Ever since the first major outbreaks of Euro$ #4 last year, the balance of data has tipped further and further toward the minuses. Yesterday was a big one. US income growth in 2019 is no longer growth. Not huge declines, but minus signs where, if the prior boom narrative had been valid, large plus signs should rule unchallenged. The business [...]
As noted yesterday, what’s typically behind these hopes about “green shoots” is a central bank, more often than not more than one central bank. In 2019, the Fed’s pause isn’t the only supposed dovish turn. The ECB is back at it, having canceled its rate liftoff. And the PBOC is doing things that nobody ever cares that much to truly [...]
The Chinese economy had been sailing along fairly smoothly in the aftermath of the Great Somehow Global “Recession.” While the economies of Europe and the United States seemed suspiciously subdued especially given the scale of the contraction which registered in each, EM economies appeared unbothered. Then came 2011. There were already escalating warnings coming out of 2010, but in the [...]
Europe is a total mess, no one can (honestly) argue otherwise. But that’s just Germany and France, right? PMI’s in those countries were a disaster. Those reported for the US weren’t really all that bad. Weaker, sure, hardly the obvious sinking especially when compared to German manufacturers. IHS Markit’s flash US Manufacturing Index for March 2019 was 52.5. This was [...]
Confirmation that it wasn’t a shallow Rhine and emissions regulations. Something big is going on in Europe, Germany first. And if the German economy stumbles, particularly its industrial and manufacturing sector, we can reasonably infer its cause – the entire global economy is suffering. As is standard practice, when weak data began showing up last year it was attributed to [...]
While Western markets breathed a sigh of relief that US GDP didn’t confirm the global slowdown, not yet, what was taking place over in Asia went in the other direction. There has been a sense, a wish perhaps, that if the global economy truly did hit a rough spot it would be limited to just the last three months of [...]
It infects every boardroom across the world. Big business requires decent forecasting, yet time and again it seems they are deprived of what they desperately need. Instead, even after this last decade, the world’s largest companies continue to be surprised by weakness that is far more prevalent than strength. It has been the one constant. Central bankers declare their policies [...]
Gold is on fire, but why is it on fire? When the precious metals’ price falls, Stage 2, we have a pretty good idea what that means (collateral). But when it goes the other way, reflation or fear of deflation? Stage 1 or Stage 3? If it is Stage 1 reflation based on something like the Fed’s turnaround, then we [...]
For the magic trick to work, it has to be credible. The audience has to be given something concrete upon which they will suspend their disbelief. Quantitative Easing was just such a trick, though only the public held onto any basis for success. You still hear it all the time, how QE was “money printing.” That was the trick. It [...]
These transition periods are often just this sort of whirlwind. One day the economy looks awful, the next impervious to any downside. Today, it has been the latter with the BLS providing the warm comfort of headline payrolls. For now, it won’t matter how hollow. Yesterday, completely different story. Apple got it started downhill and the ISM pushed it off [...]
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