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Hilsenrath Tries Telling Us The Federal Reserve Will Not Taper Again, Are The Markets Now “Getting It?”

June 14, 2013

Real Time Economics – Jon Hilsenrath: Analysis: Fed Likely to Push Back on Market Expectations of Rate Increase Federal Reserve officials have been trying to convince investors for weeks not to overreact when the central bank starts pulling back on its $85 billion-per-month bond-buying program. An adjustment in the program won’t mean that it will… Continue reading Hilsenrath Tries Telling Us The Federal Reserve Will Not Taper Again, Are The Markets Now “Getting It?”

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Investors Sell Bonds, But No Great Rotation

June 14, 2013

<Click on chart for larger image> Reuters.com – U.S. bond funds hit with more than $10 billion in outflows – ICI Investors in mutual funds based in the United States pulled more than $10 billion out of bonds funds in the week ending June 5, on fears the U.S. Federal Reserve would begin winding down… Continue reading Investors Sell Bonds, But No Great Rotation

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Slow US Growth Continues

June 14, 2013

The Wall Street Journal – Top U.S. CEOs Expect Slow Economic Growth Ahead The U.S. economic recovery will remain slow throughout this year, according to a survey of top corporate executives, despite a buoyant stock market and rising consumer confidence.  Members of the Business Roundtable, a lobbying group for CEOs at large U.S. companies, said… Continue reading Slow US Growth Continues

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Inflation Expectations

June 14, 2013

The Wall Street Journal – Fed’s Bond-Buying Wild Card: Inflation Expectations Many investors have lowered their expectations for future inflation, a shift that could get the attention of Federal Reserve officials as they consider the course of their bond-buying program at a policy meeting next week. The Fed has a 2% inflation goal and doesn’t… Continue reading Inflation Expectations

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Is Abenomics A Failure?

June 14, 2013

The Economist – Not so super The “third arrow” of reform has fallen well short of its target; time for Shinzo Abe to rethink EARLIER this year Shinzo Abe, Japan’s prime minister, unveiled the first two “arrows” of his three-point economic plan—monetary easing and fiscal stimulus—and hinted at structural reforms to come. Japan’s stockmarket soared… Continue reading Is Abenomics A Failure?

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State Pension Funds

June 14, 2013

The Economist – Ruinous promises States cannot pretend to be in good financial health unless they tackle pensions JERRY BROWN, the veteran governor of California, is basking in glory. The golden state, once described as America’s Greece because of its fiscal woes, is reporting a $1.2 billion budget surplus (see article). But the euphoria is… Continue reading State Pension Funds

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Emerging Markets

June 14, 2013

The Economist – The end of the affair The prospect of less quantitative easing in America has rocked currency and bond markets in the emerging world THERE are many reasons why a fund manager might want to sell the rand. South Africa’s economy is barely growing. Unemployment, at 25% of the workforce, is on a… Continue reading Emerging Markets

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China

June 14, 2013

The Economist – The cheapest thing going is gone After enduring a decade of criticism for its weakness, China’s currency now looks uncomfortably strong The price of labour is also rising faster in China than in its principal trading partners. The Economist has calculated an alternative “real” exchange rate, weighted by trade with America, the… Continue reading China

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Corporate Profits

June 14, 2013

The Wall Street Journal – Behind the Big Profits: A Research Tax Break Strong first-quarter corporate profits may not be quite as good as they look. An analysis by The Wall Street Journal shows that the extension of a big tax credit quietly boosted the profits of dozens of companies. Under accounting rules, the companies… Continue reading Corporate Profits

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Euro-Zone Growth

June 14, 2013

The Wall Street Journal – Euro-Zone Risks Return to Fore Arresting the rise is exceptionally hard in a shrinking economy, and European authorities have begun to reckon with this by slowing the pace of fiscal cuts, in the hopes of supporting economic growth. But a larger problem may be looming: In order to restore their… Continue reading Euro-Zone Growth

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What Does Energy Independence Mean?

June 14, 2013

The Wall Street Journal – U.S. Oil Notches Record Growth Rise in Production Is World’s Largest; Fueled by Fracking U.S. crude-oil production grew by more than one million barrels a day last year, the largest increase in the world and the largest in U.S. history. In the latest sign of the shale revolution remaking world… Continue reading What Does Energy Independence Mean?

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Chinese Credit Creation

June 14, 2013

The Economist – Taking credit for nothing China’s credit boom has got people worried. Should they be? It is natural for credit to deepen over time in a developing country. But when credit departs too far from its underlying trend, trouble often ensues. Mathias Drehmann of the BIS calculates that when the deviation exceeds 10%… Continue reading Chinese Credit Creation