Asian stocks fell broadly on Wednesday while the U.S. dollar held firm after a slump on Wall Street and tensions over Ukraine instilled a mood of risk aversion across markets. Geopolitical concerns overshadowed upbeat U.S. economic data which included a spike in service-sector activity to a nine-…
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Asia shares worn out by Wall St, oil near 9-mth low
Federal regulators on Tuesday pressed the nation’s biggest banks to make significant changes to resolution plans — or “living wills,” as they are known — that would allow them to enter bankruptcy without sparking another financial crisis should they fail. The Federal Reserve and the Federal Depos…
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Regulators get tough on big banks’ living wills
The small companies that dominate China’s private market for high-yield bonds face rising default risks as their debt obligations soar to a record and economic growth slows to the lowest in more than two decades. Privately issued notes totaling 6.2 billion yuan ($1 billion) come due next quarter,…
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China Default Storm Seen as Record Private Bonds Mature
Bank of America Merrill Lynch remains USD bulls seeing the USD Index on the verge of completing a a 10m Double Bottom, which would target 83.97 “While the potential for a near term US $ pullback remains, we would like to buy that dip, particularly against GBP,” BofA says. Focusing on GBP/U…
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USD Bulls Be Patient Against GBP, Gold; Sell AUD/USD – BofA Merrill
In mid-2012, yields on 10-year Italian and Spanish government bonds were more than 4 percentage points higher than yields on 10-year German and U.S. government bonds. Since then, spreads have narrowed to the point where the yields on Italian and Spanish bonds nearly match those on U.S. securities….
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Comparing International Bond Yields
The dollar held near an 11-month high against a basket of major currencies early on Wednesday, having got a second wind after upbeat U.S. data bolstered expectations of solid economic growth in the third quarter. The dollar index .DXY was last at 81.537, not far from the overnight peak of 81.626….
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Dollar regains momentum on upbeat data, euro skids
The Securities and Exchange Commission today charged four promoters with ties to the Pacific Northwest for manipulating the securities of several microcap companies, including marijuana-related stocks that the agency has warned investors about in recent weeks. The SEC alleges that the four promot…
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SEC Charges Four Promoters with Manipulating Marijuana-Related Stocks and Other Microcap Companies
Dairy prices have slumped to their lowest level in two years, taking some of the shine off New Zealand’s “rock star” economy. Prices were down 8.4 per cent at the GlobalDairyTrade auction overnight, only a week after Fonterra cut its milk price farmer payout forecast by $1 a kilogram of …
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New Zealand dairy prices drop to two-year low
Back on July 14th we warned of possible exhaustion on the long-side of NZDUSD as the pair approached the 2011 highs around 8840. The subsequent turnover went well beyond all our support objectives and the kiwi now finds itself approaching key support to open August trade. The 8440/50 region is…
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NZDUSD at Key Support and August Range Low- Exhaustion or Break?
Fresh evidence emerged yesterday that Scotland’s major financial institutions might flee the country if the Scottish vote for independence in September. Standard Life, the insurance company that employs 5,000 people in Scotland, again hinted it would consider leaving, the Financial Times reported. …
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More Evidence That Scotland Will Face Financial Crisis If The Scots Vote For Independence
Geopolitical risk reared its ugly head once again, sending stocks down, down, down Tuesday. The Dow and S&P 500 are back at the levels they last saw in May. The Dow finished the day down 140 points (0.8%) while the S&P 500 ended down almost 1%. 1) What’s causing this panic? The main trigger fo…
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Market jitters return. Dow drops 140 points
Britain’s manufacturing sector has been keeping its momentum in the two most recent quarters. The government’s positive rhetoric on the support of the sector as well as strong business confidence have been giving a healthy boost to both optimism and output in the sector. In June, economists expec…
Tiptoeing on a tightrope past insider trading laws may be deft and clever, but it doesn’t make it right. For months, William A. Ackman, the hedge fund manager, has nonchalantly said, repeatedly, that his purchase of Allergan shares worth over $1 billion ahead of a takeover offer from Valeant Phar…
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Ackman and Valeant’s Bid for Botox Maker May Be Too Clever to Be Legal
Guess what folks, the European Central Bank’s still unused bond-buying program has been a huge success in bringing down the borrowing costs within the euro-zone, particularly for weaker economies such as for Spain and Italy. You might say, “well, obviously!” After all, when the ECB created its…
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Economists Prove The Success of ECB’s OMT
Where did this sudden spate of volatility come from? Journalists are pointing to Argentina and traders are citing various negative divergences, but I don’t believe that either of those explanations are legitimate, at least not in terms of the origin. Today I’ll explain the machinations of how the…
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The Rube Goldberg Machine
U.S. stocks fell, extending earlier losses, as energy shares declined and concern increased over escalating tensions in Ukraine. Target Corp. lost 3.9 percent after second-quarter profit trailed its forecast as U.S. sales remained weak and its Canadian operations continued to struggle. Motorola S…
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U.S. Stocks Fall on Ukraine Concern as Energy Shares Drop
Yesterday, the S&P and Nasdaq bounced hard off the pre-payrolls level from Aug 1st. From the moment US cash equity markets closed yesterday, stocks have been dropping back. But now, thanks to this: •SIKORSKI: RUSSIAN UNITS POISED TO PRESSURE OR INVADE UKRAINE •SIKORSKI: RUSSIAN INCURSION WOULD B…
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Stocks Plunge On Russia Invasion Threat – Give Up All Post-Payrolls Gains
David Kostin and the U.S. equities team at Goldman Sachs are out with a big call on stocks and bonds in the coming years: “dramatic divergence.” …
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Goldman: A ‘Dramatic Divergence’ Is Coming To Stocks And Bonds
The U.S. dollar rose to a four-month high against the Japanese yen last week leading investors to question whether a sustainable uptrend is at hand or if this is another false dawn. Charts analysis suggests the latter. The down-sloping triangle pattern in the dollar-yen suggests a high probabi…
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Is the dollar-yen uptrend a false dawn?
We live in a brave new world. Never before have the major central banks so strongly advocated higher wages. The Yellen Federal Reserve has shifted the focus from the unemployment rate to broader measures, including wages. The anemic wage growth is one of signs of the “substantial” slack in …
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Wages and Productivity
