genie

investors Finally Get What They Wished For Are Rubbing Their Lamps Again

Government bonds are continuing to sell off today: “the US 10-year Treasury yield rose to 2.36 per cent in early New York trading, its highest level since November…Euphoria over the [ECB’s] €60bn-a-month monetary stimulus that pulled the German 10-year bond yield down towards zero per cent last month has faded on improving growth prospects and climbing inflation expectations…’[the sell-off] is starting to stretch the boundaries of what you could call a technical correction.  A lot of strategists are getting nervous,’” says a strategist.   John Williams, however, thinks nervous is healthy: “my personal preference is that we don’t have the most telegraphed policy decisions in history, as we did in 2004…In a normal economy there is some volatility in markets, that is just a healthy functioning of markets trying to understand and filter what the data means for policy.”  Meanwhile, German Bund investors may need to up their intake of aspirin: “It took 102 trading days for 10-year Bund yields to rally from 68bp to their all-time low of 7bp on April 20th.  It took just 15 days after that to jump back to 68bp again.”  Furthermore, “in the volatility of the last week, the backdrop of negative yielding assets in Europe has changed significantly.  Higher yields means fewer negative yields…But even €1 trillion down..negative yielding Eurozone government debt remains greater than the size of positive yielding Euro credit.”  Reuters thinks this could be “a shot in the arm” for the ECB:  “this has broadened the pool of bonds the ECB can buy under its quantitative easing (QE) purchase programme, which excludes all paper yielding below the minus 20 basis points that corresponds to the bank’s deposit rate.”  Meanwhile, “if bond yields are going up because investors demand a higher premium for holding risk, then the losses on riskier assets like equities ought to be bigger still.  But that doesn’t appear to be the case.  Government bond yields seem to have ticked higher because inflation expectations have been rising…If bond yields are going up because growth expectations are picking up, this should ultimately be favorable for equity markets, albeit after a round of near-term volatility.”  Also, the main argument for why this is a “technical” correction has been the surprise announcement by Treasury to issue $64 billion in treasuries this week.  However, “demand for the U.S. government securities sold at auction has declined in each of the past three months, after also slumping in the August-through-October 2014 period…the Treasury is also competing with more than $20 billion of debt slated to be sold by companies.”  We should get a preview of the “technical” correction thesis today as $24 billion three-year notes go up for auction.  Stay tuned.

 

Mo’ Money, Mo’ Problems

“While [Apple] may well become the first $1 trillion market cap company (Carl Icahn’s recently top-ticking tweets notwithstanding), did you know that AAPL is now bigger than the entire market cap of all Spanish stocks combined?  Or that Austria’s $99 billion gross market cap is the size of Mastercard.  Or that Finland’s entire stock market is about the size of Verizon?”  Speaking of which, Finland Verizon has no idea what to do with all their money is buying AOL.  Also, mutual funds have no idea what to do with all their money are hunting unicorns.  Also, sovereign wealth funds have no idea what to do with all their money are “[harnessing] the premium associated with more illiquid assets.

 

USA: Retail Sales Indicate Divergence Between East And West Coasts

 

Tech: Google Is Currently Putting 10,000 Miles A Week On Their Self-Driving Cars

 

USA: Why Do You Think Disney’s Rags-To-Riches Love Stories Are So Popular?

pocket protector

Cautious Conversations

John Williams: “I think the data show that U.S. inflation can be easily modeled in the following way: It runs about 2 percent, and then there is some fluctuation from commodity/import prices and the amount of slack in the labor market…to me it’s not that much of a puzzle that underlying inflation is running about half a percentage point below our 2 percent goal.”  Furthermore, “I don’t think [low inflation abroad] speaks in any way to whether the U.S. can hit its 2 percent goal.  We know from history that we are able to control our own inflation rate through monetary policy despite other countries having rates that are higher or lower than ours is.”  Ben Bernanke: “I don’t see anything magical about targeting two percent inflation.  My advocacy of inflation targets as an academic and Fed governor was based much more on transparency and communication advantages of the approach and not as much on the specific choice of target.”  In regards to the future of monetary policy, Ben likes a big balance sheet: “monetary control might be more, rather than less, effective if the Fed [managed interest rates] by its settings of the interest rate paid on excess reserves and the overnight reverse repo rate.”  Also, a large balance sheet “facilitates the creation of an elastically supplied, safe, short-term asset for the private sector, in a world in which such assets seem to be in short supply.”  John seems to agree: “This is a typical Fed belts-and-suspenders approach.  We’re not exactly sure how interest rates will behave and so we want to make sure that we have the full set of tools and programs…it’s a lot of contingency planning.”

