Monday, August 16, 2010

Daily Markets - Hot Stocks For Monday 16 August: Google, AIG, Bank of America, BP, SAP, Shell, Lloyds

Daily Markets - Hot Stocks For Monday 16 August: Google, AIG, Bank of America, BP, SAP, Shell, Lloyds


Hot Stocks For Monday 16 August: Google, AIG, Bank of America, BP, SAP, Shell, Lloyds

Posted: 16 Aug 2010 03:50 AM PDT

UK Retailers - The number of retailers showing signs of stress was up 3% in July compared with the same period last year. This is the first time in five months Begbies Traynor has recorded a rise in the number of struggling companies. (Sunday Times)

UK

BP (NYSE:BP) - Co. will get the go-ahead to finish a relief well to finally seal its blown-out oil well but is doing a last batch of testing and planning first, the top government official overseeing the Gulf of Mexico oil spill said on … [visit site to read more]


With The Fed’s Wake-up Call On The State Of The World, The Euro’s Latest Retracement Is Likely Done

Posted: 16 Aug 2010 03:04 AM PDT

The Fed surprised many people this week when it announced it would respond to the deteriorating economy with more efforts to stimulate.

It was a splash of cold water on the face of the world, a wake-up call that hammered home the reality of the economic climate: The recession wasn’t normal, the recovery wasn’t real, and we’re only half way through what will likely be described as a global depression.

The recent deterioration in global economic data, led by the U.S., is clearly showing … [visit site to read more]


Forex Trading: Eurozone CPI As Expected

Posted: 16 Aug 2010 02:06 AM PDT

Eurozone CPI y/y came in at 1.7%, inline with expectations and its prior reading.
Core CPI y/y came in at 1.0%, inline with exepctations and a slight improvement over the 0.9% prior reading.
No market reaction to figures as Eur/Usd trades at … [visit site to read more]


The U.S. Bond Bubble Has Already Popped

Posted: 16 Aug 2010 01:01 AM PDT

We’ve had quite the debate lately as to whether bonds are in a bubble or not. I actually think they were in a bubble, but the bubble has already popped.

First off know that bond cycles tend to be very long and reverse very slowly. So we aren’t going to see bonds just collapse like a stock market crash and all of a sudden we have interest rates pushing 15%. That just doesn’t happen in the bond market.

Know also that 25 to 30 years is about as long as a bond cycle ever lasts.

Now … [visit site to read more]


Bond Market 1, Stock Market 0

Posted: 16 Aug 2010 12:30 AM PDT

Recently some have observed that the US stock market and bond markets have rallied together - an unusual condition. The Economist/Buttonwood blog wrote:
This reminds me a bit of the late 1990s when, as a tech sceptic, I wondered why the stockmarket kept surging to stratospheric valuations. Whatever the headlines the market went up. Good news on the economy meant profits would be strong while bad news meant that central banks would cut rates, and thus profits would eventually be strong.
Fast … [visit site to read more]


Crude Oil To Move On Growth Outlook, Gold A Safe Haven For Now

Posted: 15 Aug 2010 11:51 PM PDT

Commodities – Energy
Crude Oil to Move on Growth Outlook
Crude Oil (WTI) $75.59 // +$0.20// +0.27%
Commentary: Crude oil is little changed in overnight trade after falling dramatically last week. Crude shed over $6/barrel, or 7.5% over four sessions, as global growth concerns reemerged following cautious comments from the U.S. Federal Reserve. This week is likely to feature more of the same consternation surrounding the state of growth around the world, but with prices notably lower than they … [visit site to read more]


Forex Trading: Eur/Usd Trading Near 100 Day M/A

Posted: 15 Aug 2010 11:04 PM PDT

After trading lower earlier in the session Eur/Usd has recouped some of its losses and is testing its 100 day M/A of 1.2794. It will be interesting to see if the Europeans propel the pair through this level or view this as a selling opportunity. A break above could bring Eur/Usd to 1.2900 or higher. If this level holds a considerable sell off is possible, with 1.2605 a good downside target (50% … [visit site to read more]


So Just How Dangerous Is The U.S. Trade Deficit?

Posted: 15 Aug 2010 10:01 PM PDT

When they hear the word deficit, most Americans immediately think of the U.S. government budget deficit which is rapidly spiralling out of control.  But that is not the only deficit which is ripping the U.S. economy to shreds.  In fact, many economists commonly speak of the “twin deficits” that are destroying the U.S. financial system.  So what is the “other deficit” that they are referring to?  It is the trade deficit.  Every single month, we buy much more stuff from the rest of … [visit site to read more]


Being Contrarian On China

Posted: 15 Aug 2010 08:01 PM PDT

The news and analysis about economic conditions in China has turned decidedly negative of late after the latest round of key indicators - GDP growth, imports, fixed asset investment and industrial output - showed signs that a broader slowdown could be coming.

The discussion has had a very short-term focus, while the Beijing government has taken a longer view by taking some of the hot air out of the property sector to head off the kind of 2008-09 bust that dragged down the U.S. and … [visit site to read more]


Inflation Variability Reached All-Time Highs In 2009

Posted: 15 Aug 2010 06:03 PM PDT

 
There’s been a lot of debate lately about inflation, and many conflicting opinions about whether we’re headed for inflation or deflation.  The consensus among economists seems to be now leaning more towards pending deflation than inflation, and yet gold, the classic hedge against pending inflation, is still trading close to all-time historical highs of around $1200 per ounce, double the price four years ago and triple the price five years ago.  … [visit site to read more]


More Than A Million

Posted: 15 Aug 2010 05:30 PM PDT

in countries with vast social safety nets, there are plenty of people who abuse the system and milk it for all its worth. That’s true even in the U.S. when it comes to certain public assistance programs, especially when they offer few opportunities and incentives for recipients to acquire the skills and confidence they need to survive on their own. Many conservatives argue that the same holds true even for temporary backstops like unemployment insurance. However, based on first-hand knowledge … [visit site to read more]


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