Bloomberg.com – P&G to Apple Hurt by Strong Dollar Keep S&P 500 Profits in Check U.S. companies are poised to post some of their weakest quarterly earnings reports in four years, in part as a stronger dollar erodes the value of toothpaste to tablet computers sold overseas. Earnings at Procter & Gamble Co. (PG), the… Continue reading A Strong Dollar Hurting Overseas Profits
The Weekly Standard – The Death of Economics Economists fare the worst in understanding politics. Under QE, the gap between American families that own equities and mere wage-earning families has widened dramatically. Government, as economist Robert Johnson put it, has become “an insurance agency for the rich and powerful with premiums paid by the middle… Continue reading The Death Of Economics
Bloomberg.com – IMF Report Decoded: Fed May Bring Doomsday The International Monetary Fund lowered its forecasts for global growth today in an update to its annual World Economic Outlook report. It’s worried. Growth in world output will be 0.2 percent lower in 2013 and 2014 than it had projected in April, the IMF said. All… Continue reading The IMF Is Bearish On The Global Economy
The Financial Times – Martin Wolf: Why China will not buy the world China frightens the west. Rarely, however, do westerners look at how the world looks to China. Yes, it has made enormous economic strides. But it still sees a world economy dominated by developed economies. Among the few westerners able to look at… Continue reading China Will Not Buy The World
Real Time Economics – Fed Looks at More Than Jobs Report for Labor Market Clues The Federal Reserve‘s next policy move will be determined in large part by central bankers’ outlook for employment. (It will not be the only factor: a global crisis or unexpected domestic shock could sway policy decisions.) The Bureau of Labor… Continue reading How The Federal Reserve Analyzes The Jobs Market
The Financial Times – US bank earnings – pros and cons Still, even bulls have to admit that plenty of good news is already priced in. The KBW Bank index, as well as regional banks such as BB&T and M&T, have marched to new post-crisis highs since Ben Bernanke began in May to discuss the… Continue reading U.S. Banks
h/t The Big Picture
None Today
How bad was last Friday’s (July 5) bond market selloff? The tables below attempt to answer this question. Note we use total return as our metric. We believe this measure best adjusts for different interest rates levels and is the best way to compare movements when interest rates are 14% to movements when interest rates… Continue reading Belated Look At Friday’s Bond Market Selloff
The Wall Street Journal – Apartment Rents Rise, But the Pace Is Slowing Apartment landlords are continuing to raise rents, but there are signs that the pace is slowing. Nationwide, landlords increased rents an average of 0.7% to $1,062 in the second quarter, a real-estate research firm. While that is a hair above the 0.6%… Continue reading Rents and Inflation
The Wall Street Journal – Futures Higher as Alcoa Delivers Some Cheer Results Set the Tone for Global Markets to Rise Shares of Alcoa advanced in premarket trading, after the Dow component reported second-quarter adjusted earnings that were higher than analysts expected. Revenue was in line with forecasts. The company also affirmed its forecast that… Continue reading How Earnings Estimates Are Made…And Beat
The Huffington Post – Fed Puts Economy At Risk By Letting Interest Rates Soar The Fed claims that it just wanted to be open and honest with the market about its plans: If the economy keeps improving, then the Fed will taper bond purchases. But if the economy doesn’t improve, then it won’t taper. But… Continue reading Maybe Interest Rates Matter After All