econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



>> Click Here for Historical Wall Post Listing <<

What We Read Today 12 September 2014

Econintersect: Every day our editors collect the most interesting things they find from around the internet and present a summary "reading list" which will include very brief summaries (and sometimes longer ones) of why each item has gotten our attention. Suggestions from readers for "reading list" items are gratefully reviewed, although sometimes space limits the number included.

  • ‘Bizarre’ surge in Australia jobs numbers (Jamie Smyth, Financial Times) Official data yesterday showed seasonally adjusted unemployment fell from 6.4% in July in August to 6.1% in August. The number of people employed jumped by 121,000 to 11.7m. The employment numbers were boosted by a large increase in part-time employment.

The size of the employment jump in proportion to population is the equivalent of 1.5 million increase in employment in the U.S.. That is why it is being called a sampling error by some. Note: Australia's unemployment rate is subject to frequent sharp ups and downs. The July increase and August decline a little larger than the others in recent years.

australia-unemployment-rate-ft-2014-sep-11

  • U.S. threatened massive fine to force Yahoo to release data (Craig Timberg, The Washington Post) Court records have been unsealed which show how Yahoo! was eventually forced by court order to provide company data on users to the U.S. government as part of NSA (National Security Administration) activities. Before the final rulings the government threatened to impose extra-judicial administrative fines on the company of $250,000 a day in an effort to get them (Yahoo!) to "voluntarily turn over what the court ordered them to in the end. Yahoo! resisted, stating they believed the request was unconstitutional. As part of the final court decision Yahoo! was forbidden to make any public statements about the entire proceedings.
  • Scottish support for independence slips behind unionists a week before vote: poll (Allistair Smout and Angus MacSwan, Reuters) The YouGov survey for The Times and Sun newspapers put Scottish support for the union at 52 percent versus support for independence at 48 percent, excluding those who said they did not know how they would vote. YouGov's last poll showed support for independence at 51 percent. The margin of error is 2-3% so the recent results are not significantly different from a tie.

alibaba-MandA-bloomberg-2014-sep-11

  • Recent articles about Ferguson:

New witnesses to Ferguson shooting come forward (KSDK.com)

  • Articles about wars elsewhere in the world:

Nigeria's Boko Haram puts Maiduguri under 'siege' (BBC News)

Syria airstrikes need boots on the ground, AF officer says (USA Today)

Obama's Next Move Against Islamic State (Bloomberg Editors)

Russia warns US against strikes on Islamic State in Syria (BBC News)

Islamic State crisis: Kurds 'ready for action' in Iraq (BBC News) Includes video

With Gas Cut Off, Ukraine Looks West (The New York Times)

Russia faces new U.S., EU sanctions over Ukraine crisis (Adrian Croft and Arshad Mohammed, Reuters)

Obama Says U.S. Will Join EU in Tighter Russia Sanctions (Roger Runningen, Bloomberg)

Russia Sanctions Are a Race to the Bottom (Leonid Bershidsky, Bloomberg View)


There are 13 articles discussed today 'behind the wall'.

Do not miss "Other Economics and Business Items of Note", the final section every day.

Please support all that we do at Global Economic Intersection with a subscription to our premium content 'behind the wall'.

There are between 75 and 100 articles reviewed most weeks. That is in addition to the 140-160 articles of free content we provide.

You get a full year for only $25.


  • And the market says No (Dan McCrum, FT Alphaville) Free registration required. With one week to go the gambling odds are 6:5 for 'No' ($5 bet will gain an additional dollar back if a winner) and 10:3 for 'Yes' (a winning $3 bet will get $10).

scotland-bet-no-dan-mccrum-2014-sep-11

  • Credit Agricole Near Accord in Sanctions Probe (Suzi Ring and Fabio Benedetti-Valentini, Bloomberg) The charges concern money laundering involving violations of trade embargoes and sanctions with countries such as Iran. Rumors have the settlement to be between $500 million and $1 billion.
  • How 'Keynes' Became a Dirty Word (Noah Smith, Bloomberg View) Smith says the association of the words "socialist," "progressive," or "liberal," is wrong. First, says Smith, Keynesian (more precisely "New Keynesian") economists deal with models which try to explain how monetary policy affects the economy and has little to do with what might be called political economy, or policy setting. Many New Keynesian economist lists include those who are generally considered "conservative", such as Milton Friedman, Greg Mankiew and John Taylor. Econintersect: Noah Smith barely scratches the surface of the misrepresentation of John Maynard Keynes. See Keynes’ General Theory, the ISLM and Roy Harrod’s ‘Dynamics’ (Philip Pilkington, GEI Analysis, 07 September 2014) and Pilkington: Keynes Was Misinterpreted from the Start (John Lounsbury, GEI News, 08 September 2014)
  • The State of U.S. New Home Market (Ironman, Political Calculations) The state of the new home market is close to where it should be based on capitalization fo new homes and previous historical levels. Using this as a guide there is no reason to expect that this is a new bubble and that a sharp decline could be imminent, But growth above the current level of new home sales is not likely either. The bubble from the late 1990s to 2006 created a memory which too many are using as a standard. Shouldn't the current market look more like the 1970s and 1980s. So far it does. The outlook for a couple (or several) years is for little more price x volume advance for new homes and the next market move after that is more likely down than up.

