The very weak US Employment data from Friday is being used as a reason to expect QE3 to be announced at the next FOMC meeting June 20th. Tonight’s Fed Beige Book will give us a better idea of the economic data that the Fed will be seeing, but yesterday two Fed governors , Bullard and […]
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 […]
What is Platinum telling us?
Being that I am lucky enough to continually follow the metals markets I thought I would share this chart. I have alluded to it before. It is the ratio of Platinum to Gold versus the S&P 500. Let me point out that Platinum industrial uses have grown dramatically over the past century and supply is […]
Is there any market safe?
The failing of The Netherlands’ Budget talks looks likely to lead to a collapse of the Dutch coalition government. It has led to Moody’s stating that there is a threat to the Dutch Aaa rating. Whilst there is a threat if a new Dutch government went on a wild spending spree, it is not the […]