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Fed Trying to Put an End to Their Grand Experiment, Will Others Follow?
July 24, 2017
The Financial Times – Bond bubble brews as central banks retreat from QE Fixed-income investors are acutely worried about the effect of less monetary easing Bob Michele, a bond fund veteran, is more worried than he has ever been. The head of global fixed income at JPMorgan Asset Management, the US fund house, has spent almost… Continue reading Fed Trying to Put an End to Their Grand Experiment, Will Others Follow?
Newsclips
Relief Still Favored for U.S. Dollar
July 24, 2017
Wall Street Journal – Dollar Slips as U.S. Politics Remain in Focus Investors fear the uncertainty will derail Trump administration’s pro-growth agenda The dollar was hit this week by fresh turmoil in Washington. On Thursday, Bloomberg reported that the investigation into ties between President Donald Trump’s campaign and Russia in last year’s election are extending to… Continue reading Relief Still Favored for U.S. Dollar
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Economists Expect Balance Sheet Announcement In September Despite Inflation Concerns
July 24, 2017
Bloomberg – Fed Set to Make September Balance-Sheet Announcement: Survey The U.S. Federal Reserve will unveil the timing of its balance sheet unwind in September and wait until December to raise interest rates again, according to a Bloomberg survey of 41 economists. Results of the survey, conducted July 18-20, showed economists are growing increasingly concerned… Continue reading Economists Expect Balance Sheet Announcement In September Despite Inflation Concerns
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Senate Bill to Test Health Care, Financial Bets
July 24, 2017
Washington Post – Senate Republicans plan to plow ahead with health-care vote this week The Senate returns to Washington on Monday with its GOP leaders determined to vote this week on their years-long quest to demolish the Affordable Care Act, even though the goal remains mired in political and substantive uncertainties. Central questions include whether enough Senate… Continue reading Senate Bill to Test Health Care, Financial Bets
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Comparing Tech Returns This Year To The Dot-Com Bubble
July 24, 2017
The Financial Times – Blue-chip US tech stocks off to best start to year since crisis Blue-chip US technology stocks are off to their best start to a year since the immediate aftermath of the financial crisis, as investors embrace growth stocks. The sector has climbed nearly 23 per cent this year, making it the… Continue reading Comparing Tech Returns This Year To The Dot-Com Bubble
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Measuring Political Risk: The UK vs. The Congo
July 24, 2017
Bloomberg.com – Britain Hasn’t Been This Politically Risky in 40 Years Parallels now with lost decade of U.K. political instability Investors mulling whether Theresa May will last past October Britain is having a flashback to the 1970s, and it’s not flared trousers making a comeback. As Parliament breaks for the summer, Prime Minister Theresa May… Continue reading Measuring Political Risk: The UK vs. The Congo
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Betting On Crude
July 24, 2017
Bloomberg – Oil Bulls Snap Out of Funk But OPEC Doubts Still Loom Large Oil optimists are back. They’re just not betting the ranch on a rally yet. Hedge funds added the most weekly wagers on rising West Texas Intermediate crude prices since February, with short-sellers on a steady retreat. Whether the improving mood sticks… Continue reading Betting On Crude
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OPEC’s Struggles In Limiting Output
July 24, 2017
Bloomberg – Libya, Nigeria Oil Output Caps Said to Be Ruled Out for Now Limiting oil output from Nigeria and Libya won’t be on the agenda when OPEC and other producers meet on Monday, with both African nations saying they’ll need to keep pumping at a higher level before they can join a… Continue reading OPEC’s Struggles In Limiting Output
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The United States’ Strategic Petroleum Reserve
July 24, 2017
Bloomberg – U.S. Owns 700 Million Barrels of Oil. Trump Wants to Sell It The weather was hot and humid on July 21, 1977, the day the U.S. government began stockpiling oil. It started small. Just 412,000 barrels of Saudi Arabian light crude stashed in a Southeast Texas salt cavern. In the wake of the… Continue reading The United States’ Strategic Petroleum Reserve
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Cheap Money’s Role In Shale Oil
July 24, 2017
The Financial Times – The argument to be a buyer of the Saudi Aramco IPO John Dizard looks at the role of US shale producers in the global oil and gas sector I believe the US exploration and production industry for oil and gas has developed great technology, but it has required continuous transfusions of… Continue reading Cheap Money’s Role In Shale Oil
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Shadow Rates
July 24, 2017
The Wall Street Journal – How Markets Could Come Out of the Shadows As with the Fed in 2013, an improving economy is putting the ECB on the path to eventually ending its bond purchases and, if nothing goes badly awry, tightening. Throughout that process, even as its benchmark interest rate remains stuck at zero,… Continue reading Shadow Rates