Time – Colorado’s Gubernatorial Race Could Determine the U.S. Senate Race November’s election will be close for a handful of Senators and Senate hopefuls. But in Colorado, Democratic incumbent Mark Udall and Republican hopeful Cory Gardner (currently a Congressman) may find their fate determined in part by another election in the state. More Meet the… Continue reading Gubernatorial Elections
The Financial Times – China must resist cheap money temptation Lower borrowing costs are the last thing needed to rebalance economy With the gap between nominal interest rates and GDP narrowing, financial repression in China, which stands at the heart of the investment-led growth model, has lessened. This is good news for rebalancing the economy.… Continue reading China
CNBC – Why a strong dollar is scarier than taper tantrum Expectations that the Federal Reserve is on course to start tightening policy has spurred fears of a return of last year’s emerging market turmoil, but Societe Generale tips a strong dollar as a bigger risk. “A strong dollar tantrum could be a more worrying… Continue reading Why The Strong Dollar Is Scary
Real Time Economics (WSJ Blog) – Hilsenrath: Report Points to Downsides of Fed’s Consensus Culture Consensus building is often seen as a virtue at the Federal Reserve. Officials amicably air differences on the 19-member policy-making committee that sets interest rates, and come to decisions that reflect the common ground they find. A secret report on… Continue reading Doubting The Fed
<Click on chart for larger image> <Click on chart for larger image> The Wall Street Journal – Energy Journal: Theories Abound About Oil Markets With oil prices slipping lower again on Monday morning, the question is whether oil bulls are now fully in abeyance. Heard on the Street’s Liam Denning thinks there are good reasons… Continue reading A Look At The Oil Markets
The Wall Street Journal – Stock Markets Could Use Some Separation Anxiety Developed economies are on increasingly divergent paths. So why do stock markets behave as if they are one big trade? The U.S. economy seems to be reaching firmer ground, with a pickup in hiring reducing unemployment to the point where the Federal Reserve… Continue reading Stock Market Correlation
<Click on chart for larger image> MoneyBeat (WSJ Blog) – A Reason for Hope in the Fourth Quarter September once again has been a month to forget for stock bulls, but the start of the fourth quarter provides hope the rally will get back on track. Since 1928 the S&P 500 has averaged a 2.6%… Continue reading Stock Seasonality
The Financial Times – Pimco upheaval rattles bond market Upheaval at the top of Pimco rattled US bond and derivatives markets on Monday, as pension funds and other large investors braced for large outflows from the world’s largest bond manager. In the first day of trading after Pimco announced its response to the abrupt departure… Continue reading The Fallout From Bill Gross
The Wall Street Journal – Fed Rate Policies Aid Foreign Banks Lenders Pocket a Spread by Borrowing Cheaply, Parking Funds at Central Bank Banks based outside the U.S. have been unlikely beneficiaries of the Federal Reserve’s interest-rate policies, and they are likely to keep profiting as the Fed changes the way it controls borrowing costs.… Continue reading Parking Money At The Fed
MoneyBeat (WSJ Blog) – Two Major U.K. Schemes Join Hedge Fund Pullback Two of the largest pension funds in the U.K. are cutting their exposure to hedge funds amid a growing backlash against high fees and lackluster performance. The £20 billion ($32.4 billion) Railways Pension Scheme currently has £1 billion invested in hedge funds but… Continue reading More Bad News For Hedge Funds
Real Time Economics (WSJ Blog) – Inflation Data in the U.S. Is Built Around a Survey that People Increasingly Won’t Take Economists and market participants in the U.S. like to fixate on every wiggle in consumption and inflation data. A tenth of a percentage point increase in the Consumer Price Index can spark fears that… Continue reading The Construction Of CPI