The Wall Street Journal – New Greek Bonds, Same Old Doubts Greece’s new government bonds, issued as part of the country’s huge debt restructuring, hit the market Monday—and confirmed that few investors think Greek prospects are bright. Even though the exchange, when fully completed, will cut €100 billion, or about $130 billion, off of Greece’s… Continue reading Greece
<Click on chart for larger image> MarketBeat (WSJ Blog) – When Will High Gas Prices Impact Stocks? “The U.S. equity market usually as a whole reacts negatively to oil supply shocks,” says Adam Parker, chief U.S. equity strategist at Morgan Stanley. “While we haven’t had a ‘shock’ yet, we have been surprised by the stock… Continue reading Pain At The Pump
The Economist – Behind the jobs curve The chart above gives a sense of the magnitude of the error in initial estimates over the course of the downturn (data here). Both lines show the cumulative changes in employment from June of 2009—the final month of the recession. The dark blue line shows the total according… Continue reading Employment
Bloomberg.com – Banks Buy Treasuries at Seven Times 2011 Pace U.S. banks bought more government and related debt in the first two months of 2012 than they did in all of last year, an endorsement of Federal Reserve Chairman Ben S. Bernanke’s assessment of the economy that’s boosting demand for bonds even with yields near… Continue reading Banks Buy Treasuries
The Financial Times – Earnings forecasts take a bullish turn Analysts last week upgraded more companies’ earnings forecasts globally than they downgraded for the first time since May last year. After 41 weeks of consecutive downgrades, net earnings per share revisions for next year turned positive powered by a surge in upgrades of Japanese companies… Continue reading Earnings Forecasts
The Wall Street Journal – Uncle Sam’s Teaser Rate Low interest rates disguise the federal debt bomb One business story these days is how companies are crashing the debt markets to raise money at today’s bargain rates. The same goes for the world’s biggest borrower, Uncle Sam, which is also quietly benefitting from historically low… Continue reading Low Interest Rates Forever
The Financial Times – Few hedge funds gain in Greek bond saga It was a high-risk, speculative bet in Greece’s tumultuous bond market: a wager that would pay off if the Greek government faltered in its landmark bond restructuring at the final hurdle. The gamble was thought to have been popular among the hedge fund… Continue reading Hedge Funds
<Click on chart for larger image> Bloomberg.com – Soaring Target2 Imbalances Stoke German Risk Angst German angst is growing as an entry on the Bundesbank’s balance sheet swells to a sum worth about 20 percent of economic output, a sign of the extent to which Europe’s largest economy is funding the region’s laggards. The European… Continue reading The Bundesbank’s Balance Sheet
Bloomberg Businessweek – Apple Woulda-Coulda Had the Dow at 15,290 Back in the lapsarian fog of June 2009, the keepers of the Dow Jones Industrial Average finally got around to tapping Cisco, networking stalwart, to replace the bankrupt General Motors. Cisco, remarked a managing Dow Joneser, was added because its products are “vital to an… Continue reading An Apple A Day Keeps The Bear Market Away
None Today
The New York Times – As Fed Officials Prepare to Meet, They Await Clearer Economic Signals The scheduled meeting Tuesday of the Federal Reserve’s policy-making committee is unlikely to resolve the foremost question confronting the central bank: What happens next? The Fed plans to complete by the end of June its current campaign to suppress… Continue reading The Federal Reserve Meets On Wednesday
Business Insider – Guggenheim Partners: It’s Time To Short The Treasury Market ‘Ponzi Scheme’ In a recent letter, Scott Minerd of Guggenheim Partners argues that thanks to the world’s central banks, the economy — at least in the US — has entered a self-sustaining recovery, and that domestic investments will continue to do well. And… Continue reading Another Hater Of Treasuries