Salient to Investors: IMF says: Risks of a slowdown are alarmingly high primarily because of policy uncertainty in the US and Europe. Global growth will be 3.3 percent in 2012 and 3.6 percent in 2013, with a 15 percent chance of recession in the US in 2013, 25 percent in Japan, and
READ MORE... →Salient to Investors: Bruce Kasman at JPMorgan Chase said we are not seeing a further loss of momentum, a very important positive, and the said economy is expanding at a 2 percent rate. Kasman said the employment report suggests that weakness in capital spending is not broadening out to hiring. Confidence is growing at
READ MORE... →Salient to Investors: The percentage of working-age adults who are employed is near a 30-year low at 63.6%, no better than when the Fed first began QE several years ago. The unemployment rate would be 9.8% if it included working-aged people who have stopped participating, and 14.7% if it included the underemployed.
READ MORE... →Salient to Investors: Jim O’Neill at Goldman Sachs Asset Mgmt said when we come out the other side with a different structure, we should have a much stronger world economy. John Bilton at Bank of America Merrill Lynch sees a changing complexion in global growth, ending with a more balanced world economy longer-term. Bilton said this will
READ MORE... →Salient to Investors: Lawrence Mishel at the Economic Policy Institute says: The jobs report shows nice momentum, though increase in payrolls is not fast enough to get a rapid decline in unemployment. The jobs data is not manipulated – the data is based on surveys of tens of thousands of employers and households every month.
READ MORE... →Salient to Investors: The jobs number is tremendously volatile and no one takes it at face value – especially so when the economy is making a turn or regular seasonal patterns start to change. Historically, employment numbers for workers between 20 and 24 years old drop sharply in September – by an
READ MORE... →Salient to Investors: Alan Krueger of the White House Council of Economic Advisers said the falling jobless rate shows the economy is continuing to heal. Alan Abramowitz at Emory University said the unemployment drop to under 8 percent is symbolically important to voters and dominate news coverage for several days and blunt Romney’s debate
READ MORE... →Salient to Investors: Douglas Cote at ING said the recent coordinated global monetary stimulus is showing up in employment, manufacturing, services and consumer sentiment going from weakening to strengthening. Philip Orlando at Federated Investors expects Draghi to keep his foot off the accelerator. Analysts forecast an end to coal’s longest slump in seven
READ MORE... →Salient to Investors: Paul Krugman of Princeton University said: The US and EU are nowhere close to ending the financial crisis and German-led austerity efforts may lead to a 1930s-style economic depression. The US needs maximum help from the Fed and another round of stimulus -which should be directed to distressed individuals
READ MORE... →Salient to Investors: Laurence D. Fink at BlackRock says: Investors should get out of cash and low-yielding bonds and buy high-quality stocks, ETFs and higher-income products. The economy is a year away from being more robust. The US banking system is far better than others, while housing crisis is 90 percent behind us. Chris Leavy at BlackRock said equities
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