Deflation is the scariest word! The FOMC statement last night managed somehow to avoid saying what surely should be what is on every member of the FOMCs’ lips- DEFLATION. The recent Federal Reserve Bank regional surveys have shown that inflation is falling and quickly, and the recent Business surveys from ISM in the US have […]
Dramatic moves in commodities — FIU
Taking stock of what has happened. The last week has seen dramatic moves in commodities and none more so than in Gold. There is lots of speculation as to what has caused this selling of commodities but the simple matter of fact is that there were more sellers than buyers at the levels of last […]
Making sense of all that is driving the financial markets is certainly not easy at the moment — FIU
The equity markets “Christmas” rally has been fuelled by the expectation of a deal to avert the US fiscal cliff and the imminent release of the next tranche of financial loans to Greece. Both of which to me seem little to cheer about. There should be a deal between the Republicans and the Democrats to […]
The Deflation risk continues to grow — FIU
The Deflation risk continues to grow. Yesterday’s Richmond Federal Reserve Manufacturing Survey was weaker than the market consensus, and similarly to the Phili Fed survey I highlighted last week, will begin to worry the FOMC that deflation is coming back to worry the Manufacturing Industries. We are back into territory that has triggered further monetary […]
The decline in Commodities opens the window for deflation
The decline in Commodities opens the window for deflation.- so US 10yr yields look cheap at 1.82%! The sell-off in commodities started in Asia yesterday after the US had marched the complex higher on Friday on optimism that the weak US employment report could stir the Fed into QE3. Steep falls with Copper down near […]