The slump in oil prices has BP (BP) “concentrating minds on making the organisation more efficient” which means, as The FT translates, the ‘unequivocally good news’ of lower oil prices is accelerating plans for the oil giant to reduce its headcount. The Sunday Times reports, BP is to ax middle managers and freeze projects as Brian Gilvary,…
The latest U.S. payrolls report presents a challenge for the Fed. As discussed back in April (see post), U.S. labor markets are continuing to heal, suggesting that the rate “normalization” should be a serious consideration for the central bank. However the recent deterioration in commodities, especially energy, is “importing” global disinflation to the U.S. (see…
If the quadrillion dollar derivatives bubble implodes, who should be stuck with the bill? Well, if the “too big to fail” banks have their way it will be you and I. Right now, lobbyists for the big Wall Street banks are pushing really hard to include an extremely insidious provision in a bill that would…
Photo Credit: Shutterstock, Electric bulletin board of investment information. The increasing number of IPOs will be welcomed by Japan as it continues to struggle with keeping its economy afloat in 2014 Japan had some good news to share: the country has seen a record number of IPOs in 2014, up from 64 in 2013 to…
A large literature has examined the effects on employment of raising the minimum wage, with different researchers arriving at conflicting conclusions. The core reason that economists can’t answer questions like this better is that we usually can’t run controlled experiments. There is always some reason that the legislators chose to raise the minimum wage, often…
Guest Post by Jeffrey P. Snider via ContraCorner The juxtaposition could not be more fitting with all that is transpiring at this moment in economic history. On Monday, the headlines were filled with, Black Friday Fizzles as Sales Tumble 11% and ‘Black Friday’ Fades as Weekend Retail Sinks 11%. Then the “employment” report comes out and now the headlines…
Sub-Saharan Africa is a confusing place, at least to outside observers. You’ve got a dynamic startup scene alongsidewidespread poverty and hunger. You have a moon mission in the works, at the same time that most of the population lacks passable roads. Some observers believe that these development gaps can be overcome through digital technology. As the Wall…
Some interesting insights by Citi’s Matt King recapping last week’s Citigroup credit conference. … [D]espite one panellist’s suggestion that “perhaps corporate bonds were never meant to be a liquid asset class in the first place”, and universal admissions that when you buy a bond these days you have to be prepared to hold it, there…
One of Pacific Investment Management Company’s (PIMCO) elite brain trust Mohamad El-Erian coined the phrase, “the new normal” six years ago when characterizing the future returns for equity investors. Basically after all his in-depth research, analysis, modeling and magic wand he stated equity investors would need to adjust to future returns of 5% or so….
Several months ago I posted an update highlighting my dividend portfolio sector allocation. It’s always important to be aware of your portfolio allocation. At times when building out a new portfolio, or a particular sector experiences unusual strength or weakness, balances can fall out of alignment and you can be faced holding a portfolio that is…