Click for large image at Political Calculations.
new-home-sales-maket-cap-2014-sep-11

  • Pimco’s Gross Says Good Time to Lever Up on Credit Investments (Lisa Abramowicz, Bloomberg) Bill Gross suggested Thursday that this was a good time use leverage "in a mild way" for U.S. Treasuries. For the next three to five years investors might do well borrowing money at today's low rates and buying long matrity Treasuries paying a higher dividend. This is a borrow short and buy long carry trade strategy which gooses returns as long as market value of the Treasuries stays high. Of course, if interest rates rise then market value falls and leverage multiples the losses. This is the month after Gross sold Treasuries in August when the market was rallying (Gross Cut Government Debt in August as Treasuries Rallied). Logically he could now be accused of buying at the top. Or did he change his mind over the last couple of weeks? Or does he just like to hear himself talk?
  • Why the key to the economy could be in your gas tank (Patti Domm, CNBC) Hat tip to Marvin Clark. For every 10 cents the price of gasoline drops and stays there, an additional 0.1% is added to GDP. It is possible that gasoline that averaged $3.70 a gallon nationally a few months ago could hit $3 by year end. But can it stay there? Some are skeptical.
  • Canadian dollar Loses 4% in Two Months (Walter Kurtz, The Daily Shot email, no url) Falling oil prices and a weakening domestic economy are having their impacts.

usdcad-daily-shot-2014-sep-11

  • Financial Strategies for the New Single Majority (Ben Steverman, Ventured & Gained, Bloomberg) There is a new majority in the U.S., possibly for the first time since maybe in colonial days. The new majority is single people. The "earliest comparable statistic available, 37 percents of adults were single" in 1973. This article discusses the implications of single status on managing personal finances.

exxon-rosneft-arctic-plans

  • Other Economics and Business Items of Note

Tech Turns Chicago Skid Row Into Top Market (Bloomberg)

Clash of the titans: Wal-Mart rejects Apple Pay to pursue a competing mobile payment system (The Washington Post)

Living Simply in a Dumpster (The Atlantic)

Nevada lawmakers approve $1.3 billion in tax breaks for electric car maker Tesla (Reuters)

Twitter Seeks Up to $1.5 Billion in Debt Offering (Bloomberg)

Have Economists Been Captured by Business Interests? (Harvard Business Review)

Have Markets Become More Dovish Than the Fed? (The Wall Street Journal)

Paul Pfleiderer on the Misuse of Economic Models (Library of Economics and Liberty) Audio file of interview.

Look for a 5 to 10 percent correction in stocks - Rosenberg (Reuters) Video

The content of standard introductory economics courses (Real-World Economics Review Blog)

Facebook Says Chinese Want Its Site as Regulator Says No (Bloomberg)

Dollar hits fresh six-year high versus yen, Aussie flounders (Reuters)


Make a Comment

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, 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.






Econintersect Behind the Wall



search_box

Print this page or create a PDF file of this page
Print Friendly and PDF


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
Main Home
Analysis Blog
The Job Guarantee, Wage-Price Inflation And Alternative Solutions: Part 1
The Job Guarantee, Wage-Price Inflation And Alternative Solutions: Part 2
News Blog
PewDiePie Weathering The Storm
American Doctors: The Prognosis Isn't Good
What We Read Today 24 March 2017
The Federal Reserve Banks Provided $91.5 Billion Remittances To The U.S. Treasury In 2016
17 March 2017: ECRI's WLI Growth Index Shows Continued Moderate Slowing Of Rate of Growth
Durable Goods New Orders Improved in February 2017
Why NASA Won't Send Humans To Venus
Rail Week Ending 18 March 2017: Short Term Rate of Growth Slowing
How Taxes And Transfers Affect The Work Incentives Of People With Low And Moderate Income
How Tourism Affects China's Current Account Surplus
Infographic Of The Day: The Habits Of Highly Successful Entrepreneurs
To Where The Maple Syrup Flows
The U.S. Has The Most Expensive Healthcare System In The World
Investing Blog
Investing.com Weekly Wrap-Up 24 March 2017
Early Headlines: Asia Stocks Mixed, Dollar, Oil Up, Gold Down, Health Care Vote Today, Calif. Solar, Russia And Poison, Mumbai Bridge, Sanctions Cause Suffering In N. Korea, And More
Opinion Blog
Is Our Hard-wired Negativity Bias Useful Or Something To Overcome?
Time To Stop Rewarding Economists For Bad Behaviour
Precious Metals Blog
These Gold Stocks Will Produce Much Bigger Gains Than Gold Itself
Live Markets
24Mar2017 Market Close: Trumpcare Collapses But Little Affect On The Markets
Amazon Books & More






.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government































 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved