The Financial Times – Carry trade strategy not dead but resting Statements of the blindingly obvious rarely have such a big impact on markets. Akira Amari, Japan’s economy minister, on Tuesday said import prices could rise if the yen weakened too much. In response, the yen leapt 1.5 per cent, a hefty move for the… Continue reading Where Did The Carry Trade Go?
Bloomberg.com – World Bank Cuts Growth Forecasts as Developed Nations Lose Steam The World Bank cut its global growth forecast for this year as austerity measures, high unemployment and low business confidence weigh on economies in developed nations. The Washington-based bank yesterday projected the world economy will expand 2.4 percent, down from a June forecast… Continue reading World Bank Cuts Forecasts
The Financial Times – Spain calls on Germany to boost growth Mariano Rajoy has called on Germany and other creditor countries in the eurozone to do more to stimulate growth, arguing that a switch to a more expansionary policy would boost economic recovery across the single currency area. “I think that in this moment, when… Continue reading Spain
h/t The Big Picture
Barrons – Do January Returns Bode Well for 2013? Spoiler alert: The “first five days of January” indicator tells us nothing about how the stock market will perform in 2013. I know that’s disappointing, since the Dow Jones Industrial Average rose 1.7% over the first five days of this year, and the Standard & Poor’s… Continue reading The Myth Of The First Trading Week Of The Year
<Click on chart for larger image> Comment Friday Jim Bianco was interviewed on Yahoo Finance about the bond market. To watch the interview, click on the picture above. To view any of our recent interviews click here. In the interview, we noted many of the points we have discussed in recent weeks (here, here and… Continue reading A Kind Word For Bonds
Comment Jim Bianco was on CNBC yesterday discussing Dell and the markets. To view the interview click on the image above. To view any of our recent interviews click here. Regarding our Dell comments, we noted that equities markets typically peak with when mergers are hyperactive. As the chart below shows, merger activity is at… Continue reading Will Dell Kick Off A Merger-Mania Period?
Reuters – Fitch warns U.S. AAA at risk from debt ceiling struggle There is a material risk the United States would lose its triple-A if there is a repeat of 2011 wrangling over raising the country’s self-imposed debt ceiling, rating firm Fitch said on Tuesday. “If anything the pressure on the U.S. rating is increasing,”… Continue reading Fitch Warns Uncle Sam
The Financial Times – Junk-bond prices point to return of bulls The junk-bond market is sending a bullish signal for the global economy in 2013, with investors in US high-yield securities earning higher returns so far this year than those who have bought investment-grade debt. High-yield bonds are an acute barometer of risk appetite and… Continue reading Junk Bonds
The Wall Street Journal – Obama Escalates Debt Fight President Warns Congress He Won’t Pay ‘Ransom’; GOP Insists on Spending Cuts President Barack Obama, facing a battle over raising the U.S. borrowing limit, made clear Monday that he sees no alternative to Congress voting for an increase and said that not doing so would be… Continue reading The Debt Ceiling
Bloomberg.com – Draghi’s Bond Rally Masks Debt Doom Loop Trapping Spain The bond rally that has sent Spanish borrowing costs to 10-month lows has distracted attention from the nation’s growing debt pile. Spain’s budget deficit probably exceeded 9 percent for a fourth year in 2012 as Europe’s highest unemployment rate, a third recession in four… Continue reading Still Pain In Spain
Bloomberg.com – William Pesek: Cayman Islands Too Far Away? Just Build Your Own Fifteen years ago, China was ecstatic to regain control of Hong Kong and all it represented: freshly minted billionaires, a culture in which corporate chieftains outshine movie stars, and splashy initial public offerings that rival New York and London. Just before the… Continue reading A New Cayman Island