Newsclips
Who Are the 2020 Leaders?
July 11, 2019
The first Democrat debate appears to have only weakened front-runner Joe Biden's prospects for nomination. According to bettors, this has improved Trump's odds of winning next year's election.
The first Democrat debate appears to have only weakened front-runner Joe Biden's prospects for nomination. According to bettors, this has improved Trump's odds of winning next year's election.
Today's topics include the FOMC minutes, negative-yielding bonds, bank stocks, returns vs. valuations, minimum wage in the U.S., IPO headwinds, rare earth mineral production and the plight of low-skilled workers.
#DeutscheBank derivatives book illustrated. $DB pic.twitter.com/CqXfF2AYQC — Timo Oinonen (@oinonen_t) July 9, 2019
Later today Chair Powell will discuss the outlook for monetary policy. How the Fed actually conducts policy is unlikely to be brought up. However, the effective fed funds rate continues to creep above the target, creating more headaches for policymakers.
Today's topics include Powell's testimony, the odds of a rate cut, earnings, the strong dollar, LIBOR, bank stress tests, high yield ETF flows, EU cuts growth forecasts and analyzing Fedspeak.
The market is still pricing in a 100% probability of a 25 basis point cut. However, given the yield curve's inversion, a 50 basis point cut might make more sense.
Q2 earnings growth is expected to decline by 2.90%. Revenues are expected to grow at just 3.30%, not much above the inflation rate of 1.8%.
Today's topics include ECB bond buying, negative yielding euro junk bonds, U.S. stocks, currency volatility, Libor's death, hedge fund performance, gold and Deutsche Bank.
The probability of a rate cut is still 100%. But the probability of a 50 basis point rate cut, to a range of 1.75% - 2.00%, all but disappeared.
We offer our thoughts on the president's latest nominations for the Fed.