How could the Fed be behind the curve when inflation breakevens out to 30-Year are all below Fed target? #FedCurve — Ed Bradford (@Fullcarry) July 28, 2014 Comment Earlier this week we came across the above tweet questioning inflation concerns since breakeven rates remain well-anchored. As our former colleague Howard Simons wrote in the past:… Continue reading TIPS’ Forecasting Ability
Comment Yesterday we hosted a conference call titled Some Perspective On This Week’s Economic Releases. To listen to the replay or view the handout, click below. Audio [audio:https://www.biancoresearch.com/bianco/SubscriberArea/073014.mp3|titles=Conference Call ] [pageview url=”https://www.biancoresearch.com/bianco/wp-content/plugins/PDFViewer/plugin.php?id=196″]
The New York Times – Strong Growth in G.D.P., but Some Caveats Well, that’s a nice surprise. Gross domestic product grew at a 4 percent annual rate in the second quarter of the year, far better than the 3 percent analysts had forecast, and a sharp turnaround from the 2.1 percent contraction (previously thought to… Continue reading More On GDP
[pageview class=”PDFViewer” url=”https://www.biancoresearch.com/bianco/wp-content/plugins/PDFViewer/plugin.php?id=198″] The Wall Street Journal – Fed Boosts Economic Outlook The Federal Reserve said it would scale back its purchases of mortgage and Treasury bonds to $25 billion monthly and delivered a modestly more upbeat assessment of inflation, jobs and the economy, hours after a stronger-than-expected U.S. growth report. “Economic activity rebounded in… Continue reading The FOMC Statement: The Fed Boosts Economic Outlook, Continues The Taper
Bloomberg.com – Greenspan Says Stocks to See ‘Significant Correction’ Former Federal Reserve Chairman Alan Greenspan said equity markets will see a decline at some point after surging for the past several years. “The stock market has recovered so sharply for so long, you have to assume somewhere along the line we will get a significant… Continue reading Alan Greenspan Speaks
Bloomberg.com – Argentina Declared in Default by S&P as Talks Fail Standard & Poor’s declared Argentina in default after the government missed a deadline for paying interest on $13 billion of restructured bonds. The South American country failed to get the $539 million payment to bondholders after a U.S. judge ruled that the money couldn’t… Continue reading Argentina In Default
<Click on chart for larger image> Bloomberg.com – Money Fund Rules Seen Triggering Commercial Paper Jam Corporate treasurers say a crackdown on money-market funds threatens to squeeze their access to the short-term financing they use for everything from paying the rent to meeting their payrolls. Companies from pesticide maker FMC Corp. (FMC) to power generator… Continue reading Commercial Paper
<Click on chart for larger image> MarketWatch.com – Even pros don’t know this about the market in August Get ready for one of the best months of the calendar for average stock market performance — August. Surprised? Welcome to the club. Like almost everyone on Wall Street, I bet you thought that August would be… Continue reading Stock Market Seasonals
Real Time Economics – Fork in Road for Japan Corporate Profits, Growth Japan’s corporate sector and the overall economy have come to a unusual fork in the road: even as exports and growth at home seem to be sputtering, domestic firms are posting stellar earnings. Economists say this peculiar dichotomy, which defies the view that… Continue reading Japan
Bloomberg.com – Greek Default Swap Trades Reported for First Time Since 2012 Trading in credit-default swaps tied to Greek government bonds has been reported by the Depository Trust & Clearing Corp. for the first time since the country undertook the biggest sovereign debt restructuring more than two years ago. There were 74 trades covering a… Continue reading Returning To Normal Markets In Greece
The Financial Times – US banks braced for large deposit outflows US banks are steeling themselves for the possibility of losing as much as $1tn in deposits as the Federal Reserve reverses its emergency economic policies and raises interest rates. JPMorgan Chase, the biggest US bank by deposits, has estimated that money funds may withdraw… Continue reading Bank Deposit Outflows
Bloomberg.com – Housing Market in France in ‘Meltdown’ After Hollande Rent Caps French President Francois Hollande’s government may have made a housing slump worse, pushing the construction market to its lowest in more than 15 years. Housing starts fell 19 percent in the second quarter from a year earlier, and permits — a gauge of… Continue reading Housing In France