San Francisco Federal Reserve Economic Letter – Does Slower Growth Imply Lower Interest Rates? In this Letter , we document a range of views about the li nk between potential growth and the natural interest rate. In particular, while the CBO and many FOMC participants expect weaker long-run growth to translate into lower interest rates,… Continue reading Economic Growth And Interest Rates
Comment Jim Bianco was on CNBC Friday morning discussing the payroll report. To view the interview, click on the image above. To view any of our recent interviews, click here. Many are noting payrolls have exceeded 200,000 for nine straight months and this is the longest such streak in a decade. This is true. However,… Continue reading Another Look At Last Week’s Payroll Report
<Click on chart for larger image> <Click on chart for larger image> The Wall Street Journal – Revenue Softness Worries Stock Investors As investors pore over third-quarter earnings reports, they are finding signs of corporate malaise that are raising concerns about the outlook for U.S. stocks. While profit gains have generally been solid, many blue-chip… Continue reading Revenues Disappoint
<Click on chart for larger image> Bloomberg.com – Who’s Afraid of Fed Raising Rates? Not These Bond Buyers For all the talk that U.S. Treasuries will tumble once the Federal Reserve starts to raise interest rates, investors in the longest-dated debt securities are finding little cause for concern. Government bonds due in 30 years, the… Continue reading Bond Returns
The Financial Times – Currency wars fail to spark global growth Six years after the financial crisis ended, the global economic recovery remains anaemic. Fiscal stimulus could not be used to redress the situation due to fiscal gridlock in Washington, lack of agreement on policy across the eurozone, and the already high debt-to-GDP ratio in… Continue reading Currency Devaluation As A Global Growth Tool
The Wall Street Journal – China Opens Doors to Foreign Investment in Stocks One of the world’s biggest stock markets, Shanghai, will open up to foreign investors next week with the start of a highly anticipated trading link with Hong Kong that gives global money managers access to US$2 trillion of Chinese shares. The final… Continue reading Investing In Chinese Stocks
The Financial Times – Wolfgang Munchau: The euro is in greater peril today than at the height of the crisis If there is one thing European policy makers agree on, it is that the survival of the euro is no longer in doubt. The economy is not doing great, but at least the crisis is… Continue reading Gauging The Health Of The Euro
The Wall Street Journal – Bond Swings Draw Scrutiny Now, investors and regulators are burrowing into the causes of the plunge in yields to try to understand whether electronic trading and new regulations are fueling sudden price swings in a market that acts as a key benchmark for interest rates, investments and U.S. home loans.… Continue reading More On Volume During The October 15 Bond Flash Crash
MoneyBeat (WSJ Blog) – Pimco to Spend $280 Million on Staff Retention The asset management industry is all about stability and 2014 hasn’t exactly been even-keeled for Pacific Investment Management Co. In a bid to stave off further departures during a year of management changes and heavy outflows, the bond giant unveiled a new “enhanced… Continue reading Pimco Enhances Employee Pay Packages
The Wall Street Journal – How BOJ’s Kuroda Won the Vote for Stimulus Expansion The main purpose of the Bank of Japan policy board meeting Oct. 31 was supposed to be updating economic forecasts, not making policy changes. But as board members submitted their forecasts, an alarming pattern emerged, according to people familiar with the… Continue reading Behind The Scenes Of Japan’s Latest Stimulus Decision
None Today