real terms have barely grown, while capital sits idly… Continue reading Bullish Stock Predictions While Getting Bonds All Wrong
The Wall Street Journal – Greek Government Plays Down European Central Bank Decision Greece’s government on Thursday played down an announcement by the European Central Bank that it would no longer accept Greek government bonds from banks seeking funds, a move that sent Greek markets plunging over the standoff. The decision came amid mounting pressure… Continue reading Greece
MoneyBeat (WSJ Blog) – You Can Blame Oil Data for Stock Volatility Stock traders, set your alarms for 10:30. Volatility in the stock market is on the rise, and oil-related news is at least in part to blame, according to trading data from Credit Suisse. The data, compiled by trading strategist Ana Avramovic, shows that… Continue reading Stock Volatility By The Hour