The markets have been more tumultuous than usual in recent days. There were two developments that are important for investors to know about, but many likely missed. First, yesterday the U.S. reported the November budget deficit. At $56.8 bln, it was more than 10% less than economists projected. The budget shortfall in November 2013 was $135.2 bln….
Regional banks had underperformed the bigger, better-known banks last year and in the early part of this year thanks to low interest rates which led to a narrowing spread between long- and short-term rates. This hurt the net interest margin earned by banks, which a key metric for the sector. However, the end of the…
China’s central bank, like many other central banks, targets a specific level of inflation, in China’s case it is 2%. Received economic wisdom has it that a low level of annual price inflation is good for the economy and that deflation (negative inflation) can produce a drag on the economy by dampening consumer demand. Recent…
Here are the Gold-Silver ratio and Uncle Buck, riding somewhat disjointedly together. Assuming they will continue to ride together in the near term, which one is going to down correct path?
The Department of Treasury is spending $200,000 on survival kits for all of its employees who oversee the federal banking system, according to a new solicitation. As FreeBeacon reports, survival kits will be delivered to every major bank in the United States and includes a solar blanket, food bar, water-purification tablets, and dust mask (among other things). The question, obviously, is…
Sometimes my friend “Karma” plays the most interesting tricks on me, as she has done this week with this classic corporate “trust tug of war.” On Monday I wrote a blog post called CEOs “Suck” at Trust. Soon after, my friend Corey Dubrowa at Starbucks (SBUX) reminded me that not all CEOs are created equal, and…
The Men’s Wearhouse, Inc. (MW – Snapshot Report) posted its third-quarter fiscal 2014 results, wherein its adjusted earnings of 83 cents a share dropped 7.8% year over year due to higher operating expenses. Earnings also fell short of the Zacks Consensus Estimate of 87 cents. The Men’s Wearhouse, Inc – Earnings Surprise | FindTheBest Moreover, including one-time…
While on the one hand, Iceland’s decision to inch towards lifting its capital controls is a positive step, it appears what they give with one hand they are taking with another. Just as we predicted three years ago, the muddle-through has failed and there are only hard choices left and sure enough BCG’s envisioned ‘wealth tax’ appears to be rearing its…
U.S. retail spending jumped substantially more than expected last month, the Census Bureau reports: up 0.7% in November vs. the previous month. That’s well above the 0.4% consensus forecast. The profile for consumption looks even stronger on a year-over-year basis. It all adds up to a strong signal for the holiday shopping season, and one that resonates…
Many observers have proclaimed the death of OPEC. This seems to be a premature judgment, and may reflect a misunderstanding of oligopolistic practices. The decision not to cut production is not a sign of the OPEC impotence as has been argued. If OPEC would have cut output, and lost market share as a consequence, would OPEC’s…