 

Millennials Trust Each Other And Basically No One Else

“Nearly one in three Americans who are now having to pay down their student debt…are at least a month behind on their payments,” says the St Louis Fed.  “Delinquencies on student debt are far higher than those for other forms of consumer credit, including credit cards, mortgages and auto loans…Delinquencies are no longer rising.  But they’re not going down, either.”  Meanwhile, PricewaterhouseCoopers sees a trend in the renting “sharing” economy: “We’re witnessing the rise of companies predicated on trust among strangers at the same time as general trust in society is actually falling…Why are hundreds of thousands of people letting strangers rent their bedrooms or drive their cars if society is growing more cynical?”  The answer: while trust in individuals and institutions is deteriorating, faith in the crowd is growing.  “In other words, I don’t trust you, Random Guy Giving Me A Ride Home, but I do trust the 4.9-star average rating of all the people who’ve been in your car before.”  Meanwhile, “if you think Chris Christie’s Social Security plan is bold, you should see Team 109’s.

 

ECB: Draghi Isn’t Worried About Scarcity Of QE Eligible Bonds

 

USA: As Long As He Keeps Blogging More Power To Him

 

ICYMI: Bonds Beware As Money Catches Fire In The US And Europe

That whole velocity of money thing isn’t really playing out the way some thought…here’s another go at it.

kermit rainbow connection

The Lovers, The Dreamers And Me

Analysts at Citibank and The Economist are coming to Chinese equities’ defense: “The Shanghai index, which includes China’s biggest companies from banks to oil majors, is trading at a forward PE of about 15, in line with its ten-year average.  From this perspective, the rally looks more like a ‘mean-reversion trade’ than something wildly unsustainable.”  “When investors tell us that China is a bubble and expensive all we need to do is highlight…a market which is very certainly an investor favourite, India.  This market is even more expensive relative to all the other markets, and it isn’t as if investor after investor we meet tells us, ‘oh boy that Indian market is hotter than your average Vindaloo.’”  (Side note: valuations suggest that investors are expecting the highest EPS growth rates in India (6.5%), Poland (6.4%), South Africa (6.3%), Indonesia (6.2%) and the Philippines (6%))  “The most striking feature of the Chinese rally in recent weeks has been its crossing of borders…A programme to connect the mainland and Hong Kong stock markets has provided a corridor for channeling excess liquidity out of China.  With A-shares still trading at a 20% premium to H-shares, Chen Li, a strategist at UBS bank, predicts the convergence will continue.”  Meanwhile, “there has been speculation in certain quarters of the markets that a ‘Singapore-China’ stock connect may be in the pipeline.

 

But Wasn’t Distortion Always The Point Of Extraordinary Monetary Policy?

“The European Central Bank has barely started its €1 trillion-plus asset purchase program and already there are mutterings about how it might need to be wound down early.  There are signs of a solid pick-up in the eurozone economy,” as well as “rising bank lending as firms turn more bullish on their growth prospects.”  Yet “on the other side of the equation there are clear market distortions.”  For example: “all over Europe, banks are being compelled to rebuild computer programs, update legal documents and redo spreadsheets to account for negative rates…some banks have faced the paradox of paying interest to those who have borrowed money from them…In Spain, Bakinter has been forced to deduct some clients’ mortgage principal payments because an interest-rate benchmark tied to Switzerland’s currency has dipped into negative territory.”  Meanwhile, Eurostat says the savings rate is moving back up, which may “send minor alarm bells ringing for those who fear that households may respond to falling consumer prices by postponing discretionary prices.”  Then again, Ben Bernanke says higher wages in Germany are good news for everyone: “In a world that is short of aggregate demand, Germany’s trade surplus redirects spending away from other countries, reducing output and incomes abroad.  Higher wages in Germany should promote spending by German households on both domestic goods and imports, reducing the imbalance.”

