Retail sales again slumped according to US Census and was below expectations. Our analysis agrees that this was a weak month for retail sales - and consumers continue to not spend the money saved by lower fuel prices. Overall the rolling averages are yielding a declining growth trend.
(Reuters) - Lumber Liquidators Holdings Inc , facing U.S. government probes over claims of dangerous levels of a cancer-causing substance in its flooring products, stood by the safety of its products and said it would offer free indoor air quality testing for qualifying customers.
On common theme we've been building on lately as central banks work to monetize all net (and sometimes gross) government bond issuance in their respective jurisdictions, is that QE is destabilizing markets by sapping liquidity which in turn inhibits price discovery and creates volatility. This is on display in Japan, where 2 out of 3 dealers think the JGB market is impaired thanks to BoJ asset purchases and where many officials are beginning to get more vocal about the possibility that a lack of liquidity could have "dire consequences." Similarly, market financing via shadow banking conduits has declined by nearly half since 2008 in the US, and with dealers unwilling to hold inventory of corporate paper thanks to tougher capital requirements, the stage is set for what the Center for Financial Stability recently called "an accident." As a reminder, here's what the SEC's Daniel Gallagher had to say recently about liquidity in the US corporate bond market (via Bloomberg):
Lack of liquidity in corporate bond market is "systemic risk" not addressed by regulators, SEC Commissioner Daniel Gallagher says in public remarks.
Gallagher cites 80% decline in corporate bond inventori ...
(Reuters) - Dollar General Stores Inc forecast full-year earnings below analysts' expectations, as the company plans to open more stores ahead of a merger of its rivals Family Dollar Stores Inc and Dollar Tree Inc .
NEW YORK (Reuters) - U.S. stock index futures edged higher on Thursday, suggesting a partial rebound following recent declines, as investors looked ahead to data for indications of how soon the Federal Reserve is likely to raise interest rates.
NEW YORK (Reuters) - U.S. stock index futures edged higher on Thursday, suggesting a partial rebound following a string of declines, as investors looked ahead to data for indications of how soon the Federal Reserve is likely to raise interest rates.
The global currency wars are getting ever more violent, following yesterday's unexpected entry of Thailand and South Korea, whose central banks were #23 and #24 to ease monetary conditions in 2015, confirming the threat of a global USD margin call is clear and present (see "The Global Dollar Funding Shortage Is Back With A Vengeance And "This Time It's Different"). But the one currency everyone continues to watch is the Euro, which the closer it gets to parity with the USD, the more volatile it becomes, and moments after touching a 1.04-handle coupled with the DXY rising above 100 for the first time in 12 years, the EURUSD saw a huge short squeeze which sent it nearly 150 pips higher to 1.0643, before the selling resumed.
Indeed, FX markets have been the main source of focus so far with once again the USD-index being the main source of price action. Overnight, the USD posted a fresh 12yr high after briefly breaking above the key 100.00 level, sending EUR/USD below 1.0500 for the first time since Jan'03. However, heading into the European open and a failed sustained break of 100.00 for the USD-index, the USD saw a bout of weakness which subsequently provided a lift to its major counterparts with EUR/USD and GBP/USD temporarily breaking back above 1.0600 and 1.5000 respectively, with RANsquawk sources noting Asian buyers in EUR/USD. One wonders if the BOJ is now also intervening on behalf of the ECB when things gets serious. However, this momentum for EUR/USD failed to sustain at the USD-index pared some of its initial losses, while GBP remained at its highs after the latest UK trade balance report showed a narrower deficit th ...
LONDON (Reuters) - The euro pulled out of its recent dive and the dollar eased off the accelerator pedal on Thursday, as markets took a breather after a week of breakneck moves in the world's two biggest currencies.
(Reuters) - With shallow pockets but a deep commitment to promote "living wages", women's advocacy group UltraViolet has peppered Target Corp with cheap location-focused online ads, challenging it to match Wal-Mart Stores Inc's promise of $10-an-hour base pay.
One of the biggest conundrums, one that has profound monetary policy implications, and that has been stumping the Fed for the past year is how can it be possible that with 5.5% unemployment there is virtually no wage growth. The mystery only deepens when the Fed listens to so-called economist experts who tell it wage growth is imminent, if not here already, and it is merely not being captured by the various data series. Friday's jobs data merely confirmed that since the Lehman crash there has been virtually no real wage growth, as the increase in nominal average hourly earnings is right on top of the Fed's inflation target, instead of where Yellen would like to see it: somewhere in the vicinity of 4%.
And yet, when sophisticated, erudite pundits, usually from a paid leadership position, look at the data, they say wages are growing.
How is that possible?
Actually, the mystery only deepens when one looks not at the wages for the set of All Employees as shown above, but for the 80% or so classified by the BLS as "production and non-supervisory employees" who "account for approximately four-fifths of the total employment on private nonfarm payrolls." The Bureau of Labor Statistics defines them as follows:
Production and related employees include working supervisors and all nonsupervisory e ...
This is a key year for China's economy. Facing lower economic growth, decline of productivity and escape of domestic capital, China has to make reasonable marco-control adjustments to stablize economic operations while nurturing innovative small businesses, achieving an "economic new normal" and accomplishing a difficult economic transition. In all, China has to walk on long, slow road to reform.
The question as to whether U.S. stocks are currently overvalued continues to trouble global markets. This is especially true as stocks have seen much higher volatility so far in 2015. Here's a quick answer: on an abstract and historical basis, stocks seem to be overvalued. The most common analytical tools for measuring stock market attractiveness continue to be price-to-earnings ratio and the discount cash flow analysis (DCF). As tried and tested as these tools are, without understanding the context of the investment atmosphere, any determination of stock market valuations is apt to be wrong.
HONG KONG/LONDON (Reuters) - Incoming Credit Suisse boss Tidjane Thiam is expected to focus on private banking in Asia while aggressively cutting jobs at its investment bank, as he aims to repeat the success in the region of his old employer, Prudential.
LOS ANGELES/CHICAGO (Reuters) - KFC, the world's largest chain of fried chicken restaurants, may face pressure from consumer and environmental groups to change how its poultry are raised after McDonald's Corp said it would switch to chicken raised without human antibiotics.
As the world's dollar funding shortage continues to unwind, EURUSD has re-collapsed to a 1.04 handle in the Asia session and dragged The USD Index above 100 for the first time since 2003. This is now the fastest surge in the USD since records began and EM FX is getting monkey-hammered. Swissy has almost retraced the entire post-SNB de-peg surge. USD strength has weakened JPY and thus miraculously lifted US equity futures (just as it did last night before the dead cat bounce collapsed to lower-lows).
EURUSD 1.04 (600 pips lower since payrolls)... and USD Index 100.00 (highest since 2003)
EM FX is getting slayed...
EUR has weakened more than twice as much as the Ruble this year...
Econintersect wants your comments,
data and opinion on the articles posted. As the internet is a
"war zone" of trolls, hackers and spammers - Econintersect must balance its
defences against ease of commenting. We have joined with Livefyre
to manage our comment streams.
To comment, using Livefyre just click the "Sign In" button at the top-left corner of
the comment box below. You can create a commenting account using your
favorite social network such as Twitter, Facebook, Google+, LinkedIn or
Open ID - or open a Livefyre account using your email address.
You can also comment using Facebook directly using he comment block below.
Econintersect Live Market
Print this page or create a PDF file of this page
The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.
Take a look at what is going on inside of Econintersect.com