"If one were concerned about the historically low 10-year Treasury and commercial real estate capitalization rates, perhaps because of potential financial stability concerns, the balance sheet composition could be adjusted to steepen the yield curve." - Boston Fed President Eric Rosengren
The Bank of England’s inept monetary policies under Mark Carney’s governorship seem certain to expose the fragility of fiat sterling to wider public attention and skepticism. If the consequences weren’t so serious, we might thank him for unwittingly toppling the status quo. But the inevitable crisis, many times worse than that faced in 1975, cannot be embraced even by the most extreme financial masochist. This is why people in Britain and America will increasingly find solace in gold.
"We really did appreciate when you were the senator from New York and your continued involvement, to be courageous in some respects associated with Wall Street and this environment. Thank you very much" - Tim O'Neill, Global Co-Head of the Investment Management Division to Hillary Clinton.
Global auto sales just hit an all time high of 78 million units in September, however the explanation is simple: China. Of the impressive 4.4 million unit rise in global auto sales since June, China alone contributed for 84% of this global increase, or 3.7mn units.
The economy has gone suicidal. It is working against the very people who need its energy to survive. It is collapsing on its own weight, and the weight of literally incalculable levels of toxic debt. And it is going to create the greatest disaster of our time, if the warnings from the world’s most powerful bankers are any indication.
As tensions escalate in and around Syria, Russia just added another straw to the camel's back of 'proxy' wars between Washington and the rest. One Russian border patrol officer and nine North Korean fishermen were injured after Russian border patrol was forced to open fire during inspection of a North Korean fishing vessel whose crew resisted search, behaved aggressively, and tried to flee.
The United States is geographically vast and diverse, and population is spread out and unevenly distributed. This means production and innovation are both concentrated in some areas of the country, while other parts are clearly more rural. How can we account for these differences to get a more accurate view of the U.S. economic engine?
One day after a slump in Chinese trade sparked a global market selloff on concerns the world's second biggest economy had once again hit a downward inflection point, overnight China surprised once again, this time to the upside when the latest inflationary data printed hotter than expected, sending European and Asian stocks higher and pushing the yen lower after China’s producer price index rose for the first time since March 2012.
As Filipino President Rodrigo Duterte continues to distance himself from the West, moving instead toward regional powerhouse China, an official from China’s Foreign Ministry said Wednesday that the controversial leader of the Philippines will meet with the Chinese president next week in Beijing.
Remember when two weeks ago the China Beige Book warned that "It’s A Lot More Negative Than People Think" in the world's second biggest economy? Well after months of complacency about the Chinese economy and financial risks emanating from its $35 trillion financial sector, overnight the world got a rude awakening when China export figures tumbled, signalling a deeper slowdown than many anticipated just as the Fed prepares to raise interest rates.
This past Saturday October 8th, Bank of Japan Governor Haruhiko “Peter Pan” Kuroda delivered some prepared remarks on its new QQE with yield control (see here and here) at the Brookings Institute in Washington DC. The conference was attended by "luminaries" like Jeffries’ David Zervos, Princeton economist and Hillary supporter Alan Blinder, as well as many members of the press.
Global stocks are pressured this morning after a plunge in the Thai stock market and currency on concerns about the king's health and Fed hikes coupled with some more bad news out of Samsung which cut profit estimates by a third, while European stocks are suffering after Swedish telecom giant Ericsson issued a profit warning, sending its shares plunging 17%.