Treasury Sell-Off is a China Syndrome

Just looking at the numbers, it appears as if foreign investors are broadly dumping U.S. Treasuries at an unprecedented rate. On the surface, this is an alarming development, considering that these investors own almost half [...]

February 13th, 2017|Breaking News|

Stock Darlings Rebuked as Stimulus Gets Costly for Japan, Europe

Japan and Europe, former darlings of stock investors, are now bottom of the heap. The Topix index lost 13 percent from the start of the year through last week and foreign investors have yanked $10.7 billion out of Japanese equities. The world’s worst-performing developed markets are found in Tokyo and across Europe, where a regional benchmark gauge lost 6.8 percent and strategists expect shares to tread water for the rest of 2016. For Tatsushi Maeno, head of Japanese equities at Pinebridge Investments Japan Co., it’s no coincidence that those are the two regions where central banks have established negative interest rates.

March 22nd, 2016|Breaking News|

ECB January meeting minutes indicate additional easing of policy in March

The ECB's January policy meeting minutes indicate that the governing council will take measures to further loosen monetary policy in March. The council members, on back of the increased global market turmoil, broadly agreed that there are downside threats to inflation and economic growth and are already materializing to a certain extent. The council members also expressed their worries regarding the possible downside threats to inflation from second-round effects.

February 19th, 2016|Breaking News|

China’s yuan eases; PBOC data suggests major intervention in January

China's yuan inched down against the dollar on Friday after the central bank fixed a slightly softer midpoint, but looked set for a solid weekly gain. Data published by the Chinese central bank late on Thursday indicated its foreign exchange assets, a barometer of currency flows resulted from central bank intervention in the foreign exchange market, decreased by 644.5 billion yuan ($99 billion) in January, its second biggest monthly fall.

February 19th, 2016|Breaking News|

Draghi Disappoints Traders, Failing To Deliver Any QE Hints

Those who waited the European Central Bank President to shed some light on the possibility of more monetary easing in the Euro zone, were left disappointed. Analysts and economist were anticipating some major moves in the Euro after Mario Draghi's speech at the Bank of England open forum presentation, as expectations were raised in October when Draghi suggested a major policy move.

November 13th, 2015|Breaking News|

GE posts earnings beat; revenue misses

General Electric on Friday delivered quarterly earnings that surpassed analysts' expectations, as its businesses producing jet engines and power turbines offset declines in its oil and gas segment, but revenue fell short of estimates.

October 16th, 2015|Breaking News|

Draghi: ECB to keep stimulus ‘as long as needed’

European Central Bank President Mario Draghi said Thursday the ECB's vast stimulus efforts will remain in place "as long as needed" until officials are confident that they will meet their inflation objective on a sustained basis, and played down concerns that the bank's policies are widening the gap between rich and poor.

May 15th, 2015|Breaking News|

European Stocks Drop as Manufacturing, Services Miss Estimates

The Stoxx Europe 600 Index lost 0.4 percent to 407.18 at the close of trading, having earlier tumbled as much as 1 percent and gained 0.4 percent. A report showed euro-area manufacturing and services missed forecasts, signaling it may take longer for European Central Bank President Mario Draghi’s quantitative-easing plan to revive the economy.

May 8th, 2015|Breaking News|

Housing Starts Fall as U.S. Single-Family Projects Decline

Builders broke ground on fewer U.S. residential construction projects in January as demand for single-family homes cooled from an almost seven-year high, signaling the rebound in housing remains uneven. Housing starts declined 2 percent to a 1.07 million annual rate, following the prior month’s 1.09 million pace, a Commerce Department report showed Wednesday in Washington.

February 20th, 2015|Breaking News|

U.S. Retail Sales Down Sharply, Likely Cuts to Growth Forecasts Ahead

The optimism surrounding the outlook for U.S. consumers was taken down a notch as retail sales slumped in December by the most in almost a year, prompting some economists to lower spending and growth forecasts. The 0.9 percent decline in purchases followed a 0.4 percent advance in November that was smaller than previously estimated, Commerce Department figures showed today in Washington. Last month’s decrease extended beyond any single group as receipts fell in nine of 13 major retail categories.

January 16th, 2015|Breaking News|

Greek Contagion Concerns Attract Bears to Spain, Italy

Traders are buying up protection should Greece’s potential exit from the euro trigger a domino drop in Spanish and Italian stocks. Greek Prime Minister Antonis Samaras has said a victory for the Syriza opposition party in the Jan. 25 election would lead to default and an exit from the euro. Spain and Italy (FTSEMIB) are also facing the rise of anti-austerity sentiment. Things will get even worse should European Central Bank President Mario Draghi fail to devise a stimulus plan that satisfies investors, according to Max Breier of BMO Capital Markets Corp.

January 12th, 2015|Breaking News|

India not planning further curbs on gold imports – trade secretary

India is not planning to impose any further curbs on gold imports as the current account deficit is under control, Trade Secretary Rajeev Kher said on Wednesday. The South Asian country has imported 7 tonnes of gold so far in January, while 39 tonnes of gold was imported in December, Kher said after a meeting with industry representatives. India's gold imports in November were 151.58 tonnes, according to the government data.

January 12th, 2015|Breaking News|

Japan’s Recession Deepens as Election Looms for Abe: Economy

Japan’s recession was deeper than initially estimated as company investment unexpectedly shrank, a blow to Prime Minister Shinzo Abe as he campaigns for re-election on his economic credentials. The economy contracted an annualized 1.9 percent in the July to September period from the previous quarter, weaker than the 1.6 percent drop reported in preliminary data. The result was also below every forecast in a Bloomberg News survey that showed a median 0.5 percent decrease.

December 10th, 2014|Breaking News|

China’s Stocks Sink Most Since 2009 as Turnover Jumps to Record

Chinese stocks tumbled the most since 2009 amid volatile trading that spurred the benchmark index’s biggest swings in five years and sent turnover to a record. The Shanghai Composite Index (SHCOMP) slid 5.4 percent to 2,856.27 at the close, the most since August 2009, after earlier gaining as much as 2.4 percent. The nation’s four biggest lenders including Industrial & Commercial Bank of China Ltd. (601398) plunged more than 9 percent, while PetroChina Co., the biggest stock, slumped 8 percent. Lower-rated bonds fell and the yuan weakened to four-month lows after policy makers said riskier bonds can no longer be used as collateral for some short-term loans.

December 10th, 2014|Breaking News|

Draghi Says ECB Measures May Entail Buying Government Bonds

European Central Bank President Mario Draghi explicitly cited government-bond buying as a policy tool officials could use to stimulate the economy if the outlook worsens. “Other unconventional measures might entail the purchase of a variety of assets, one of which is sovereign bonds,” Draghi said in Brussels today during quarterly testimony to lawmakers at the European Parliament.

November 17th, 2014|Breaking News|

The Scariest Number Revealed Today: $1.114 Trillion In Eurozone Bad Debt

As we previously reported, the ECB's latest stress test was once again patently flawed from the start. Why? Because as we noted earlier, in its most draconian, "adverse" scenario, the ECB simply refused to contemplate the possibility of deflation. And here's why. Buried deep in the report, on page 75 of 178, is the following revelation which contains in it the scariest number presented to the public today.

October 28th, 2014|Breaking News|