US inflation was a blip in the grand scheme
It really was a blip. Continue reading US inflation was a blip in the grand scheme
Category: Economy
Bidenomics- hardly game changing
“Yes, at the margin, there’ll be some more chips made here. Is it going to be, are we going to get 30%, 40%, 50% of global production? No, nowhere near that. Is the ED revolution going to continue? I don’t think the $7,500 rebate is going to drive that. What’s going to drive that is ultimately market economics and innovation. You might coax another mile or two per gallon out of internal combustion engines, but if there’s going to be a tech breakthrough, it’s going to be across the battery platforms and the mileage and the range and the pricing … Continue reading Bidenomics- hardly game changing
Morgan Stanley – preventative care vs sick care – growth impacts
Our Head of Europe Sustainability Research discusses how rising longevity is revolutionizing our fundamental approach from reactive to proactive treatment.—– Transcript —–Welcome to Thoughts on the Market. I’m Mike Canfield, Morgan Stanley’s European Head of Sustainability Research. Along with my colleagues, we’re bringing you a variety of perspectives; and today we’re focusing on a topic that affects everyone – how much does poor health cost us? And how are ageing populations and longer life expectancy driving a fundamental shift in healthcare? It’s Thursday, August the 8th, at 4pm in London. As populations age across the developed world, health systems need to help … Continue reading Morgan Stanley – preventative care vs sick care – growth impacts
Black Swan hedging
Our markets team has put together a list of what bankers say you should — and shouldn’t — do when markets crash. One thing traders did yesterday was rush to insure their portfolios against an extreme market crash. In an echo of the chaotic period at the start of the pandemic, a defensive strategy often known as Black-Swan hedging was suddenly in vogue, with the Cambria Tail Risk ETF, an actively managed exchange-traded tail-risk fund, jumping 4.5% for its best day since March 2020. https://www.bloomberg.com/news/newsletters/2024-08-06/five-things-you-need-to-know-to-start-your-day-americas?cmpid=BBD080624_MKT&utm_medium=email&utm_source=newsletter&utm_term=240806&utm_campaign=markets Continue reading Black Swan hedging
Caterpillar Profit Beats Estimates, Boosted by Stronger Pricing
Caterpillar Inc. reported second-quarter earnings that beat analyst expectations, helped by stronger pricing that helped offset a drop in sales. Caterpillar, one of the world’s biggest producers of heavy machinery, is seen as a bellwether for industrial activity as a key supplier to industries from construction and mining to energy and transportation. Caterpillar Profit Beats Estimates, Boosted by Stronger Pricing http://www.bloomberg.com/news/articles/2024-08-06/caterpillar-profit-beats-estimates-boosted-by-stronger-pricing Continue reading Caterpillar Profit Beats Estimates, Boosted by Stronger Pricing
Five Things You Need to Know to Start Your Day: Americas (Bloomberg)
By Morwenna Coniam August 5, 2024 at 6:37 AM EDT Good morning. Global stocks are falling with US futures in the red as a tech-led selloff accelerates. Meanwhile, concerns about the US economy are fueling speculation as to when the Federal Reserve will cut interest rates. And Mars is considering making a major deal in the snack industry. Here’s what traders are talking about. — Morwenna Coniam. Want to receive this newsletter in Spanish? Sign up to get the Five Things: Spanish Edition newsletter. Stocks slump The global stock-market decline picked up speed on Monday, with losses cascading across tech shares and the … Continue reading Five Things You Need to Know to Start Your Day: Americas (Bloomberg)
Odd Lots: The Hidden Forces Driving the Big Market Sell-Off Odd Lots The Hidden Forces Driving the Big Market Sell-Off https://podcasts.apple.com/ca/podcast/odd-lots/id1056200096?i=1000664111117 41:28 The Nasdaq is now in correction territory and the S&P 500 is down more than 2% so far this month. Analysts are blaming any number of things for the selloff, including a slowdown in the economy, the Federal Reserve being behind the curve on rate cuts, hedge funds rotating out of positions, and waning enthusiasm for AI. But Matt King, the former Citigroup strategist who’s now founded his own research shop called Satori Insights, argues there’s something else … Continue reading
Today’s Points:
The Fed is still on course to cut rates in September — and trying not to seem overeager. Animal spirits return: lowest 10-year yield in six months, biggest gain for the Nasdaq 100 in 18 months. BUT: The Bank of Japan’s hawkish turn has sunk the carry trade. Critical question is whether it’s allowed to kill the corporate zombies. Almost unnoticed, the Middle East situation is its most dangerous in a year — an oil spike would be a game changer. AND: More zombies. Continue reading Today’s Points:
So, shorting bonds is OK for the central bank because their prices are too high
China’s recent actions contradict President Xi Jinping’s vow to let markets play a decisive role in resource allocation. The People’s Bank of China has adopted “yield curve control” and is borrowing government bonds to drive up long-term yields. However, short selling in the stock market is restricted. These actions risk discouraging investor participation. [27 Jul 2024] Bloomberg Among the steps taken recently by China’s central bank is a new initiative to borrow government bonds from banks—the biggest holders of those securities—and sell them in the market in order to avoid drive up longer-term yields. In other words, shorting—just what hedge … Continue reading So, shorting bonds is OK for the central bank because their prices are too high
Ben Casselman NYT
What I Cover: “particularly interested in the long-term trends — demographic, geographic, technological, political — that shape the way we live and work.” I’m a reporter covering the U.S. economy for The New York Times. I’m an unapologetic econ nerd. I love reading research papers, debating the effect of policies and diving deep into economic data to find stories. But what I really care about are people — economic models matter only if they teach us something about the real world. My Background I have been reporting on the economy in one way or another for nearly 20 years. I … Continue reading Ben Casselman NYT
