Salient to Investors: Brian Jones at Societe Generale said hiring;s remarkable stability will continue and economic growth will accelerate in half2 – everybody expects Fed tapering in September. UniCredit and Deutsche Bank Securities say payroll gains averaging 202,000 a month in half1 typically link with GDP growth close to 3 percent,
READ MORE... →Salient to Investors: UniCredit Group and Deutsche Bank Securities say payrolls gains are typically linked with GDP growing close to 3 percent. Harm Bandholz at UniCredit said the employment numbers are closer to the true picture and ,” expects GDP growth to pick up in half2 and even more in 2014. Joseph
READ MORE... →Salient to Investors: The IMF said the Fed exit from QE could cause excessive interest-rate volatility which would have adverse global implications. The IMF maintained its US growth forecast for 2013 at 1.7 percent, saying housing and labor markets are improving, and its 2014 growth forecast of 2.7 percent, but said that fiscal deficit
READ MORE... →Salient to Investors: William Pesek writes: Abe’s economic plans draws heavily on Reaganomics: welfare-spending cuts, debt-swelling tax reductions for the wealthy and corporations, deregulation, a lowering of trade barriers, and reforms that make it easier to fire workers. As in the US, these reforms could hollow out the middle class and
READ MORE... →Salient to Investors: Kyohei Morita and Yuichiro Nagai at Barclays said: Abe’s policies can succeed even if wages don’t immediately accompany price increases, because 2.21 million people born between 1947 and 1949 are starting to retire and will become buyers rather than workers and savers, even as the total population declines.
READ MORE... →Salient to Investors: Gail Whiteman at Erasmus University and other scientists say that the release of large amounts of methane from thawing permafrost in the Arctic could cost $60 trillion, or roughly the size of the global economy in 2012, with impacts most likely to be felt in developing countries, which are more
READ MORE... →Salient to Investors: ARM applications in late June rose to the highest level since 2008. loan pay Cameron Findlay at Discover Financial Service said we’ve seen a shift in the way people look at adjustable-rate mortgages: they are still skeptical but the sticker shock of fixed rates is making them
READ MORE... →Salient to Investors: George Friedman writes: China has been in an economic crisis for a while, unrecognized outside China and particularly in the US. Paul Krugman last week wrote in The New York Times that the signs that China is in big trouble are unmistakable, its economic system has reached
READ MORE... →Salient to Investors: A. Gary Shilling at A. Gary Shilling & Co writes: The outlook for the labor market remains bleak. Older Americans are holding onto jobs longer, limiting openings for newcomers, and employers are extending working hours and paying overtime rather than hiring. In June 2013, almost 11 million people
READ MORE... →Salient to Investors: Nouriel Roubini writes: QE is not creating credit for the real economy, but instead boosting leverage and risk-taking in financial markets. The issuance of risky junk bonds is increasing and the stock market is at new highs, despite the growth slowdown. Money is flowing to high-yielding emerging markets.
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