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Employment In Pictures
August 4, 2017
The Wall Street Journal – July Jobs Report: Everything You Need to Know U.S. employers added a seasonally adjusted 209,000 jobs in July. The unemployment rate fell to 4.3%. Economists surveyed by The Wall Street Journal expected employers to add 180,000 jobs and unemployment to tick down to 4.3%. Bloomberg – Jobs in U.S. Haven’t… Continue reading Employment In Pictures
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Euro may be Over-cooked, but Not Destined to Crumble
August 4, 2017
The Financial Times – Euro surge poses new headache for the ECB Euroboom is firing on all cylinders. Having been dulled by more than two years of ECB bond-buying, the euro is the best performing G10 currency this year. Its real exchange rate is now at its highest level since before the start of QE… Continue reading Euro may be Over-cooked, but Not Destined to Crumble
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Do Central Banks Always Feel a Need to Gain Control?
August 4, 2017
The Financial Times – Congenitally pessimistic central banks cannot handle the good news Inflation’s weakness despite decent growth should be a cause for celebration Economists are increasingly reinvigorating the idea that, after a severe downturn, running an economy “hot”, or temporarily above its inflation target, can further enlarge its potential. A failure to support even… Continue reading Do Central Banks Always Feel a Need to Gain Control?
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Focusing On Jobs, Not Inflation
August 4, 2017
Bloomberg View – Tim Duy: Why These Job Numbers Matter to the Fed The central bank will continue to take a cue from labor market strength rather than inflation weakness. Even though the Federal Reserve is poised to start shrinking its $4.5 trillion balance sheet, the outlook for continued rate increases is very much in… Continue reading Focusing On Jobs, Not Inflation
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Paul Singer: Passive Investing Is Killing Capitalism
August 4, 2017
Bloomberg Markets – Paul Singer Says Passive Investing Is ‘Devouring Capitalism’ Billionaire Paul Singer is warning of a growing and menacing threat: passive investing. “Passive investing is in danger of devouring capitalism,” Singer wrote in his firm’s second-quarter letter dated July 27. “What may have been a clever idea in its infancy has grown into a blob which… Continue reading Paul Singer: Passive Investing Is Killing Capitalism
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The BOE’s Effect On The Bond Market
August 4, 2017
The Financial Times – Sterling bonds: gloves coming off The trouble is that the total market available to investors has not changed all that much once the BoE’s £10bn bond purchase programme is taken into account. Illiquidity tends to mean a wider credit spread. Barclays estimates that the premium attributable to illiquidity has doubled to 30… Continue reading The BOE’s Effect On The Bond Market
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Corporate Bond Upgrades And Credit Spreads
August 4, 2017
The Wall Street Journal – Bond Upgrades Relieve Pressure on Commodity Firms Along with the potential for lower rates on bonds or credit lines, investment-grade status allows companies like Cheniere to issue bonds due in decades rather than years. They also have an easier time accessing funding because investment-grade bond markets are relatively liquid, and their… Continue reading Corporate Bond Upgrades And Credit Spreads
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Emerging Market Flows
August 4, 2017
The Financial Times – Eric Platt: Low rates, softer dollar bolster inflows to emerging market funds Investors ploughed more cash into emerging market funds in the week since the asset class’ stock benchmark touched its highest level since 2014. Emerging market equity funds counted $2.2bn of inflows in the week to August 2, while EM bond… Continue reading Emerging Market Flows
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Oil Trader Nicknamed “God” Closes Fund
August 4, 2017
Bloomberg Business – The Oil Trader Known as ‘God’ Is Closing Down His Main Hedge Fund Andy Hall, the oil trader sometimes known in markets as “God,” is closing down his main hedge fund after big losses in the first half of the year, according to people with knowledge of the matter. The capitulation of one… Continue reading Oil Trader Nicknamed “God” Closes Fund
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Cartoons
August 4, 2017
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What Next From Central Banks?
August 3, 2017
Comment At the beginning of the year, the Wall Street’s consensus was for rates to go higher. The question was “when will 10-year yields hit 3%?”, not if. Predictably rates have gone the other way and are lower now than the start of the year. See the first chart below. The next two charts show… Continue reading What Next From Central Banks?