Saturday, May 21, 2016

Today's Headlines

  • Clock Ticks on Bull Market With No New High for Stocks in a Year. (graph) An up week in the S&P 500 Index did little to alleviate the frustration of U.S. investors who have now watched stocks go nowhere for a full year. Yes, the S&P 500 rose over the last five days, halting a three-week slide that had been the longest since January. But the rally didn’t come close to ending a 12-month fallow period that the index has spent stuck below its all-time high. The stretch is one of the longest in the history of U.S. bull markets. 
  • G-7 Warns on Weak Global Growth as Japan Bristles Over Yen. Finance chiefs from the world’s biggest developed economies meeting in Japan underscored concerns that global growth is flagging and reaffirmed a pledge not to deliberately weaken their currencies, even as Japan again warned on the yen’s surge. At the end of two days of talks, Group of Seven central bank governors and finance ministers highlighted risks from terrorism, refugee flows, political conflicts and the potential for a U.K. exit from the European Union.
  • World’s No. 2 Currency Trader Says Dollar Rebound Just the Start. The dollar’s three-week rally is just the beginning, according to Deutsche Bank AG. A slump by the greenback earlier this year has “likely run its course,” analysts at the world’s second-largest currency trader wrote in a note Friday. The bank favors buying the U.S. currency versus emerging markets -- such as China, Mexico and South Korea -- following a shakeout in speculative bets on the dollar, George Saravelos, co-head of global foreign-exchange research in London, wrote.
  • New Brazil Economic Team Downgrades Expectations for Budget. Brazil’s new economic team projects the largest budget gap before interest payments on record this year, underscoring the challenge Acting President Michel Temer will face in turning around Latin America’s biggest economy. Temer’s administration will submit legislation that would allow it to report a so-called primary budget deficit of 170.5 billion reais ($48.4 billion) this year, Finance Minister Henrique Meirelles said Friday. The budget estimate is realistic and transparent, and doesn’t include possible spending cuts and revenue increases that require congressional approval, he said.
  • Dollar Rally Is Biggest Since January as Fed Stokes Divergence. The dollar extended its biggest advance since January to a third week as traders weighed the possibility of tighter monetary policy in the U.S. against stimulus in Japan and other major economies. The U.S. currency has rallied since the minutes of the Fed’s most recent meeting prompted traders to add to bets on a June rate hike. The move was also spurred by Bank of Japan Governor Haruhiko Kuroda reiterating that he’s ready to add to stimulus if necessary. Japan used a meeting of finance chiefs from the world’s major industrialized nations to warn of the economic risks from sharp swings in the yen, even as the U.S. made clear that currency markets remain calm.
  • Sequoia Sharply Cuts Valeant(VRX) Stake, Limits Position Sizes. The Sequoia Fund, a top investor in Valeant Pharmaceuticals International Inc., told clients that it has significantly reduced its stake in the troubled drugmaker since the end of March.
Wall Street Journal: 
Zero Hedge: 

No comments: