Bloomberg – BOJ Draws Line in Sand But Faces Battle to Cap Bond Yields While the Bank of Japan faced down the market on Friday with its offer to buy an unlimited amount of bonds, the battle over yield control may have only just begun. The swift action allowed the BOJ to quickly assert authority over the 10-year… Continue reading The BOJ & PBOC Take On The Markets
The Financial Times – US crude exports forecast to exceed most Opec members by 2020 The US will quadruple its crude oil exports to volumes greater than those of most Opec members within three years, an influential consultant has forecast, as Texas producers seek customers for seemingly unstoppable supplies. By 2020, exports of US crude… Continue reading U.S. Forecast To Become Top 10 Global Crude Exporter By 2020
The Wall Street Journal – Oil Up? Oil Down? Blame the Algorithms When energy analysts and investors couldn’t figure out oil markets this year, they blamed one group: algorithmic traders. On various days over the first six months of 2017, even amid signs of tightening supply, oil prices fell sharply, eventually sinking into bear market territory. Such… Continue reading Algos Dominate The Futures Markets
OPEN Webcast – Previewing Q2 2017 Corporate Earnings In this webinar, Jim Bianco previews Q2 2017 corporate earnings.
Wall Street Journal – Wall Street Cash Pumps Up Oil Production Even as Prices Sag One analyst cites ‘insufficient discrimination on the part of sources of capital’ Companies have more capital to keep drilling thanks to $57 billion Wall Street has injected into the sector over the last 18 months. Money has come from investors in… Continue reading U.S. Shale Producers Can’t Find the Brakes
OPEN Webcast – Large Speculator versus Leverage Trader In our latest webinar, Jim Bianco looks at large speculators versus leverage traders in stocks, currencies and interest rate futures.
The New York Times – Health Care Debate: A Really Big Story, Except When It Isn’t Coverage of health care by a subset of regional news sources mirrored that by the national media. Health care coverage increased after the Senate released its bill. But by early July, coverage was competing with that of North Korea’s missile… Continue reading Failed Senate Healthcare Bill Would Not Go Unnoticed by Markets
FT Alphaville – There be zombies among us The BIS dubs a zombie company any firm which is more than 10 years old, listed and has a ratio of EBIT to interest expenses below one. This means Uber, which is now eight years old, only has two years and a public listing ahead of it, before… Continue reading Investors Have Yet to Fear the ‘Walkers’ Among Us
The Wall Street Journal – Markets Not Ready for Jump in Jobs The U.S. economy added 222,000 jobs last month, the Labor Department reported Friday, and the job counts for the prior two months were revised higher. The unemployment rate edged up to 4.4% from 4.3%, but for a good reason: More people were looking for work,… Continue reading A Deeper Dive Into The Jobs Numbers
The Wall Street Journal – Fed Report Cautions on Hazards of Monetary Policy Rules “Monetary policy rules do not take account of broader risk considerations,” such as risks to financial stability, the report said. In addition, rules don’t provide enough flexibility for asymmetric risks, such as less flexibility to respond to an economic shock when the… Continue reading The Fed Cannot Conduct Policy Based On Strict Rules
Bloomberg Business – Cross-Asset Quants Are Facing the Worst Losses in a Decade CTA funds plunge 5.1 percent for worst period since 2007 Also punished: investors who make a living operating in several asset classes at once. They’ve been stung by the concerted selloff that lifted 10-year Treasury yields by 25 basis points and sent tech stocks to… Continue reading The Latest Drop In Tech Stocks & Rise In Yields Is Hurting Quants