Brexit doom predictions – the Y2K of today

August 31, 2018 Bilal 0

Anyway, the August edition of ‘Brexit Watch’ has come out now and didn’t disappoint. The manic anti-Brexit bias continues. Very little understanding of the impact of the irresponsible fiscal strategy is demonstrated. The same hacks get a ‘guernsey’ and prophesies of doom abound.

China Invents a Different Way to Run an Economy

August 31, 2018 Bilal 0

Although it’s hard to get a clear picture of China’s overall credit policy — because there are so many policy levers, and because so much is done behind closed doors — it appears that the country is feeling out a novel approach to macroeconomic stabilization. That program focuses on asset prices, bank finance, real estate and administrative control of banks.

Italian risk spreads: Fiscal versus redenomination risk

August 31, 2018 Bilal 0

Over the last few months, the risk premia on Italian government bonds have increased considerably. This column uses data on sovereign credit default swaps and governments bonds denominated in different currencies to disentangle fiscal risk from redenomination risk (i.e. the risk of Italy leaving the euro). Redenomination risk appears to be responsible for about half of the overall increase in the spread, suggesting that playing with the idea of exiting the euro can be costly even if public finances remain under control.

Bull market: Who gets credit for the record run in stocks?

August 31, 2018 Bilal 0

Bernanke and his Fed justify a second thank-you note for being overly cautious and using QE to address “too big to fail” by recapitalizing banks through the back door. Finally, thank every dour headline from the past nine-plus years for helping keep euphoria at bay and stocks’ fundamental strength a secret.

Being the market leader is not everything

August 31, 2018 Bilal 0

The market share of a company does not have a strong influence on its financial performance, a new study in marketing at the Faculty of Management, Economics and Social Sciences of the University of Cologne shows. Companies should instead invest in building customer relationships and a strong brand.

Why Doesn’t The Stock Market Care About the News?

August 31, 2018 Bilal 0

Markets don’t care who the president is. People may not like to hear this but it’s true. Investors care about earnings, interest rates, trends, and sentiment. The stock market and the economy are bigger than any one person or one administration.

Euro Area Inflation: Why Low For So Long?

August 31, 2018 Bilal 0

The euro area economy is in its fifth year of recovery, unemployment is close to its pre-crisis level and the output gaps of most countries have closed. Yet, core inflation continues to be low, notwithstanding temporarily high headline inflation due to higher energy prices.source