Friday, April 29, 2016
Tuesday, April 26, 2016
Monday, April 25, 2016
Fed Banker Sympathetic to Savers
One of this week's economic highlights is the Federal Reserve Open Market Committee meeting on Tuesday and Wednesday to decide on whether to raise interest rates.*
I think that we are going to see an inflation increase going forward,said James Bullard,President of the Federal Reserve Bank of St.Louis and an FOMC member.There's been a longtime disconnect between what the market thinks the Fed is going to do and what it actually does,Mr.Bullard cautioned.I'm not sure why we have to have this constant disconnect.Not only have we moved at meetings;we've also moved at inter-meetings.We reserve the right to move at any time.*
I felt that quantitative easing was pretty effective in the US.If we had to go back to that tool,I think we could do it.I feel that our toolbox is not nearly as empty as some seem to describe it.*
I think we should be able to tolerate mild overshoot:2.2 inflation is probably better than 1.5.I do think that it's a tragedy of sorts that we talk about borrowers and forget about savers.We want to do better in terms of equilibrium in the market instead of always borrowing from the future,Mr.Bullard told Bloomberg Radio.*
The Wall Street consensus is,the Fed won't raise rates at this meeting.
I think that we are going to see an inflation increase going forward,said James Bullard,President of the Federal Reserve Bank of St.Louis and an FOMC member.There's been a longtime disconnect between what the market thinks the Fed is going to do and what it actually does,Mr.Bullard cautioned.I'm not sure why we have to have this constant disconnect.Not only have we moved at meetings;we've also moved at inter-meetings.We reserve the right to move at any time.*
I felt that quantitative easing was pretty effective in the US.If we had to go back to that tool,I think we could do it.I feel that our toolbox is not nearly as empty as some seem to describe it.*
I think we should be able to tolerate mild overshoot:2.2 inflation is probably better than 1.5.I do think that it's a tragedy of sorts that we talk about borrowers and forget about savers.We want to do better in terms of equilibrium in the market instead of always borrowing from the future,Mr.Bullard told Bloomberg Radio.*
The Wall Street consensus is,the Fed won't raise rates at this meeting.
Friday, April 22, 2016
Tuesday, April 19, 2016
Monday, April 18, 2016
Orion Progress:Engine Section Hardware Completed for First Flight of NASA's SLS Rocket
Welding Wonder Completes Hardware for First Flight of NASA's SLS Rocket: Flight hardware for the core stage of the world's most powerful rocket, NASA's Space Launch System, finishes final welding and is moved off the 170-foot-tall Vertical Assembly Center at the agency's Michoud Assembly Facility in New Orleans.
Citi's Global and US Economic Forecasts - what the risks are
In late February,Citigroup issued its global economic outlook.It cut its global expansion forecast from 2.7% to 2.5%.Global prospects are worsening further,with deterioration across advanced economies alongside previous weakness in the emerging markets,Citi's research note said.Britain's upcoming vote on whether to leave the eurozone is a key extra near term global risk that would hurt both the UK and EU economies;while more policy easing from the European Central Bank and Bank of Japan will provide only limited stimulus.*
On 15 April,Citi released its US forecast.Our US outlook has little potential to be surprised on the upside,but the risks are very evident on the downside,said William Lee,head of North American Economics.Risk is from looming uncertainty as to when the Fed will make rate hikes,as well as many important political events here and abroad scheduled in the next few months.Recently reviewed and incoming data imply GDP will grow by 0.9% in Q1 and 1.7% for the year.
Despite such tepid growth prospects,we project a slow decline in the unemployment rate to 4.6% by end-2016,and 4.5% by end-2017.We continue to believe there will be only one rate increase this year-likely in September-unless developments stir financial markets and/or dampen further growth prospects.In that event,December or a later meeting would be a more likely date for an increase,Mr.Lee noted.*
Citigroup (C)
On 15 April,Citi released its US forecast.Our US outlook has little potential to be surprised on the upside,but the risks are very evident on the downside,said William Lee,head of North American Economics.Risk is from looming uncertainty as to when the Fed will make rate hikes,as well as many important political events here and abroad scheduled in the next few months.Recently reviewed and incoming data imply GDP will grow by 0.9% in Q1 and 1.7% for the year.
