Newsclips
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October 3, 2011
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Comment Yesterday we hosted a conference call titled Correlation, Recession and Governments. If you missed the call, here are links to the handout, audio, and webcast. Here is a summary of what was said: Market Correlations Are At An All-Time High The correlation between individual stocks and the S&P 500 is at an eighty-year high.… Continue reading Correlation, Recession And Governments
The Wall Street Journal – Fed’s Twist May Prompt Bigger Turn Operation Twist” might be more powerful than many investors expect. As the Federal Reserve Bank of New York prepares to release on Friday new details about the central bank’s rate-lowering program, some bond-market strategists have done their own back-of-the-envelope assessment already. Their conclusion: Operation… Continue reading Will Operation Twist Matter?
The Wall Street Journal – Euro-Zone Inflation Surges Consumer prices in the 17-member euro zone rose at the fastest pace in almost three years even as the economy slowed sharply, leaving the European Central Bank’s rate setters to make a very tough call when they meet next week. The European Union’s official statistics agency Eurostat… Continue reading EuroZone Inflation Surprises
Telegraph reporter Peter Oborne, ed-editor of the Financial Times Sir Richard Lambert, and an EU commission spokesman were all part of a panel discussion on the BBC’s Newsnight. Oborne said the Financial Times editorial page under Lambert in the 1990s was in favor of the UK joining the euro and thought that would have been… Continue reading EU Crisis Must See TV
The Economist – The euro crisis: Is anyone in charge? A look behind the drifting and squabbling to see who is really to blame, and what they’re thinking IN THE Centennial Hall in Wroclaw, Poland, in early September, Jean-Claude Trichet, president of the European Central Bank, warned Europe’s finance ministers how grave the global financial… Continue reading How To Fix The Euro
<Click on chart for larger image> <Click on chart for larger image> Bloomberg.com – Corporate Bond Issuance Plunges on ‘Armageddon’ Scenarios Corporate bond offerings worldwide plunged in the third quarter to the lowest level since Lehman Brothers Holdings Inc.’s 2008 failure as Europe’s sovereign debt crisis caused investors to shun all but the safest securities.… Continue reading Corporate Bond Issuance Dives
The Economist – The world economy: Be afraid Unless politicians act more boldly, the world economy will keep heading towards a black hole Most of the blame for this should be heaped on the leaders of the euro zone, still the biggest immediate danger. The doom-laden lectures from the Americans and others in Washington last… Continue reading The World Economy
The Economist – Investment and lobbying: Money and politics Ask what your country can do for you MUCH as some businesses whine about government intrusion, others do pretty well out of it. An index based on the amount of lobbying that American firms do has outperformed the broader market since its creation in 2008; data… Continue reading Does Lobbying Pay?
Bloomberg – Joseph Brusuelas: Why Credit Default Swaps on Morgan Stanley Have Skyrocketed (no link) Discussion on why credit default swaps on Morgan Stanly now exceeds that of UniCredit and Intesa Sanpaolo, two banks at risk of failure, is permeating markets this morning. In the event of a hard default in Greece that sets of… Continue reading Morgan Stanley
The Economist – Emerging markets: One more such victory The emerging economies are winning the currency war. No one is celebrating But the invasion of foreign capital that so worried Mr Mantega has now turned into a shambolic retreat. The outflows have dragged down the exchange rates of almost every emerging economy since the beginning… Continue reading Emerging Markets
The Economist – Buttonwood: Mood swings Financial markets are displaying a split personality In the third week of September, for example, equity markets plunged because of worries about the global economy. Then in the fourth week, they initially rebounded on hopes that Europe’s political leaders were at last coming up with a plan for the… Continue reading Volatile Markets