 

Oil

“One of the most important questions for economists about the past year’s collapse in oil prices is whether it was driven by supply or demand.”  The IMF says “it started out as a bad-news demand story, but turned into the good-news supply story.”  Meanwhile, “China is on an oil-buying spree again.” (alt)

 

USA: Home Services Is One Of The “Few Pots Of Gold Left”

 

USA: Aswath Damodaran Ain’t Buyin The Small Cap Premium

Nothing Changes Until Everything Changes

The percentage of U.S. women in their 30s and 40s who are childless is rising, new data from the U.S. Census Bureau show…47.6% of U.S. women aged 15 to 44 were without children last year, up from 46.5% in 2012…The number of women aged 40 to 44 who had only one child roughly doubled between 1976 and 2014…These trends have helped push America’s fertility rate to record lows, though it should be noted that U.S. fertility still ranks relatively high compared with Europe and Japan.”  Meanwhile, the IMF says the financial crisis has done lasting, significant damage to global growth: “lower potential growth in advanced economies has been driven in roughly equal measure by slower capital accumulation and labor growth — due primarily to adverse demographics…demographic factors are likely to act as a brake on growth in many advanced and emerging market economies, as populations age and workers retire.”  However, “there is still room for optimism — the future trajectory of potential output is not set in stone.”  Meanwhile, global investment in renewable energy “rebounded in 2014 to a near all-time high of $270 billion.”  And thanks to the rapidly decreasing costs of solar and battery technology, “renewable energy capacity added in 2014 was easily an all-time high…Renewables went from 8.5 percent to 9.1 percent of global electricity generation just in 2014…The takeoff of solar-plus-batteries has only begun to ramp up the exponential curve, and market shares are still small.  But it has begun, and it doesn’t look like we’re going back.”  Meanwhile, a team of engineers at Caltech have “developed a very tiny, very powerful 3D imager that can easily fit in a mobile device…the imager may soon allow consumers to snap a photo of just about anything, and then, with a good enough 3D printer, use it to create a real-life replica ‘accurate to within microns of the original object.’”

 

100 Year 4.5% Euro-Denominated Mexican Sovereign Debt

Europe’s plunging borrowing costs marked two new milestones on Wednesday, with Switzerland becoming the first country ever to issue 10-year debt that gives investors a yield under 0%, and Mexico lining up a rare deal to borrow euros that it will repay a century from now…Mexico’s deal, which is set to wrap up later Wednesday, is expected to give investors a yield of about 4.5%.”  Meanwhile, “about 65 percent of the record 60 billion euros of investment-grade bonds sold in March came from overseas companies…and a lot of those sellers are based in the U.S….Debt is so cheap in Europe that U.S. companies are saving money even if they buy currency hedges that have gotten expensive as the dollar’s soared versus the euro…even if the Fed does hike interest rates this year, it may not matter too much to U.S. corporate borrowers.  They’ve found, courtesy of Draghi, a new source of financing that is plenty cheap.”

 

Snapping Up Bargains

A huge jump in equities purchases by Chinese investors (alt) has produced record trading volumes in Hong Kong, a signal that the prolonged stock rally on the mainland is finally spilling into global markets…On Wednesday, southbound turnover — purchases and sales — through the Stock Connect leapt to HK$21bn ($2.7bn), more than three times the previous daily record set on April 2…Wednesday’s moves took the average premium of domestic listing, known as A shares, over Hong Kong-listed H shares down from 35 per cent to 28 per cent…’We think retail investors from across the border will soon be snapping up bargains on the Hong Kong stock market.  With the A share market still rising in spite of weak economic data and poor corporate earnings in China, we believe Hong Kong H shares are becoming an increasingly attractive alternative.’”  Meanwhile, Chinese tech stocks are now trading at “an average 220 times reported profits…higher than those in the U.S. at the height of the dot-com bubble.”

 

Oil: Shell To Buy BG Group For About $70 Billion (Alt)

“The deal, if approved by shareholders and regulators, would make Shell the world’s largest producer of liquefied natural gas…would enable the two European energy giants to eliminate overlapping costs to help offset the impact of weaker prices.”  Meanwhile, here’s the U.S. oil story in seven charts.

 

EU: Should You Invest In A Currency-Hedged International-Equity ETF?

 

Fed: Bernanke Says Central Banks Shouldn’t Set Policy To Mitigate Financial Stability Risk

 

EU: Greek Banks Are Linking Arms

 

What: JPMorgan Is Blowing The Whistle On Its Future Criminals Employees

porky pig

A Th-Th-Th-That’s All, Folks!

Mohamed El-Erian’s portfolio is mostly concentrated in cash right now: “Central banks look at growth, employment, at wages.  They are too low.  They don’t have the instruments they need, but they feel obliged to do something…They hope that they will trigger what’s called the wealth effect…There is a massive gap right now between asset prices and fundamentals.”  “Why is this the most mistrusted bull market in recorded history?  Because no one thinks it’s real.  Everyone believes that it’s a by-product of outrageously extraordinary monetary policy actions rather than the result of fundamental economic growth and productivity — and what the Fed giveth, the Fed can taketh away.”  Meanwhile, “there are two common delusions about the Fed: [1] They know something we don’t [2] They are stupid.” Meanwhile, “there seems to be a conflict between low liquidity in markets requiring more and more predictability and the Fed wanting to have more flexibility…If economic conditions demand that [the Fed] raise rates this year it will simply have to contend with the existing, broken model.”  Meanwhile, “the easy part of the dollar rally is definitely behind us” (alt) …”On Friday, the dollar took its biggest tumble in almost two weeks following slower-than-expected U.S. job growth for March.  The Labor Department reported nonfarm payrolls grew by 126,000.  Economists…had forecast an increase of 248,000…the expected likelihood of a Fed rate increase in September dropped to 28% from 33%, according to the fed-funds futures market.”  Meanwhile, Josh Brown says “the preconditions for active management outperformance are present!”  He argues that the current outperformance of small caps over large, as well as international stocks over domestic, provide plenty of “alpha” potential.  Furthermore, “dispersion has shot up — dispersion representing the degree of standard deviation between stocks from one another.”  Also, “cash is also not as big of a drag this year as it was last year.”  “The question is, will these conditions remain present long enough for the active funds to post a (sorely needed) banner year for the industry?  It would make things a lot more interesting and could cause quite a stir here in the Index Utopia.”  Meanwhile, The Tide In Europe Is Turning Towards Active Management.  Also, Would Benjamin Graham Have Hated Index Funds?

 

USA: What Happens If My Algorithm Is Wrong?”

 

USA: [Insert Noun Here] Asian Infrastructure Bank Has Convinced Larry Summers Of One Thing!

david cameron tweet

Monetary Easing Ain’t Just For Europe And Japan

“Like clockwork, every time we have seen a weak data point in the U.S. (which has been often in 2015), another central bank comes out with a rate cut and markets rejoice…There have now been at least 25 Central Bank easing announcements in 2015.  This amounts to roughly one announcement every other trading day this year…The U.S. is passing the baton, we are told, and this endless global easing is a rising tide that lifts all economies.”  Meanwhile, John Williams doesn’t think he’ll be taking August off.  Also, Stanley Fischer says “a smooth path upward in the federal funds rate will almost certainly not be realized.”  Merrill Lynch doesn’t think you believe any of this stuff.

 

Crouching Tiger

Markit’s “composite purchasing managers index — a measure of activity in the manufacturing and services sectors — rose to 46-month high of 54.1 in March (alt) from 53.3 in February…The surveys indicated the pickup in activity is likely to be sustained, with new orders rising at the fastest pace in almost four years…Germany led the eurozone’s modest pickup in the final three months of 2014…the French economy slowed.  The eurozone economy grew at a quarter-on-quarter rate of 0.3% in [Q4], up from 0.2% in [Q3].”  Meanwhile, you can hear David Cameron mumbling “We got em right where we want em…”  Meanwhile, China is all about the democratic process (alt): “China has offered to forgo veto power at a new Beijing-led development bank…the offer proved critical in getting the U.K., France, Germany and Italy to join Beijing’s Asian Infrastructure Investment Bank…Beijing is making a sharp departure from the long-standing practice at U.S.-backed international lenders such as [the IMF, where] the U.S. has a lock on some big decisions…the Obama administration has been unable to get Congress to pass additional funding for the IMF [which gives] China an opening to recruit members to its new bank…The new bank is on track to reach its target of $100 billion in registered capital, up from the $50 billion initially announced.”  Meanwhile, China is absolutely insane: terrifying-cement-cubes-in-Chicago edition.

 

WM: Reminder: Old Age Doesn’t Kill Bull Markets

Also, “A long expansion is a persuasive argument for buying stocks even though forward P/Es are historically high.”

 

USA: Unicorn Farmers Would Like To Sell Overfed Unicorns To The Butcher; Unicorns Less Excited

Meanwhile, Twitter is looking to recapture some of its glory days.

