Hot Topics

NIBC: Mixed signals about economic activity
The Chart of the Week shows real exports and government expenditures in Japan. After eurozone inflation fell to 0.4% in July and eurozone GDP growth stagnated in Q2, financial market participants strongly urge the ECB to engage in quantitative easing. The purchase...
Global Macro Matters: Higher inflation? Follow the money . . .
Wage pressures are a "canary in the coal mine" for trend inflection points. Over the past three decades, the public's expectations for future inflation have been a critical factor influencing core inflation trends. Inflation expectations are reflected in the link...
NIBC: Rising financial market nervousness on global risks
The Chart of the Week shows the annual change in the unemployment rate and the federal funds target rate, the Federal Reserve’s main policy rate. The Federal Reserve’s policymakers argue that “there remains significant underutilisation of labour resources”. Yet,...
Faber expects massive sell-off
The Swiss market guru Marc expects huge sell-offs later this year. Faber reported to Bloomberg that the current bull market, started in Augustus 2009, should be at his end. A five year period is way too long for a bull market compared to the real development of...
The Dow Jones Industrial Average: a Fata Morgana
Wim Grommen, The Dow Jones Industrial Average: a Fata Morgana The Dow Jones Industrial Average (DJIA) Index is the only stock market index that covers both the second and the third industrial revolution. Calculating share indexes such as the Dow Jones Industrial...
U.S. Economy Shrank
For the first time in three years the U.S. economy shrank for the first time in three years because companies reduced investment and added inventories at a much slower pace. The Commerce Department said today in Washington that in the first quarter GDP decreased...
Vivus shareholder eyes to buy company in $640 million deal
Vivus Inc's largest shareholder, Aspen Investment Fund said it was planning to acquire the company in a $640 million deal. On Wednesday, in a regulatory filing Aspen said it intended to have discussions with Vivus about its strategic and operations plans, management...
Yellen Has Limited Power to Reduce U.S. Housing Slowdown
Federal Reserve Chair Janet Yellen and her colleagues are concerned and surprised by the timid housing recovery. On May 7, in testimony to Congress Yellen termed the industry as a risk to the outlook. Although the industry is recovering from devastation of first...
World shares near all-time high
World shares are near an all-time high and the euro is steady, because the ECB ensured that global liquidity will prolong. In most of the big economies of the world, record-low interest rates support asset markets. Britain's FTSE opened 0.3% higher. The rest...
Alibaba’s China Base Is Good News and Bad News for IPO Investors
It is very easy to get attracted by glossy numbers in Alibaba’s IPO prospectus: 231 million active buyers last year, 72% revenue growth and 44% profit margins. After page 19 of the document, is a grim reminder that putting money in a Chinese company -- particularly...
Draghi Says ECB Should Be Vigilant on Low Inflation
European Central Bank President Mario Draghi, hinted that policy makers are prepared to take measures in June if they observe low inflation is getting entrenched. Draghi is attempting to steer the euro area through a weak economic recovery which is endangered...
China and Russia Sign $400 Billion Gas Deal
After more than a decade of negotiations, a deal has been signed between the world’s largest consumer and biggest energy producer. According to the deal, worth $400 billion, Russia will supply 38 billion cubic meters of natural gas annually to China over 30 years...
Bank of England Keeps Interest Rate Unchanged
In the minutes of meeting, the nine members of the Monetary Policy Committee of the Bank of England unanimously agreed to keep the key interest rate at 0.5% this month. Governor Mark Carney’s earlier direction focused on unemployment, which was replaced by the...
European economy grew faster than U.S.
Although economic growth of Europe was slower than expected in the first quarter of 2014, it was still faster than the U.S. for the first time in 3 years. In the first quarter the growth in the U.S. was 0.1% as harsh winter weather depressed business investment,...
Natural Disasters Bigger Threat to World’s Top Companies
According to the Carbon Disclosure Project, rising seas, hurricanes and drought are becoming more and more important threats to the world’s largest firms and the risk is increasing. Firms planning for different threats linked to climate change say they are coping...