Global bond bubble will cripple all investors when it bursts July 28, 2013 THIS column has long highlighted the massive bubble in the global bond markets and the horrific, systemic risk it poses to the global recovery and financial system. A combination of ultra-low central bank short-term interest rates, massive amounts of quantitative easing (QE), regulatory-driven purchases of government bonds by financial institutions and Asian forex accumulation have [...]
Obama getting ready to reveal next Fed boss July 28, 2013 PRESIDENT Obama is examining the field of candidates to take over from outgoing Federal Reserve chairman Ben Bernanke, he said over the weekend, and will announce the next central bank boss in the coming months. A host of top academics and policymakers are in the running for the job, from without the Fed and outside [...]
Wall St The Week Ahead: Wall St awaits jobs, Fed and earnings news July 28, 2013 THIS week on Wall Street could be a summer blockbuster, with the roster featuring a triple bill: the Fed, jobs and earnings. Of the three, the Federal Reserve has the most potential to upset the market. The Federal Open Market Committee is expected to release a statement on Wednesday after a two-day meeting. Fed chairman [...]
We won’t find out who the next Fed chairman is until the autumn July 26, 2013 The White House has said that US president Barack Obama is not expected to name a new Federal Reserve chairman until the Autumn, lowering expectations of an imminent announcement. The news was reported by the Associated Press, citing a senior White House official speaking on the condition of anonymity. Among the leading candidates are former [...]
IMF thinks the dollar is overvalued by as much as 10 per cent July 26, 2013 The IMF has said that it considers the dollar is mildly overvalued by as much as 10 per cent more than its fundamentals suggest. The organisation said that it expects US growth of 1.7 per cent in 2013, and 2.7 per cent in 2014. Risks to the US economic outlook are said to be modestly [...]
Fed goes after Wall St giant July 25, 2013 US FEDERAL prosecutors yesterday criminally indicted a top Wall Street hedge fund over allegations that years of spectacular performance were partly based on insider trading. SAC Capital Advisors was charged by a court in New York on four counts of securities fraud and one count of wire fraud following a seven-year investigation by regulators. No [...]
Boeing drives US durable goods orders to unexpected high July 25, 2013 New orders for durable goods in the US rose for the third consecutive month in June by 4.2 per cent, higher than the 3.6 per cent growth recorded in May and far above analyst expectations of 0.5 per cent growth. But some beady eyes noted that a lot of this growth stemmed from a single [...]
Before the open – 25/07 July 25, 2013 Today will show whether growth is accelerating in the UK, with second quarter GDP out later. After a limp 0.3 per cent growth in the first quarter, economists are now forecasting that we'll see the economy grew by as much as 0.6 per cent in the second quarter. Asian equities fail to respond to #China’s [...]
US manufacturing surprises analysts with a strong surge in growth July 24, 2013 Following strong manufacturing figures from France, Germany and the eurozone, the US has surprised analysts with decisively strong growth to a four month high in July. The Markit purchasing manager's index (PMI) for manufacturing rose to 53.2 from 51.9, against analyst expectations of a flat rate of growth at 51.9. Any figure above 50 implies [...]
Capital Economics sees US economy on track for Fed to begin tapering this year July 23, 2013 Despite downward revisions to second quarter US GDP growth, economic analysis company Capital Economics thinks the Federal Reserve is still on track to begin tapering off its monthly asset purchases in September this year. While GDP growth is thought to have slowed to between one per cent and 1.5 per cent in the second quarter [...]