News: 2014-03-25

Federal Reserve

Full Interview With Minneapolis Fed President Narayana Kocherlakota – Real Time Economics – WSJ

Fed’s Plosser: Market reaction to the Fed statement was surprising

Plosser did say he wants rates at 3% by the end of 2016. He was the outlier dot on the Fed’s forecast summary.

Williams Acknowledges Forecast Change – Tim Duy’s Fed Watch

“Those who expected Federal Reserve Chair Janet Yellen to push for a more dovish policy path continue to be dissapointed.”

Post-FOMC Fedspeak – Tim Duy’s Fed Watch

“That is the real problem here – as a group, the Fed wants qualitative discretionary policy, and the dots provide quantifiable guidance. If they want qualitative discretionary policy, they need to pull all the numbers from their communications.”



Banks hold bearish gold calls

Jeremy Grantham: The Fed is killing the recovery – The Term Sheet: Fortune’s deals blogTerm Sheet

“The money manager argues that the Fed’s interventions have ruined the very recovery it was supposed to stimulate and that the market is poised to disappoint investors.”

«Equity markets are overvalued» | Finanz und Wirtschaft

“James Montier, member of the asset allocation team at Boston-based GMO, has a hard time finding attractively valued assets these days. His advice to investors: Cash – and lots of patience. “

Box’s Accumulated Losses: $361 Million – Digits – WSJ

This shows us heading toward 1999: “Box Inc. on Monday revealed its plans for an initial public offering, and with that exposed financial numbers that show a fast-growing, but highly unprofitable startup. Box’s revenue last year more than doubled to $124.1 million for the year ended Jan. 31. But its losses also ballooned as the company tries to acquire new customers and build out its service. The loss for the year widened to $168.6 million in the fiscal year ended January, from $112.6 million the prior year. Its accumulated losses as of Jan. 31: $361 million. A big chunk of the costs are in sales and marketing — $171 million last year alone.”

Can Americans Retire in a Decade of Financial Repression? – Bloomberg

BBC News – Did Hyman Minsky find the secret behind financial crashes?



Guest post: Viktor Yanukovich – Mr 50 Per Cent | beyondbrics

“Documents found in Yanukovich’s ostentatious Mezhihirya palace, first-hand evidence from businessmen who had been corporate raided and interviews provided by business leaders all point to his long-established rule of a 50 per cent tribute in return for providing a krysha. After Yanukovich fled Ukraine, Dmytro Oliynyk , the deputy head of the executive council of the Federation of Employers of Ukraine spoke about the 50 per cent rule having become the norm ‘in recent years’.”

Stopping Russia | The Baseline Scenario

“Throwing a lot of external financial assistance at Ukraine’s government, for example with a very large loan from the International Monetary Fund, is unlikely to prove helpful. Based on recent prior experience, such lending may even prove counterproductive.”

Ukraine Battles To Rebuild a Depleted Military –

Finnish hopes for fragile growth hit by Ukraine crisis | Reuters

Merkel and Europe Search for an Adequate Response to Putin – SPIEGEL ONLINE

BBC News – Russia warns of investor flight

In new cold war, Russia can hit America where it hurts – on Iran –

Russia Imposes Travel Sanctions on Canada –

Factbox: How EU’s eastern members depend economically on Russia | Reuters

“Many of the European Union’s eastern member states will resist moves to impose wide-ranging sanctions on Russia over its intervention in Crimea, mainly because their own economies could suffer. Below are details of how some of the ex-Communist EU states are economically exposed to Russia”



Germany’s property rush is based on concrete gold –

“A property boom across the biggest cities has been dubbed a betongold – literally concrete gold – rush. In Frankfurt’s well-heeled Westend, Michael Stegerwald has been selling kitchens for two decades. Last year was his most successful yet.”

A highly imperfect banking union –

“While the ECB will not oversee every bank in the eurozone, giving Frankfurt supervisory powers over the largest banks was a good-enough second best. Europe’s banking giants will no longer be under the friendly scrutiny of national watchdogs. The hope is that the ECB will be tougher, spotting potential problems before they become unmanageable. Yet the remaining segments of the deal are deeply unsatisfactory. ” 

Los precios industriales sufren su mayor caida desde 2009

Producer prices in Spain fell 2.9% in the year to February, the worst fall since 2009.

Scottish islanders seek votes for own independence | Reuters

“Islanders from Shetland, Orkney and the Western Isles have lodged a petition with the Scottish parliament asking for a vote on Sept. 25, a week after a referendum on whether Scotland should end its ties with the United Kingdom after 307 years.”


Emerging Markets

S&P cuts Brazil credit rating in blow to Rousseff | Reuters

S&P cuts Petrobras, Eletrobas credit ratings to BBB- | Reuters

Record Argentine soy crop to pump exports despite hoarding | Reuters

Egypt court sentences 529 Morsi supporters to death –



Odds narrow on China stimulus as Q1 economy seen weakest in five years | Reuters

BBC News – China wants explanation on allegations of US spying

Strains showing for China’s indebted firms | South China Morning Post

China also has too big to fail. The companies that will fail are the ones that are not systemically important



Japan Firms Hoard Cash, Undercutting Abenomics –

A Chart That Spells Trouble for Abenomics – Japan Real Time – WSJ

Japanese debt: Still climbing –

“Buyers of a 10-year bond to be issued on April 7 will get a coupon of 0.6 per cent a year, or 0.48 per cent after tax – about one-third the headline rate of inflation.”



Mozilla, the organization behind Firefox, names Brendan Eich as its new CEO – Digits – WSJ

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