currencies

Imposed austerity does directly alter output and employment- for the worse. Additionally, for all practical purposes, there is universal global support for austerity as the means supporting global output and employment. So even if the euro…

European stocks rebounding amid talks of Greek government collapse, potential referendum withdrawal. ECB likely to remain on hold but signal December rate cut; US service ISM key data report today. EM focus on potential for China easing…

One challenge investors and portfolio managers is achieving diversification. Impressionistic views gained from every day experience is confirmed by a number of academic studies. Diversification in the international capital markets is…

Japan and the US, as the two largest economies with high deficits, also have the largest gross financing need, ahead of all of the euro zone periphery, Belgium and France. But they are sovereign in their currencies and have therefore not…

Market sentiment modestly improves after most Asian stocks fall ; EFSF to delay €3bln bond sale. Greek cabinet endorsed referendum plan overnight; aims to win Friday’s confidence vote. FOMC unlikely to announce further asset purchases,…

I wrote an article for Room for Debate at the New York Times on the potential for a Greek collapse to end the euro. Here are the parts I would highlight.

Greece’s decision to hold a referendum weighing on sentiment; global PMIs most softer thus far. EUR/USD has retracted half of its Oct. move in two days; Greek referendum increases disorderly default risk. US ISM manufacturing key report of…

Lots of debate out there what took the market down today. We’re not certain you can tag the first 15 S&P points on a single factor — MF Global, euro, Italy, yen intervention and strong dollar, or simple profit taking — but willing to up…

Risk aversion is taking hold again with global stocks broadly lower; dollar firmer against majors. Price action dominated in part by BoJ intervention; on the data front Chicago PMI and Canadian GDP. Norway’s central bank indicated it will…

Here are a few excerpts from Stephen Roach’s latest at Project Syndicate.