Global Macro Perspectives
The most broad measure of money supply – M2 rose 17.5% y-o-y in April vs. 18.1% rise in March.
Chinese banks issued CNY 682 billion of new loans in April vs. CNY 1,010 billion in March and consensus of CNY 780 billion. New loan issuance first four months this year is 4.9% higher than in first four months 2011.
As expected, a non-event.
Statement wording mostly unchanged, federal funds rates at exceptionally low levels at least through late 2014.
A full statement with changes tracked bellow.
Statement wording unchanged, federal funds rates at exceptionally low levels at least through late 2014.
Jim O’Neill, chairman of Goldman Sachs Asset Management, talks about the growth outlook for China and the impact on the global economy. (Source: Bloomberg)
Merry Christmas and Happy New Year!
Tainted Alpha returns in 2012. Hope you all have nice holidays!
Pending home sales rose 10.4% in October vs. 4.6% fall in October. On year level, the index is up 9.1%.
So, the basis of the agreement is a 50% cut in the face value of Greek bonds held by private creditors. The agreement will reduce Greek debt level to 120% of GDP by 2020.
CNBC: ECRI’s Lakshman Achuthan: We Are Moving Into Recession
Actions as expected: operation twist has started. The committee has described the economic condition much more negatively then expected.
Empire State Manufacturing General Business Conditions Index for June came out at -8.8 vs. -4.0 consensus and prior reading of -7.7.
U.S. industrial production rose 0.2% in August. Consensus was at 0.0%, July reading was at 0.9%. On year level industrial production is up 3.3%.
In short – A big nothing
Two years have passed.
Most important sentence: “The Committee currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013.” Economic growth so far this year has been considerably slower than the Committee had expected.
Three dissenters!!!
I’m on vacation, so the posting will be sporadic in next two weeks.
Initial jobless claims in the U.S. were reported at 429.000 vs. 415.000 consensus and last week revised (up 6.000) reading of 420.000.