 

WM: Embrace Ambivalence, But Don’t Go Extinct

Meanwhile, the world’s fifth-largest food supplier is almost out of water.

children bucket stream

Some People Are Uncomfortable With Living In The Moment Data Dependency

“Yellen took the April meeting off the table for the first rate increase, but insisted that a June liftoff was a very real possibility, and that no June liftoff was also a very real possibility.”  Meanwhile, “twelve of 16 U.S. primary dealers that do business directly with the Fed said on Wednesday they see a rate liftoff in September or later. Just four of those responding to a Reuters poll stuck with June as their forecast…‘It was primarily the downward shift in their outlook on growth and inflation’…Policy makers lowered their median view of U.S. growth for 2015 to 2.3 to 2.7 percent, from an outlook in December of 2.6 to 3.0 percent, while reducing their outlook on core inflation for this year to 1.3 to 1.4 percent, from 1.5 to 1.8 percent three months earlier.”  Meanwhile, David Merkel plots FOMC members’ projections for inflation, fed funds and GDP over time, and expects “the FOMC to continue to err on the side of monetary lenience.”  “Yellen’s response to a question about standard formulas or mechanical rules for monetary policy illustrated that her responses were not intended to be evasive, but rather to emphasize the complexity and uncertainty inherent in the economy, and that simple rules, while useful for thinking about how the theoretical economy functions in the long run, are impractical for conducting monetary policy in the real economy in real time.”  Also, “you cannot understand life and its mysteries as long as you try to grasp it.  Indeed, you cannot grasp it, just as you cannot walk off with a river in a bucket.  If you try to capture running water in a bucket, it is clear that you do not understand it and that you will always be disappointed, for in the bucket the water does not run.”  Meanwhile, it’s Markets 1 Fed 0 you guys.

 

JPN: “When Japan Post Goes Public, People Who Are Not Interested In Equity Markets Will Become Interested In Them”

 

What: “A 3D View Of A Chart That Predicts The Future”

Related: Multi-Informational, Trans-Dimensional Finance Cube

US vs Europe allocations Mar 2015

Chasing European Equities Foreign Currency Returns

“The EMU MSCI (in euros) is up 19.0% ytd, well ahead of the 1.5% gain in the US MSCI.  Of course, this divergence has been fueled by the 12.6% ytd plunge in the euro.  The currency is down 24% from last year’s high of $1.39 to $1.06.  In US dollars, the EMU MSCI is up only 4.1% ytd, and is actually down 6.8% y/y.  As a result, there has been a rush to Eurozone ETFs that are hedged to the euro.”  “Bullishness towards European stocks has reached uncharted territory,” says a quant at Merrill Lynch.  “19% of global asset allocators are now underweight U.S. equities — the largest share since January 2008.  Allocations to equities in Japan and particularly the eurozone, by contrast, have risen sharply and many respondents say that this might just be the start of an enduring trend as major central banks around the world continue along sharply different paths.”  Meanwhile, economists at Goldman and Wells are expecting “a cut to the Fed’s growth and inflation forecasts, which could result in the first rate increase coming after the June meeting…[they] still believe a September liftoff in rates is more likely that one in June.”  Meanwhile, Rick Rieder thinks “the application of technology as a deflationary force is nowhere more apparent than in the energy industry…production has continued to grow despite the rig count having peaked more than two years ago…limited incremental investment or working capital is required, but the yield continues to drive forward.  That’s called productive disinflation, and it’s happening in many different sectors of the economy.”

 

WM: Market Efficiency And The Infinite Regress Of “Dumb”

Meanwhile, S&P 500 funds will be forced to buy American Airlines and sell Allergan on Monday.

 

WM: Relax, DIY Robo-Tax Preparation Didn’t Kill The Tax Advice Industry Either

 

Global: “There Are No Shadow Banks, Just A Shadow Banking System”

 

WM: “Bond-Market Crashes Have Actually Been Relatively Rare And Mild” Says Shiller

 

What: 27% Of Respondents Think You Can Get Paid To Receive Insurance From Default

