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.

Monday Newsline:China,Japan,Syria

China's exports dropped 18.5% in February-the most since 2009.A 7.5% increase had been anticipated.The Asian New Year may have been partly to blame.Still,the MSCI Asia Pacific index fell 0.96% on that news,plus the fact that Japanese growth was only up 0.7%,which was less than expected.Japan will raise the sales tax next month as well.*
New York copper prices dropped for the second day on concern that China demand will fall with the decline in exports.Goldman Sachs nonetheless sees Chinese stocks as desirable,since they could rise 24% from their decades low valuation.*
In the next six months,most emerging markets will be involved in political or economic problems,said Victor Shvets,a managing director at Macquarie Securities.You never have revolutions when people are happy.You start with marginal areas like Ukraine or Argentina.There is a lack of reformm and liquidity.The only way out is to enact reform.
Below a certain level of GDP growth,social problems emerge.Reform can keep the wolves at bay,Mr.Shvets told Bloomberg TV.*
Thirteen Greek Orthodox nuns from Ma'aloula,Syria have been released by the Syrian government in a deal arranged by a Lebanese general,in which about 150 women and children prisoners were freed by the Syrian authorities.The nuns had spent more than two months in captivity after being abducted from their convent.

Good Vibrations:Exxon Mobil and Tesla Motors

Even though Exxon Mobil's Q3 earnings were down 18% on the year,hurt by refining margins,the latest report was still greeted positively by Wall Street.Earnings of 7.87 billion dollars,or 1.79 a share,did beat the consensus estimate of 1.77 a share.As well,oil production rose 1.5% on the year,with liquids volumes up 5.3%.
It's better than I thought,said CNBC analyst Jim Cramer.Exxon looks good,with the production growth.It's nice to see a big dog get a good run here.*
In Monday trading,Exxon Mobil shares closed at 92.10,up 2.28,or 2.54%.The stock pays about a 2.9% dividend,and a 3 billion dollar buyback to support the share price is expected.*
Tesla Motors stock popped 8.03% in Monday trading,closing at 175.20,ahead of Tuesday's earnings report at the close of trading.Bloomberg described the stock's October results as having hit a pothole,however.It experienced a loss of 4.7 billion dollars-it's worst monthly performance since October 2010.R.W. Baird&Co. cut the stock from outperform to neutral,saying it was priced to perfection.Investors are wagering on the carmaker having tremendous future success,driving it to heights seldom seen,with the stock trading at 13.9 times sales,versus GM's 0.4 times sales.
This speculation causes the stock to be highly volatile,moving sharply at the slightest news.For example,fires that resluted from Tesla crashes on October 1 in Washington state,and in Mexico on October 18,caused the stock to crater.Tesla CEO Elon Musk himself said in an October 25 interview that the stock price we have is more than we have any right to deserve.*
Exxon Mobil(XOM),Tesla Motors(TSLA)