Despite such tepid growth prospects,we project a slow decline in the unemployment rate to 4.6% by end-2016,and 4.5% by end-2017.We continue to believe there will be only one rate increase this year-likely in September-unless developments stir financial markets and/or dampen further growth prospects.In that event,December or a later meeting would be a more likely date for an increase,Mr.Lee noted.*
Citigroup (C)
Saturday, April 16, 2016
Friday, April 15, 2016
Wednesday, April 13, 2016
Tuesday, April 12, 2016
Monday, April 11, 2016
Analysts Pessimistic About Q1 Earnings - where investors should look now
Wall Street analysts are not hopeful about Q1 earnings season,which began,in accordance with tradition,with Alcoa's report after the closing bell.It is supposed to be the worst earnings season since the financial crisis.They foresee a 10% drop in Q1 profit.Despair is unwarranted,however..By Q3,the Street expects a rebound into earnings growth;and,by Q4,it predicts a return to profit growth.*
Scott Wren,Senior Equity Strategist and Managing Director at Wells Fargo Advisors,recommends leaning into those cyclical sectors that have fared best since the February low:consumer discretionary;industrials;and technology.*
Alcoa reported earnings per share of 0.07 per share versus the estimate of 0.02,a significant beat.This success was tempered,though,by their revenue of 4.95 billion versus an estimate of 5.2 billion,a slight miss.The ambiguity may be ascribed to the steep decline in aluminium prices.*
Also reporting this week will be money center banks JP Morgan Chase,Citigroup and Bank of America/Merrill Lynch.*
Alcoa (AA),iShares Global Consumer Discretionary ETF (RXI)
Scott Wren,Senior Equity Strategist and Managing Director at Wells Fargo Advisors,recommends leaning into those cyclical sectors that have fared best since the February low:consumer discretionary;industrials;and technology.*
Alcoa reported earnings per share of 0.07 per share versus the estimate of 0.02,a significant beat.This success was tempered,though,by their revenue of 4.95 billion versus an estimate of 5.2 billion,a slight miss.The ambiguity may be ascribed to the steep decline in aluminium prices.*
Also reporting this week will be money center banks JP Morgan Chase,Citigroup and Bank of America/Merrill Lynch.*
Alcoa (AA),iShares Global Consumer Discretionary ETF (RXI)
Friday, April 8, 2016
Thursday, April 7, 2016
Wednesday, April 6, 2016
Statement from Pentagon Press Secretary Peter Cook on Airstrike in Som
Statement from Pentagon Press Secretary Peter Cook on Airstrike in Som: In cooperation with the Federal Government of Somalia, on Thursday, March 31, the U.S. military conducted an airstrike in Somalia against Hassan Ali Dhoore, a senior leader of al-Shabaab, who is part
Tuesday, April 5, 2016
Monday, April 4, 2016
Sharp Electronics' New Parent:Hon Hai/Foxconn Technology
Taiwan-based Hon Hai/Foxconn Technology Group has purchased a controlling stake in Japan's Sharp Electronics for 2.5 billion dollars.Foxconn transferred a deposit of 100 billion Japanese yen to Sharp on 31 March.
Foxconn is the world's largest electronics outsourcing firm,manufacturing the likes of the iPad,iPhone,Kindle,PlayStation 4,Xbox One and NokiaFounded by Terry Gou (pronounced "Gwa"),it is the third largest technology company in the world by revenue.With factories that can range to gargantuan proportions in Asia,Brazil,Europe and Mexico,its more than one million workers produce 40% of all consumer electronics.The group's revenue derives mainly from manufacturing services in connection with handset production.*
Foxconn,a Fortune Global 500 firm,is the largest exporter in Greater China and the second largest in the Czech Republic.Hon Hai Precison Instrument Co Ltd of New Taipei,Taiwan is the anchor company of Hon Hai/Foxconn Technology Group.Foxconn says it is the most dependable partner for joint design,joint development,manufacturing,assembly and after-sales services to global Computer,Communications and Consumer Electronics (3C) leaders.It has over 55,000 patents in fields such as nanotech;wireless network;environmental protection;optical plating technique;precision/nano processing;and network CMOS chips.It also provides end-to-end services such as its logistic and e-supplying system adopted for global supply chain management;computer software development and programming;and sales channel solutions.*
Sharp was founded as a mechanical pencil maker,but today is the fourth largest manufacturer of LED screens.Explaining his purchase,Mr.Gou said he has deep respect for Sharp's innovation and leadership.In acuiring Sharp,he has added a creator of products to a firm known for executing the designs of others.
Although at times questions have been raised about its treatment of workers and there have been some suicides by its workers,Foxconn says it is committed to continual education,investing in people long-term and localization globally.It is a penny stock trading under the name FIH Mobile and had a dividend yield of 2.42% as of close of trade Monday.*
FIH Mobile Ltd (OTC:FXCNF),Sharp Corp ADR (OTC:SHCAY)
Foxconn is the world's largest electronics outsourcing firm,manufacturing the likes of the iPad,iPhone,Kindle,PlayStation 4,Xbox One and NokiaFounded by Terry Gou (pronounced "Gwa"),it is the third largest technology company in the world by revenue.With factories that can range to gargantuan proportions in Asia,Brazil,Europe and Mexico,its more than one million workers produce 40% of all consumer electronics.The group's revenue derives mainly from manufacturing services in connection with handset production.*
Foxconn,a Fortune Global 500 firm,is the largest exporter in Greater China and the second largest in the Czech Republic.Hon Hai Precison Instrument Co Ltd of New Taipei,Taiwan is the anchor company of Hon Hai/Foxconn Technology Group.Foxconn says it is the most dependable partner for joint design,joint development,manufacturing,assembly and after-sales services to global Computer,Communications and Consumer Electronics (3C) leaders.It has over 55,000 patents in fields such as nanotech;wireless network;environmental protection;optical plating technique;precision/nano processing;and network CMOS chips.It also provides end-to-end services such as its logistic and e-supplying system adopted for global supply chain management;computer software development and programming;and sales channel solutions.*
Sharp was founded as a mechanical pencil maker,but today is the fourth largest manufacturer of LED screens.Explaining his purchase,Mr.Gou said he has deep respect for Sharp's innovation and leadership.In acuiring Sharp,he has added a creator of products to a firm known for executing the designs of others.
Although at times questions have been raised about its treatment of workers and there have been some suicides by its workers,Foxconn says it is committed to continual education,investing in people long-term and localization globally.It is a penny stock trading under the name FIH Mobile and had a dividend yield of 2.42% as of close of trade Monday.*
FIH Mobile Ltd (OTC:FXCNF),Sharp Corp ADR (OTC:SHCAY)
Saturday, April 2, 2016
Friday, April 1, 2016
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