U.S. economy shows 3.2% third quarter growth ahead of Fed meeting on interest rates
The second revision to U.S. GDP growth in the third quarter was the charm. The U.S. economy grew at a 3.2% annualized rate in the the three months that ended in September, according to the Commerce Department. That was ahead of the 2.9% growth reported in the initial estimate and above the 3% growth rate that economists surveyed by Bloomberg were expecting.
No surprises: Fed chair Yellen tells Congress that interest rate increase is pending
Janet Yellen’s testimony in front of Congress’s Joint Economic Committee this morning was dull, dull, dull. Which is a good thing. The last thing financial markets need right now (or ever, come to think of it) is wild speculation from the chair of the Federal Reserve. The Fed will raise interest rates relatively soon, she said
Global bond prices continue to tumble–and the market is getting more, not less, dangerous
The rout in global bonds continued today. The yield on the 10-year U.S. Treasury climbed 7 basis points to 2.22%. That’s the highest level since January. Yields on the 10-year German Bund rose to 0.32% in the longest losing streak for these benchmark bonds since May. Yields on Italian and Portuguese debt climbed to the highest levels since July 2015 and June 2016, respectively. The worst damage continued to be suffered in emerging market bonds.
Global bond markets decide Trump means more government spending, rising inflation, and a pick up in the speed on Federal Reserve interest rate increases.
Global bond markets fell to the tune of a more than $1 trillion loss this week after Donald Trump’s win in the U.S. presidential election. The market value of the Bank of America’s Global Broad Market Index, which tracks 24,000 bonds around the world, fell by $1.14 trillion this week. The only other week that witnessed a drop of $1 trillion or more was during the June 2013 “Taper Tantrum” when bonds sold off after then Fed chairman Ben Bernanke threatened to reduce bond purchases.
Economy adds 161,000 jobs in October, September total revised upwards to 191,000; Fed on course for December interest rate increase
The U.S. economy added 161,000 jobs in October and the Bureau of Labor Statistics revised the September job total upwards to 191,000. The original September report put the month’s job gains at 156,000. Economists surveyed by Bloomberg were expecting the economy to add 173,000 jobs in October.
Fed holds interest rates steady but says case for a December increase continues to strengthen
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: Brexit is making U.K consumers poorer already
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Third quarter GDP climbs enough to support December interest rate move by the Federal Reserve
U.S. GDP grew at a 2.9% annualized rate in the third quarter, the Department of Commerce announced today. Economists surveyed by Bloomberg were looking for 2.6% growth. This follows on 1.4% growth in the second quarter.
For the moment, the world’s bond markets have decided the era of cheap central bank money is over–but we’ve been here before
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Advance warning: Tomorrow morning is going to be busy
Earnings reports from Amazon (AMZN) and Alphabet (GOOG) after the close today. Earnings from ExxonMobil(XOM) before the open tomorrow. The advance report on third quarter U.S. GDP at 8:30 a.m. New York time tomorrow. Yep, the financial markets in New York are going to have a lot to digest when they open on Friday morning.
Itau Unibanco gains on central bank rate cut–but gains in Brazilian stocks muted by arrest of another big fish politico
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