BIS warns again about China’s serious and growing debt problem
Today’s warning from the Bank for International Settlements was the most dire yet. What’s called the credit-t0-GDP gap climbed to 30.1%. This measure, which compares the current credit-to-GDP ratio and its long term trend is now the highest for China in the data series that stretches back to 1995. The Bank for International Settlements says that any gap above 10% signals elevated strains in a country’s banking system
Saturday Night Quarterback says, For the week ahead expect…
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...Trick or trend: And now it’s Intel raising guidance
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...Why next week’s Bank of Japan meeting is roiling the markets
Next week it’s actually the Bank of Japan meeting rather than the Federal Reserve’s that has the most power to move financial markets in the short run. Partly that’s because the Federal Reserve’s isn’t likely to do anything at its September 21 meeting. But partly its because there is real uncertainty about what the Bank of Japan might do at its September 21 meeting. The worry is that the bank will decide to cut back on purchases of long-term bonds and at the same time reduce short-term interest rates further
Retail sales weak in August except for health care retailers and Amazon
Retail sales in August fell 0.3% from July, the Census Bureau announced today. Analysts and economists were expecting a smaller drop of 0.1%. On a year over year comparison August sales rose 1.9%. Retail sales for June through August 2016 climbed 2.4% from the June-August period in 2015. Sales fell in eight out of 13 retail categories
Good Census news reveals tale of two economies
In 2015, median household income rose 5.2% when adjusted for inflation from 2014. But all the income gains, the Census data show, came in cities and suburbs and none flowed to rural areas.
Easy to forget but Q3 is almost over–how are earnings doing?
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...Markets stage another big move–downwards this time–on today’s bad news on oil surplus
Volatility is back. Although there’s been a “reason” for each move of the past three sessions, I think what we’re seeing is a return of nervousness on a realization that bonds and stocks are expensive right now and therefore risky since traders and investors really don’t know which way news is going to break on key factors such as economic growth, central bank stimulus, and Federal Reserve interest rates.
Fears of Volkswagen tie up with Navistar overstated in case of Cummins
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...Financial markets stabilize as a Fed dove on interest rates stays dovish
Federal Reserve governor Lael Brainard, one of the most vocal opponents of raising interest rates soon, remained dovish in her remarks today. And that allowed financial markets to stabilize after last Friday’s sell off