The Wall Street Journal – For Euro Investors, Time to Check the Fine Print The risk that the euro could break up is now so pressing that Nomura Holdings is advising investors to check the small print on their bonds, as legal frameworks may determine whether the assets stay in euros, or switch into “new”… Continue reading Will The Euro Split Up?
<Click on chart for larger image> Comment See the chart above. In about six weeks the current debt ceiling of $15.194 trillion will be reached. With no supercommittee deal, we will need Congress to pass a bill to raise this ceiling. In August, we were talking about default. Will it come to that again? CNN… Continue reading The Supercommittee Comes Up Empty, Will The Debt Ceiling Get Raised?
The Wall Street Journal – In This Crisis, Companies Keep Selling Bonds Turbulence roiling government-bond markets may carry reminders of the 2008 financial crisis, but U.S. corporate debt markets have been relatively unscathed so far. Corporate bonds and loans are attracting investors large and small amid a perception that corporate America is relatively strong; there’s… Continue reading Corporate Bond Issuance
<Click on chart for larger image> Comment See the chart above. If M&A deals indicate some level of confidence in the future, this chart is not showing a lot of confidence.
The Wall Street Journal – Housing Market May Be Nearing a Bottom For the first time in a long time, housing figures are coming in better than expected. The National Association of Home Builders’ sentiment index jumped three points this month to 20, its highest reading in over a year. Last week, the Commerce Department… Continue reading Is Housing Bottoming?
Barron’s – Bad Tidings: S&P 500 Companies Issue Negative Guidance S&P 500 companies have, for the most part, beaten analysts’ third quarter earnings expectations. But their projections for the fourth quarter haven’t been as impressive, as compared to expectations, according to a report from analyst John Butters of FactSet. Of the 106 companies that have… Continue reading Company Guidance Update
The Wall Street Journal – China Outflows Signal Economic Woes China had its first monthly outflow of foreign currency since 2007 in October, signaling that global investors are pulling out money on fears over the global economy and reduced expectations that the yuan will appreciate. Inflows of capital into China have been slowing in recent… Continue reading China Sees Outflows
The New York Times – GRETCHEN MORGENSON: Scare Tactics in Greece Leading the charge is BNP Paribas, the big French bank, which has been hired by the Greek government to help persuade investors to accept a deal that would cut the value of their investments in half. On paper, this restructuring would be voluntary. Bond… Continue reading Sovereign CDS
Barron’s Online – No Other Way Out: The ECB Bails Out Europe What was never supposed to happen, the ECB will likely buy bonds with printed money — just like the Fed. The end game for the European debt crisis is becoming clearer. The European Central Bank will bail out the untenable sovereign debt of… Continue reading Will The ECB Print Money?
The New York Times – European Rift on Bank’s Role in Debt Relief The financial stability of Europe has come down to one institution, the European Central Bank, which is now under heavy new pressure to rescue the euro — or possibly see it collapse. José Luis Rodríguez Zapatero, Spain’s prime minister, on Thursday became… Continue reading Germany Will Still Not Allow The ECB To Print Money
Bloomberg.com – U.S. Economy Growing at Fastest Pace of the Year The U.S. economy may end 2011 growing at its fastest clip in 18 months as analysts increase their forecasts for the fourth quarter just a few months after a slowdown raised concern among investors. Economists at JPMorgan Chase & Co. (JPM) in New York… Continue reading Is U.S. Economic Growth Good?