shadow gymnastics

You Gotta Fight For Your Right To Parity

“Over the last eight months the USD has appreciated faster on a trade-weighted basis than at any time in the last 40 years and probably over a [longer] duration…We have now matched about 2/3rds of the 1995-2002 USD rally but it took three years to get to that point in the previous rally…and now it has taken eight months.”  That being said, there are some reasons to think that maybe EURUSD parity is still a ways off: 1) “We may have moved close to the levels that some ECB Governing Council members had in mind (but could not speak publicly about), in terms of implicit Euro targets, when QE was initiated,” 2) “Our narrative around the Euro (with a focus on fixed income outflows) is starting to become very consensus,” and 3) Fed = dove.  Speaking of euro targets, Nomura has hit theirs: “The bank, which was short the euro against the dollar, is closing the trade after making a profit of 5.9% as the euro kept falling.”  Also, here’s something to consider: “At first flush, this all seems odd in the context of climbing stocks.  So far this year, the Stoxx 600 European equity index is up by about 17%…Some analysts explain this away with hedging.  ‘When euro-denominated assets rise, more euro selling is required to compensate for the higher share of euro assets in the portfolio, which in turn will drive more euro weakness’…The obvious question is when that might snap.”  Meanwhile, “US yields are torn between the gravitational pull of near zero (plus or minus) European and Japanese yields and the prospect of Fed rate hikes.”  Mohamed El-Erian expects “another round of ‘linguistic gymnastics’” from the Fed this week (press conference on Wednesday y’all), although he’d be pretty satisfied with a tumble removing the word “patient” from the statement.  Meanwhile, Can Asia Survive (Insert Thing Here)? is being used for the dollar story.

 

EU: Gazprom

“In the past year, Gazprom has begun a more drastic reassessment of its relations with Europe: in May it signed a $400bn contract to deliver gas to China and turned its focus to building new Asian markets for its gas…Nonetheless, Gazprom remains highly dependent on Europe, which accounts for more than 60 per cent of its revenues from gas sales.”

 

China: Stiffer Bank-Technology Rules Loom In China

“As China seeks to wean itself off foreign technologies, global tech companies are weighing a number of limited options: hand over proprietary information in return for market access, form joint ventures with Chinese firms, create products or services only for the Chinese market that meet Beijing’s requirements, or leave.”

 

WM: The Essence Of Smart Beta ETFs: “Once A Quarter, We Press A Button”

I wonder if their investors would say the same thing…

 

EU: Apparently Tom Is Done With Jerry

 

USA: Micro Apartments And The “Growing Population Of Singles”

 

Global: VoxEU Researchers Say Consumer Spending/Psychology At The Core Of The Business Cycle

 

ICYMI: Putin Was Missing For About 10 Days, Now He’s Back, Zero Hedge Is Totally Fine With It

weasel woodpecker

Teamwork

“After an absence of 15 years, investors briefly watched the Nasdaq Composite trade above the fabled 5,000 threshold on Monday (alt)…with many global equity benchmarks recording all-time and multiyear highs, as central banks continue pumping money into the financial system, the Nasdaq is finally approaching a peak that many investors thought would take decades to reclaim.”  Meanwhile, Gavyn Davies is capitulating to his fear of heights: “The global equity bull market, at least in the advanced economies, has been driven by two key fundamentals — a moderate but continuous recovery in real GDP and corporate earnings, and aggressively easy monetary policy.  Because the US has been at the forefront of both these phenomena, the S&P 500 has vastly out-performed the global market for 6 successive years.  Both of these key fundamental drivers are now less convincing than before.”  Furthermore, “about three-quarters of the rise in US equity prices in the past 12 months has been due to a rise in the market’s price/earnings ratio (ie ‘multiple expansion’).  This has taken market valuations into fairly expensive territory compared to long term history.”  Meanwhile, Draghi’s QE moves to the starting line as the outlook in Europe brightens: “Draghi will have an opportunity in two days to add to details of the 1.1 trillion-euro ($1.2 trillion) quantitative-easing plan…Purchases under the expanded asset-purchase program are set to start as early as this week.”  Which might explain why European debt has gone negative recently.  But people are scared: “the fundamental concern is not the specifics of the small Greek economy or the legalities of leaving the euro or the EU, but rather Europe’s continued inability to resolve its Greek tragedy…’Much of Europe is at risk of difficult economic times, and when you have difficult times and populist parties, politics becomes extremely unpredictable.’”  For example.

 

WM: Riskalyze Report: Advisors Sold Strategic/Tactical Income And Other Bond Proxies Last Week

 

USA: Walmart’s Visible Hand

Krugman says Walmart’s announcement to raise wages for half a million workers is “a very big deal, for two reasons.  First, there will be spillovers: Walmart is so big that its action will probably lead to raises for millions of workers employed by other companies.  Second, and arguably far more important, is what Walmart’s move tells us — namely, that low wages are a political choice, and we can and should choose differently.”

 

USA: Today’s $100M+ Late-State Private Rounds Are Very Different From An IPO

 

What: Uber Just Launched A Quarterly Print Magazine