Huffington Post – The Fragility of the US Markets “Did you hear? The stock market broke the other day. Stocks went inexplicably haywire, costing investors millions in a matter of seconds. It appears to be the result of a single market participant.” It should frighten you to know that the quote above would have been… Continue reading Market Talk
The Financial Times – A lifeline is thrown to the periphery One of the main reasons why the measures taken in the eurozone over the last two years have failed to address the crisis is that the decisions were often taken too late. Countries in financial difficulties only sought support when market conditions had deteriorated… Continue reading Europe Acts Too Slow
<Click on chart for larger image> CNN Money – Gas prices climb 30 cents a gallon Gas prices continued their slow but steady march higher Tuesday, surpassing a nationwide average of $3.63 cents a gallon on the back of refinery problems in the United States and higher crude oil prices globally. Nationwide average gasoline prices… Continue reading Gas Prices On The Rise
The Wall Street Journal – Home Prices Climb as Supply Dwindles Home prices rose by their largest percentage in at least seven years during the second quarter, propelled by low inventories of properties for sale and high demand for bargain-priced foreclosures, according to two reports Tuesday. Prices rose by 2.5% in June from a year… Continue reading Home Prices Climb
The Telegraph – Greek exit from euro is ‘manageable’ says Jean-Claude Juncker A Greek departure from the eurozone would be “manageable” said a top Brussels policy-maker, as figures showed that its major economies are in painful slowdown. Jean-Claude Juncker, the Luxembourg prime minister who leads the eurozone’s finance ministers group, yesterday addressed the prospect of… Continue reading Greek Exit
The Boston Globe – Economists: Fed Action will have minor impact Eric Rosengren, president of the Federal Reserve Bank of Boston, has taken an unusually public and strong stand in urging his fellow policy makers at the Federal Reserve to take additional actions to strengthen the US economy. But even if the central bankers follow… Continue reading Any Additional Action By Central Banks Will Have Little Impact
Bloomberg.com – King Backs Cameron Budget Squeeze as BOE Reduces Growth Outlook Bank of England Governor Mervyn King signaled continued support for Prime Minister David Cameron’s budget squeeze as he presented lower forecasts for economic growth and said Britain’s recovery will be a “slow process.” “If you go back to 2010 when the rebalancing program… Continue reading BoE Cuts Growth Forecasts
CNBC – Yuan Weakness Reflects Economic Reality in China Official data from China this week may reinforce the view that the economy is close to, if not at, a bottom, but the country’s currency seems to be telling a different story. The Chinese renminbi ] posted its first annual decline this year since 2005, dipping… Continue reading China
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MarketWatch – Good news: Earnings growth is slowing Worried that lower earnings growth will lead to a bear market? You’re not alone. Almost everyone else is concerned too. But, by following the herd, you run the distinct possibility of becoming too worried: The stock market historically has performed better when earnings growth is slower than… Continue reading Earnings vs. Stock Returns
<Click on chart for larger image> <Click on chart for larger image> MarketBeat – Charts of the Day: Beware if Earnings History Repeats As if there weren’t enough warning signs flashing from earnings season, the always thoughtful John Mauldin offers a one-word assessment of the future for corporate profits: Beware. “Currently, profit margins are cyclically… Continue reading Earnings vs. Revenues
The Wall Street Journal – Jon Hilsenrath: Fed Official Calls for Bond Buying Eric Rosengren, president of the Federal Reserve Bank of Boston, called on the Fed to launch an aggressive, open-ended bond buying program that the central bank would continue until economic growth picks up and unemployment starts falling again. His call came in… Continue reading Federal Reserve Policy