Newsclips
Inflation Threat at a Post-crisis High
January 26, 2018
Bubbles are increasingly floating to the surface indicating an awakening of a beast not seen in over a decade.
Bubbles are increasingly floating to the surface indicating an awakening of a beast not seen in over a decade.
Bloomberg – Here’s Why OPEC’s Oil Cuts Might Result in Price Spikes Supply disruptions may climb materially this year: Citigroup “When you have enormous stockpiles, these stockpiles serve to dampen and insulate the commodity from idiosyncratic shocks like supply disruptions, like geopolitical risk,” said Mark Keenan, global commodities strategist and head of Asia-Pacific research at Societe… Continue reading Fretting Over More Oil Supply Disruptions
Bloomberg – U.S. GDP Grows Below-Forecast 2.6% on Trade, Inventory Drags The U.S. economy expanded at a slower-than-projected pace in the fourth quarter on drags from trade and inventories, offsetting strength in consumer spending and business investment that signals solid momentum entering 2018. Gross domestic product rose at a 2.6 percent annualized rate after 3.2… Continue reading Market Capitalization As A Percentage Of GDP
The Wall Street Journal – Dollar Resumes Slide After Rallying on Trump’s Comments The dollar fell Friday, reversing a rally that had followed comments from President Donald Trump, as traders dissected conflicting messages from U.S. officials. The WSJ Dollar Index, which tracks the greenback against a basket of 16 currencies, was down 0.4% in midmorning trading Friday.… Continue reading The Dollar Continues To Fall Despite Trump’s Comments On Mnuchin
Bloomberg Business – Biggest Stock Sell Signal Since 2013 Sparked by Record Inflows Investors added the most money on record to equity funds last week as the earnings season began on a positive note and global stocks continued to post record highs. The rush to risk assets sparked a note of caution from Bank of America… Continue reading Global Equity Funds Continue To See Inflows
The Wall Street Journal – China Battles to Rein In a Surging Yuan The yuan’s resurgence is making the currency a policy headache for the Chinese government once again. If it keeps going up, government advisers and analysts say, it could encourage speculative fund flows from overseas and hurt exports amid already rising trade tensions between… Continue reading The Chinese Yuan Continues To Strengthen
The Financial Times – EM currency index hits record high A major index of emerging market currencies has hit its strongest level on record, as the dollar’s recent weakness magnifies the positive impact of wider optimism about global growth prospects. The MSCI Emerging Markets Currency index closed on Thursday at 1,727.55, overtaking the previous peak of… Continue reading EM Currencies
Bloomberg View – Mohamed A. El-Erian: Draghi Acknowledges Twin Policy Challenges European Central Bank President Mario Draghi’s remarks Thursday were a reminder that he faces two increasingly tricky challenges: balancing stronger-than-expected economic expansion against continued monetary stimulus; and overcoming “lowflation” in the context of a further appreciation of the euro currency. Reflecting the view of the ECB’s Governing… Continue reading The ECB’s Balancing Act
Bloomberg Businessweek – The Dark Side of America’s Rise to Oil Superpower The U.S. crowing from the top of a hill long occupied by Saudi Arabia or Russia would scramble geopolitics. A new world energy order could emerge. That shuffling will be good for America but not so much for the planet. With demand rising despite… Continue reading America’s Rise As A Crude Oil Superpower
The Wall Street Journal – Energy Stocks Finally Catch Up to Crude Rally Energy stocks are finally catching up to the rally in crude prices—a sign that investors are increasingly positive about the long-term prospects of oil companies. Accelerating global growth has increased demand for commodities, drawing down oil inventories and helping push oil prices to… Continue reading Energy Stocks Rally
The Wall Street Journal – The Global Economy Is Doing Great. Be Afraid. The problem with this thesis, of course, is that it might already have happened. U.S. bank stocks are up a quarter since the start of September, handily beating the market. Yet, for the past three years—broadly since investors started to believe that their… Continue reading Everyone Loves The Stock Market
The Financial Times – John Authers: What history tells us about the extraordinary markets of early 2018 History does not repeat itself, the saying goes, but it often rhymes. Where then can we find a market moment that rhymes with the extraordinary market conditions of early 2018? Taken together, this can fairly be called an unprecedented… Continue reading What History Tells Us About These Markets