Lest I forget – Reading Links

Moody’s downgraded France’ credit rating from Aa2 to Aa1.

S&P downgraded Japan two days earlier on September 16

Japan’s Parliament approved overseas military expansion

Indonesia decided to abandon its high-speed rail project. Sensible decision. Something for India to think about.

Oops! I wrote that last one too early. It is back on track!

Is Saudi Arabian Sovereign Wealth Fund history? Curtailment of Saudi finances for overseas causes (hint, hint) cannot be bad news at all.

Widening bond spreads cannot be good news for the economy and for stocks in the US; if so, for stocks everywhere. Junk bond yields crossed 8% in the U.S.

China’s industrial profits declined 8.8% y/y in August. Biggest since 2011. Not news to me. News is that they had a stock bubble going without any support from corporate bottomline.

Deutsche Bank reports that liquidity in currency trades is drying up. Not good news either.

The dark side of globalisation – weaponisation of everything.

Harvard Endowment’s Annual Report for 2015 warns of potentially frothy conditions in illiquid markets.

Janet Yellen, Fed Chairpeson, went to my Alma Mater, the University of Massachusetts, Amherst, and warned that rates cannot go much below zero (?!). Also, said that keeping rates for too long below zero could endanger financial stability. Too late. The horse fled the barn a while ago.

The Chicago Fed National Activity Index fell very sharply in August. What gives?

Labour vs. Capital. Time for the pendulum to swing in the other direction? We are going to hear a lot more of this in coming years.

Finally, the haze in Singapore shows no signs of leaving.


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