The first half of October and particularly the last five days and today have been brutal for investors who had bought into the notion of the low-volatility “Goldilocks” economy and markets. They have experienced large losses on their highly correlated positions in different asset classes. Indeed,…
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October’s Wild Ride Isn’t Over Yet
The manufacturing sector experienced its fourth consecutive increase in expansion levels during September, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for September was 58.1 (a PMI reading above 50.0 indicates that manufacturing i…
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Rising stocks – PMI
Back during the Great Financial Crisis, I’d get a panicked call from my grandma at least once a month, asking if the stock market crash would ever end and whether she should take her money out to bury in the proverbial backyard. In contrast, her calls over the last five years have filled with…
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Panic! On Wall Street: When Will The Bleeding Stop?
The U.S. said China has shown “some renewed willingness” to let the yuan strengthen while reiterating the currency “remains significantly undervalued.” In a twice-yearly report to Congress on foreign exchange, the Treasury Department said changes to China’s currency policy remain incomplete and t…
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U.S. Says China Shows Some ‘Willingness’ to Let Yuan Rise
Curious why Netflix is being obliterated after hours, plummeting to 5 month lows, down some $100, or 24% after hours after reporting earnings? The answer is highlighted in the Q3 investor letter, and specifically the red highlighted number, which is NFLX’ guidance for Q4 EPS: The problem is that the…
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Netflix Obliterated After Guiding To Half Expected Q4 EPS, Streaming Adds Hit Brick Wall: Stock Down $100
The Bank of England should ignore the recent dip in inflation when setting interest rate policy, according to monetary policy committee (mpc) member Martin Weale, who indicated that he will continue to vote for an immediate hike in rates. Weale said the Bank should “look through” the current low …
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Bank of England should ignore inflation dip, says MPC member
Sinking global stock markets are no worry to Federal Reserve Bank of Dallas President Richard Fisher right now. “A market correction doesn’t mean the economy is in trouble,” Mr. Fisher said in an interview on Fox Business Network Wednesday. “Without mentioning any companies in particular, prices …
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Stock Market Blowout Isn’t Keeping Dallas Fed Leader Fisher Up At Night
There’s more bad news on the global economy as Wal-Mart cut its FY2015 sales forecast. They now see sales growth 2-3% compared to 3-5% they previously forecast, according to CFO Charles Holley at analyst day. They also see profits ‘somewhat slower’ over the next 3 years.
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Wal-Mart cuts its sales forecast
Wall Street had for the most part shrugged off a recent slide in global stock markets, viewing the declines as an adjustment that was bound to take place after so many years of uninterrupted gains. That complacent view was upended on Wednesday. Waves of nervous selling rocked the stock market …
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Stocks Tumble on Global Growth Worries
Federal Reserve Chair Janet Yellen voiced confidence in the durability of the U.S. economic expansion in the face of slowing global growth and turbulent financial markets at a closed-door meeting in Washington last weekend, according to two people familiar with her comments. The people, who asked…
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Yellen Said to Voice Confidence in U.S. Economic Expansion
Despite significant upset in financial markets, Federal Reserve officials believe economic growth is progressing at a “modest to moderate” pace. The Fed’s “Beige Book” of economic conditions indicate officials there believe growth to be a modest to moderate pace, with consumer spending improving …
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Fed’s Beige Book sees steady growth, spending up, job conditions improving
Reports from the twelve Federal Reserve Districts generally described modest to moderate economic growth at a pace similar to that noted in the previous Beige Book. Moderate growth was reported by the Cleveland, Chicago, St. Louis, Minneapolis, Dallas, and San Francisco Districts, while modest…
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Beige Book – October 15, 2014
Italy’s government is expected to clear a E30 billion budget plan Wednesday that includes a mix of tax cuts and public savings in an attempt to support growth in Europe’s third largest economy and reassure the European Commission on the solidity of its public finances, government officials and…
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Italy Preps For Budget Showdown With EU Commission
Investors are blaming an unprecedented lack of liquidity for Wednesday’s gut-wrenching stock market open, which saw the S&P 500 fall as much as 2.2 percent from Tuesday’s close, sent the VIX screaming to 28 and led to outsized moves in major stocks like Disney. According to Eric Hunsader of Nanex…
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Liquidity nightmare blamed for crazy market moves
Could I say what a great privilege and pleasure it is to give the 2014 JSG Wilson Lecture. Professor Wilson, of course, wrote a number of key texts on money and banking. Alas it is only in the aftermath of the banking crisis that we have all learned of the importance of studying money, money mar…
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Weale: What to do when we don’t know: policy-making when spare capacity is uncertain
Ever since the oil shock of the early 1970s, central bankers have fretted that rising energy prices spelled recession. Now they’re discovering cheaper energy can be a headache too, especially when warding off deflation is the economic challenge du jour. Historically, the 27 percent drop in B…
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Oil Slide Puts Central Bankers Over Deflationary Barrel
The European Union could save up to $80 billion in energy imports if oil prices remain low, providing some relief to households and companies in a region that has been laid low for the last five years. The price of oil LCOc1 has dropped over a quarter since the summer to below $85 per barrel, a l…
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Europe could save up to $80 billion in energy imports as prices plunge
Italy is no longer in a recession, thanks to its black market. Because the European Union changed the way it calculates GDP to include illegal revenue from things like underground alcohol sales, drugs, and prostitution, Italy found out Wednesday that its 0.1% GDP decline in the first quarter of …
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Drugs And Prostitutes Help Bring Italy Out Of Recession
Italy is no longer in a recession, thanks to its black market. Because the European Union changed the way it calculates GDP to include illegal revenue from things like underground alcohol sales, drugs, and prostitution, Italy found out Wednesday that its 0.1% GDP decline in the first quarter of …
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Drugs And Prostitutes Help Bring Italy Out Of Recession
Global stocks, bond yields and commodity prices slumped on Wednesday as investor fears over the state of the global economy intensified after U.S. producer prices fell for the first time in more than a year. U.S. equity futures were down 1.2 percent – with big blocks of shares being sold – and th…
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Markets slammed by economic fears after U.S. data
