_Economy and Finance

Inflation and deflation in this levered world coexist nearly side-by-side. - Bill Gross (1944- )

English 한국어 With the stock market heating up, there is growing concern that the long-lasting bond bubble might finally be ready to pop. As major stock indexes like the Dow and S&P 500 soar to record highs, investors are confidently leaving the safety of bonds to chase higher returns in equities. Consequently, the yield on the 10-year U.S. Treasury note has climbed past 2 percent, hitting an 11-month high. As the economy slowly recovers, this shift toward riskier assets is likely to continue. Adding to the shift, the Federal Reserve is expected to halt further stimulus measures, paving the way for long-term interest rates to climb naturally. Market strategists predict a steady rise in yields, potentially reaching 3.2 percent by 2015. This upward trend in rates could spell trouble for the housing market, as higher mortgage rates would likely slow down home buying and refinancing, ultimately squeezing the banks. Other global factors are also pushin...

Housing and Core Inflation – It’s Complicated Laura Rosner - Market Economics US Daily Spotlight | 22 Feb 2013 03:15 | Markets were risk-off on Thursday, as equity markets sold off by more than 0.6% for the second day in a row, while the 10yr Treasury closed the day at 1.98%. Data for the day were unimpressive with jobless claims for the week suggesting only modest improvement in February payroll employment, existing home sales edging marginally higher and the February Philly Fed manufacturing index falling sharply (details of the report were less negative than the headline index implied). Meanwhile, core inflation was slightly stronger than expected in the January CPI report, mainly reflecting a rebound in core goods prices, but also modestly firmer increases in housing costs.

Global inflation outlook 2013 Azusa Kato,David Tinsley,Dominique Barbet,Gizem Kara,Jacqueline Rong,Jeremy Lawson,Marcelo Carvalho,Ryutaro Kono,Xingdong Chen - Market Economics Economic Desknote Global | 14 Dec 2012 12:52 | Summary Global Outlook We expect global inflation in 2013 to remain broadly unchanged from 2012, at around 3½%. Inflation rates will vary between regions and countries, though. Although inflation should remain stable around 2% in the higher-income economies, emerging and developing economies are likely to see inflation edge up slightly, to 5.4% from 5.2% in 2012. Among the advanced economies, US inflation is likely to remain broadly stable at around 2% in 2013, while in the eurozone, we expect inflation to slow to 1.6% in 2013 from 2.5% in 2012. Among the major emerging economies, Asia ex-Japan and Latin America should see inflation inch up next year. Most notably, our forecast for Brazil suggests that inflation is likely to be much more of a headache t...

China Economic 'Facade' Starts to Show Cracks: Chanos Published: Wednesday, 18 May 2011 | 8:16 AM ET By: Jeff Cox China's economy is showing real signs of weakening, particularly in real estate, and even could tip into a recession, hedge fund manager Jim Chanos told CNBC.

ECONOMY |APRIL 5, 2011, 5:12 A.M. ET RBI's Gokarn: High Inflation Can't Be New Normal By SOURAV MISHRA, BIJOU GEORGE and SUBHADIP SIRCAR MUMBAI—India cannot risk accepting high inflation as the "new normal," nor can the central bank be a bystander, a deputy governor of the Reserve Bank of India said Tuesday.

EUROPE NEWS|APRIL 5, 2011, 5:21 A.M. ET OECD Frets Over Inflation By GABRIELE PARUSSINI PARIS—Economic growth in the world's richest countries outside disaster-stricken Japan is gaining strength, the Organization for Economic Cooperation and Development said Tuesday in an upbeat interim assessment, but warned that a rise in commodity prices may push up inflation expectations.

Related News: Economy · U.S. · Currencies · Germany Bernanke Says Fed Must Monitor Inflation ‘Extremely Closely’ By Scott Lanman and Steve Matthews - Apr 5, 2011 1:00 PM GMT+0900 Federal Reserve Chairman Ben S. Bernanke said policy makers must watch inflation “extremely closely” for evidence that rising commodity costs are having more than a temporary impact on consumer prices.

Inflation risk can hurt portfolio that plays it too safe By Matt Krantz, USA TODAY Q: Can being too safe with your investments, by putting a large chunk in savings, be in fact risky if there’s inflation? A: Being too safe can be a sure way to lose money.

MONEY |MARCH 1, 2011, 3:37 P.M. ET Bernanke: Fed Ready to Tackle Inflation if Necessary Federal Reserve Chairman Ben Bernanke said Tuesday the U.S. central bank is ready to respond as necessary to a surge in global commodity prices caused in part by unrest in the Middle East, though he said inflation expectations remain low.

Brazil talks tough on inflation, urges gov't to help Thu Jan 27, 2011 4:47pm EST Brazil's budget deficit, including debt repayments, stood at 14.4 billion reais ($8.6 billion) in November, nearly five times larger than a year earlier. JOBS, INFLATION SURGING Neil Shearing, senior emerging markets economist at Capital Economics Ltd in London, said the central bank's minutes "are unequivocally hawkish." "If there were any lingering doubts as to whether or not (the central bank) would shift priorities under the new governor, Alexandre Tombini, I think they've been well and truly banished now," Shearing said. (more)

EUROPE NEWS | JANUARY 23, 2011, 7:37 P.M. ET Global Price Fears Mount As Food, Raw Materials Soar, Europe's Central Bank Head Warns on Inflation By BRIAN BLACKSTONE And MARCUS WALKER Inflation fears—fueled by spiraling food, oil and raw material prices—are mounting around the globe, prompting the head of the European Central Bank to signal that it could raise interest rates in the future even though some countries have been weakened by the Continent's debt crisis.

Bacon prices sizzle. Consumers feel the heat. NEW YORK (CNNMoney.com) -- Bringing home the bacon is getting more expensive. Whether it's a bacon cheeseburger from a local diner or packs of bacon on grocery store shelves, you can expect to pay a higher price for your favorite cured meat until demand simmers down or more hogs are bred. ...