Charts of the Week Topics Covered This Week Include: Company Guidance Is At A 10-Year High, What Does It Mean? Best September For Stocks Since 1939 Equity Volatility: No Complacency Over Rally Partial Contribution of VIX To U.S. Equities Weakly Negative How Did Dudley Arrive At $500 Billion For QE2? How Did Dudley Arrive At… Continue reading Untitled
Jim Bianco will be Bloomberg TV at 2:50 PM CT today. Earnings season officially kicks into gear with Alcoa’s October 7 release. While many believe quarterly earnings releases to be somewhat gamed and therefore useless, company guidance has received a lot of attention lately because of the sheer number of companies that are guiding earnings… Continue reading Company Guidance Is At A 10-Year High, What Does It Mean?
Bloomberg.com – Global Central Bank Action May Follow BOJ Moves on Rates The Bank of Japan may have acted first in a round of central bank action to prop up the global economy as recoveries in industrial nations falter. The unexpected decision by the Japanese central bank yesterday to drop its interest rate to “virtually… Continue reading Global Central Banks May Follow BOJ Rate Move, Currency War Is Feared
<Click on chart for larger image> The Financial Times – Lex:Bank of Japan An interesting choice of words from Masaaki Shirakawa. Investors hearing of a “comprehensive monetary easing” policy might have been braced for something radical from the Bank of Japan’s governor: a commitment to start monetising the government’s horrendous deficit, perhaps or a big… Continue reading BOJ Cuts Rates, Expands Its Balance Sheet
The Wall Street Journal – Mortgage Investors Are Set for More Pain For mortgage investors, the recent suspension of foreclosures could potentially cause further losses in the already-battered $2.8 trillion market for residential mortgage-backed securities. In the past two weeks, three major loan-servicing companies put thousands of foreclosure sales and evictions on hold in the… Continue reading MBS
<Click on chart for larger image> Bloomberg Businessweek – llinois Financial Health Grows Worse, Comptroller Hynes Says Illinois’s deteriorating financial condition threatens to swallow up more than half its general- fund budget in the next fiscal year, Comptroller Dan Hynes said. The financial picture drawn by Hynes in a report yesterday projects a fiscal 2012… Continue reading Illinois
<Click on chart for larger image> Telegraph.co (UK) – Ireland should honour its debts, says Irish business federation chief Danny McCoy “Ireland should honour its debts if it can,” said Danny McCoy, head the Irish Business and Employers Confederation (IBEC). “The country makes a living taking capital from people and looking after it, and you… Continue reading Ireland
Bloomberg.com – Bernanke Counters Fed Unity Doubt as Regional Chiefs Echo Federal Reserve Chairman Ben S. Bernanke is leaving little doubt that he has enough support for more unconventional easing as soon as November. In one week, New York Fed President William Dudley, the Boston Fed’s Eric Rosengren and Chicago’s Charles Evans advocated further Fed… Continue reading The Federal Reserve
The Wall Street Journal – Mexico Gets $1 Billion, 100 Years The Mexico deal, which was increased from an initial $500 million, is the largest century bond offer on record and the first 100-year government bond to come out of Latin America, according to research firm Dealogic, whose data go back to 1995. Only two… Continue reading Mexico’s 100-Year Bond
The New York Times – Bailout Loss Estimated at $29 Billion In a report released on Tuesday, the administration said it expected a $17 billion loss from its investments in General Motors, Chrysler and the auto finance companies, as well as a $46 billion loss from housing programs like the mortgage modification program known as… Continue reading How Much Money Was Lost From The Bailouts?
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The New York Federal Reserve – Bill Dudley: The Outlook, Policy Choices and Our Mandate Remarks at the at the Society of American Business Editors and Writers Fall Conference, City University of New York, Graduate School of Journalism, New York City. With respect to the first question, some simple calculations based on recent experience suggest… Continue reading How Did Dudley Arrive At $500 Billion For QE2?