Faber News Flow

Charting the World Economy: The U.S. Jobs Market Is On Fire - Bloomberg https://www.bloomberg.com/news/articles/2019-12-06/charting-the-world-economy-the-u-s-jobs-market-is-on-fire Charting the World Economy: The U.S. Jobs Market Is On Fire Zoe Schneeweiss Explore what's moving the global economy in the new season of the Stephanomics podcast. Subscribe via  Apple Podcast , Spotify or  Pocket Cast . The last U.S. payrolls report of the decade was a doozy, beating expectations and doing its bit to keep the consumer in good health heading into 2020. That's good news given the various pressures still weighing on global growth. Here's some of the charts that appeared on Bloomberg this week, offering a pictorial insight into the latest developments in the global economy. U.S. Advertisement Scroll to continue with content

The House Financial Services Committee has released   its memorandum   outlining the topics that will be raised in its hearing tomorrow with Federal bank regulators, which will include Randal Quarles, Vice Chairman of Supervision at the Federal Reserve. Noticeably absent from the list of topics is what legislative authority the Federal Reserve has that gives it the legal power to be pumping out hundreds of billions of dollars each week in revolving loans to the   trading houses of Wall Street. Since September 17, the Federal Reserve has allowed its New York Fed branch to funnel approximately $3 trillion to unnamed trading houses on Wall Street, much of it at interest rates of less than 2 percent while the behemoth banks that own those trading houses charge their mom and pop credit card customers 17 percent on their credit cards. This looks like more of what Senator Bernie Sanders calls "socialism for the rich, and rugged, you're-on-your-own individualism for everyone else.&quo

While the last few weeks have seen endless headlines that "a trade deal is close" which, thanks to headline-scanning algos has ignited an endless short-squeeze to lift stocks to record highs, the last two days have seen a very sudden and very dramatic plunge in stocks on the heels of some less-than-positive trade-deal comments. This has plunged the market's odds of a deal notably... Source: Bloomberg But,  the velocity of the collapse in stocks has many wondering what else is going on.   The answer, as Nomura's Charlie McElligott explains below is simple - what forced self-reinforcing buying pressure on the way up is about to feed a vicious cycle of selling on the way down as stocks face an imminent "gamma flip." As we warned earlier today: zerohedge @zerohedge 3100 is critical: this is the massive gamma wall. All downhill from there 89 2:06 PM - Dec 3, 2019 Twitter Ads info and privacy 58 people are talking about this And McEligott explains: The interpreta

For the past three decades, one of the most frequently asked questions in finance is 'what has been behind the relentless bull market in treasuries' (and collapsing interest rates), which have in turn helped push global stocks to never before seen highs amid a bull market that started in the early 1980s and has grown at what appears to be an exponential pace. The main reason for this confusion has been the majority's strict adherence to the textbook view that the world is cyclical and mean reverting and, thus, declining yields now must surely mean rising  yields later on. Others, such as Rabobank's Jan Lambregts in contrast, have believed that the forces which have been bearing down on yields are, in actual fact, structural in nature which has not only challenged the mean-reversion investment strategy but also thrown a spanner in the works in terms of cycle-based economic theory. And crucially, as Lambregts writes in his 2020 preview,  policymakers' attempts to prov