2010 Archive

  • Monthly Economic Outlook – August 2010

    Monthly Economic Outlook – August 2010

    Our outlook has no double-dip, no V-shaped recovery, no hyper-inflation in response to the Fed’s enlarged balance sheet, and no deflation in response to the Fed’s failure to increase the balance sheet even more. Instead, our outlook is for moderate, subpar growth during the second...

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  • FX Monthly – August 2010

    FX Monthly – August 2010

    The USD sell-off initiated in June kicked into overdrive shortly after our July report as the market quickly sold the greenback off to its lowest level since January. The main driver behind the weak USD argument was the strong and steady fall in US interest...

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  • Financial Markets Monthly – August 2010: Global Economy Set to Grow at More Sustainable Pace

    Financial Markets Monthly – August 2010: Global Economy Set to Grow at More Sustainable Pace

    The global economy grew at a rapid rate in early 2010 with the International Monetary Fund (IMF) calculating that GDP output increased at a faster than 5% annualized pace in the first quarter of the year. Trade volumes and global industrial production surged, and the...

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  • International Financial Outlook August 2010

    International Financial Outlook August 2010

    Signs of weaker economic growth in the US has led to a fall in the dollar and a rise in its counterparts. Notable amongst the latter has been the seeming turnaround in the fortunes of the euro. It has moved from being under 1.20 versus...

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  • International Financial Outlook July 2010

    International Financial Outlook July 2010

    Overarching themes driving global financial markets have not changed significantly in the last month but some of the intensity has faded. Renewed euro buying relative to the dollar does not mean that concerns about the risk of sovereign debt default in Europe has gone away...

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  • Financial Markets Monthly – July 2010: Risks to the Global Economy Leave Investors Cautious

    Financial Markets Monthly – July 2010: Risks to the Global Economy Leave Investors Cautious

    In the past month, financial markets have been hit with a bad case of the jitters on worries that the global economy will not be able to withstand the implementation of fiscal austerity measures in Europe and slowing growth in some emerging economies. Central bankers...

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  • Monthly Economic Outlook – July 2010

    Monthly Economic Outlook – July 2010

    The wave of disappointing economic reports this past month combined with the inability of the Administration to push additional stimulus through an election-wary Congress has reawakened fears about a double-dip. We continue to believe such fears are overblown. We remain concerned that so much stimulus...

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  • Risk Aversion Dominated Markets, S&P 500 Made New 2010 Low, Dow Closed Below 9900

    Risk Aversion Dominated Markets, S&P 500 Made New 2010 Low, Dow Closed Below 9900

    Market sentiments were hit by two pieces of data from Conference Board today. Selloff in equities was triggered in Asia by downside revision in China leading indicator that sent Shanghai Composite -4.27% lower. European stocks followed with FTSE down -3.1%, DAX down -3.33% and CAC...

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  • International Financial Outlook June 2010

    International Financial Outlook June 2010

    Financial markets continued to gyrate wildly in the past month. That said, the package of support measures from European governments has helped to calm fears of imminent default in the so-called peripheral countries in the euro zone, like Greece, Ireland, Portugal and Spain. Nevertheless, a...

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