Economics
ECB Announcement Expected to Raise Equities, Prevent Deflation
European stocks advanced for three days in a row as of Monday, as more investors expect the European Central Bank to announce a quantitative easing program that will expand the euro base and stop Eurozone deflation.The Stoxx Europe 50 index...
Should China Expect Confrontational Policies from Washington?
In 2013, the Sino-US relations ended with concern over strategic mistrust. In 2014, bilateral relations were characterized by a sense of optimism. While bilateral trust may endure through the Obama era, challenges will ensue thereafter.The renewed sense of strategic trust...
Central Bank Meetings Dominate This Week’s Economic Events
This will be an eventful week. There are three major central bank meetings: BOJ, BOC and ECB. The ECB is widely expected to announce a wider bond-buying program that will include sovereign bonds. January 25 Greece holds national elections in...
U.S. and Europe CPI’s Falling, but Germany Dismisses Deflationary Risks
In an interview with CNBC late last week, Germany Finance Minister Steffen Kampeter dismissed growing concerns at investment banks, think tanks, government agencies, and central banks that deflation has become inevitable in Europe."This is not what economists and textbooks describe...
Has the Market Expectation Pendulum Swung as Far as it Can?
The investment climate has become more treacherous. Weak wage growth and disinflationary headwinds are making market participants question likelihood of a Fed rate hike around mid-year. The Swiss National Bank's jettisoning its prior strategy has thrown many investors off balance...
Don’t Write Off Hong Kong’s Umbrella Movement Just Yet
The Hong Kong Umbrella Movement, the city’s first significant and sustained extra-legal protest, provided a number of valuable lessons for the future. The Hong Kong Umbrella Movement, the city’s first significant and sustained extra-legal protest, provided a number of valuable...
After the SNB Decision, the Reverberations Continue
Saying the US dollar had a good week even though it lost 18.5% against the Swiss franc may be a bit like the old joke about asking Mrs. Lincoln, "besides that, how was the play?"The Swiss National Central Bank's unexpected...
Swiss Currency Cap Abandoned on Fears of a Euro Collapse
The Central Bank of Switzerland has abandoned a cap on the Swiss franc, causing it to soar in value against the euro.The Swiss franc rose 17.5% against the euro and 15.7% against the US dollar on Thursday after the bank...
Swiss and Indian Central Bank Surprises Rile Financial Markets
Seemingly, out of the blue, the Swiss National Bank abandoned its cap in the Swiss franc (euro floor) and moved deeper into negative interest rates. This has seen the Swiss franc rocket higher against the euro and dollar. It sent...
Retail Sales Plummet as Jobless Claims Unexpectedly Rise
Retail sales fell 0.9% as jobless claims rose to a four-month high.The Department of Commerce reported Wednesday that retail sales fell 0.9% month-over-month on a seasonally adjusted basis in December, representing a 3.2% year-over-year increase from December 2013, unadjusted for...
Are EMU Debtors Getting the Upper Hand Over Creditors?
The key axis in Europe is between creditors and debtors. Each pushes their own interests. The regime of austerity in Europe indicates that the creditors have had the upper hand. However, two developments in the last two days suggest the...
Does Maximizing Shareholder Wealth Accomplish Anything Else?
Modern capitalism has a massive structural flaw in one of the cornerstones of its existence. The corporations which form the predominant business structure and which are the main instrument for dividing wealth have been operating on a false premise. Modern...
U.S. Earnings Season Begins; Sweden, China and Japan also in the Economic News
Brent oil is off another 3% today, taking its decline since the end of last year to 20%. This is overshadowing other macro-economic forces. With the Federal Reserve among the least likely central banks to respond, the dollar is firm,...
Why American Workers are Unlikely to obtain a Raise in 2015
Although the end of 2014 was brimming with some positive articles about the improving state of the United States economy despite Obamacare, the Dept. of the Interior, and the EPA holding back millions of Americans from improving their lives, some...
The Week in Review: Volatility High, Prices Low
U.S. equities saw a fall and recovery amidst greater uncertainty about falling prices in Europe and in the U.S.The S&P 500 saw three straight days of steep declines before reviving at the end of this week, leaving the index down...
