Bloomberg.com – Oil Falls to Four-Year Low as Bond Yields Drop to Records Crude slumped to the lowest level in almost four years and yields on German government bonds dropped to a record on evidence growth is slowing. Drugmakers led declines in European stocks, while U.S. index (BCOM) futures fell. Brent decreased 1.3 percent to… Continue reading Why Is Crude Oil Falling?
Zero Hedge – If The Oil Plunge Continues, “Now May Be A Time To Panic” For US Shale Companies Goldman’s explanation: We believe that the vast reserves that have been opened for development through shale oil in the US have flattened the cost curve meaningfully, at around a US$85/bl Brent oil price. We estimate shale… Continue reading When Do Slumping Crude Prices Hurt US Production?
CNBC – Gundlach: 2.20% should be the low on rates; Alibaba was probably the top for stocks for year Yields on 10-year US Treasurys will hold and stocks will bounce, fund manager Jeffrey Gundlach told CNBC on Tuesday. Gundlach said 2.20 percent should be the low in interest rates on the 10-year, and that sentiment… Continue reading How Rate Hikes Get Tabled And More QE Could Be Reality
Investor Place – Q3 Earnings Season Ramps Up The 2014 Q3 reporting season is underway and we have results from 29 S&P 500 members. The reporting pace accelerates this week, with 127 companies announcing third-quarter results, including 52 S&P 500 members. While the finance sector is heavily represented on this week’s reporting docket, we have… Continue reading Earnings Expectations
<Click on chart for larger image> Bloomberg.com – Treasury Inflation Gauge Drops to 15-Month Low on Growth Concern A Treasury market gauge of inflation expectations fell to the lowest in 15 months amid concern slowing global growth will sap the U.S. economic recovery. The 10-year break-even rate, derived from the difference between yields on Treasuries… Continue reading Inflation Expectations
<Click on chart for larger image> <Click on chart for larger image> The Wall Street Journal – Watch Corporate Bonds for Clues to Markets’ Meltdown An indicator of how worried investors really are might come from the corporate debt markets. High-yield bonds in the U.S. and Europe have suffered along with equities. But investment-grade bonds… Continue reading Corporate Bonds
Real Time Economics – Could Falling Share Prices Also Be Part Of the Central Bank Toolkit? Now, much of that asset price adjustment is expected to come thanks to inflation. In money terms, asset prices will decline somewhat from highs, but mostly, their revaluation will come from remaining stable in nominal terms but losing once… Continue reading Qualitative Economic Impact Of QE
The Financial Times – Martin Wolf: How to do better than the ‘new mediocre’ We must launch well-crafted reforms in both emerging and high-income economies Are we to believe that slower growth in the world economy is here to stay? Christine Lagarde of the International Monetary Fund thinks so; “the new mediocre” is the managing… Continue reading The New Mediocre
The Wall Street Journal – Big Banks Struggle to Return to Form Originations fell 51% at Citi and 40% at Wells. Further weakness likely lies ahead in both the short term, as the housing market slows during the winter, and longer term, as any eventual increase in interest rates makes mortgages more expensive. Even the… Continue reading U.S. Banks
A Look At The Surging Dollar A transcript of the October 9, 2014 conference call. Audio Link of Conference Call Handout (also shown below) [hana-flv-player video=”https://www.biancoresearch.com/bianco/SubscriberArea/100914.flv” width=”600″ height=”495″ description=”” player=”3″ autoload=”false” autoplay=”false” loop=”false” autorewind=”true” splashimage=”https://www.biancoresearch.com/bianco/wp-content/themes/twentyten/images/splash.jpg” /] <Click above to view webcast> [pageview class=”PDFViewer” url=”https://www.biancoresearch.com/bianco/wp-content/plugins/PDFViewer/plugin.php?id=217″] Audio [audio:https://www.biancoresearch.com/bianco/SubscriberArea/100914.mp3|titles=Conference Call ]
Comment The chart below comes from our friend Ron Griess at The Chart Store. It shows the pattern of higher highs achieved since late 2012. It also shows how yesterday’s decline broke this pattern with a lower low. We are fans of technical analysis and sometimes the simplest tools are the most powerful. The chart… Continue reading What Is The Trend Of The Stock Market?