News Regulators 

Yield curve flattens further on growing expectation for Fed to raise rates

“The 10-year German bond yield TMBMKDE-10Y, -0.60% was barely changed at 0.310%” writes Sunny Oh for marketwatch.com. The 10-year French bond yield TMBMKFR-10Y, -1.49% edged higher a basis point to 0.644%.The 30-year bond yield TMUBMUSD30Y, -0.63%  added 2.8 basis points to 2.710%.Holders of U.S. government paper watch European interest rates closely as they tend to move in lockstep with U.S. rates, with some analysts saying that low European yields have kept a lid on Treasury rates.The 2-year note yield TMUBMUSD02Y, +2.07%  rose 2.4 basis points to 1.811%. Source: marketwatch.com Share This:

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Capita sees 2017 in line; bids won’t add to profit

“Capita PLC (CPI.LN) said Thursday that its performance in 2017 has been in line with its expectations and that it anticipates underlying pretax profit to rise modestly in the second half” writes Adria Calatayud for marketwatch.com. Underlying performance across all Capita’s divisions met expectations, despite challenging market conditions, the company added.The value of Capita’s bid pipeline is currently GBP2.5 billion, but these bids are unlikely to be profit accretive in 2018 if successful, the company said.The company said its restructuring program is expected to have a cumulative benefit of GBP57…

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Profit rises for Spain’s Inditex on sales growth

“Spain’s Inditex SA (ITX.MC) said Wednesday that its nine-month net profit rose 6.2%, driven by sales growth nearing 10%” writes Alberto Delclaux for marketwatch.com. Net profit for February to October totaled 2.34 billion euros ($2.75 billion) compared with EUR2.21 billion in the equivalent period a year earlier, while sales increased 9.5% to EUR17.96 billion.This means that the company opened 99 stores in the third quarter–including its first ones in Belarus–missing Deutsche Bank analysts’ expectations of 131 net openings. Source: marketwatch.com Share This:

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Chinese Bank Lending Hits Record On Corporate Finance Demand

“While demand for corporate lending has increased, analysts are also increasingly worried about rising bad corporate debt levels in China” reports pymnts.com. That figure surpassed analysts’ expectations, especially considering China’s efforts to reduce risk tied to a surge in corporate debt.Demand for corporate finance helped propel China’s banks to new lending records in November, according to news from Reuters on Monday (Dec. 11).Chinese banks provided $169.27 billion in new loans during the month, the publication said, citing data from the People’s Bank of China. Source: pymnts.com Share This:

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Germany Dec ZEW current situation 89.3 vs 88.7 exp

“Better current vs soggier expectations” reports forexlive.com. This survey summarizes the net percentage of positive and negative responses regarding the expectations for economic growth in the next 6 months, as given by financial analysts from banks, insurance companies and large industrial enterprises.E.G. if 50% believe that the economic situation will improve and 20% believe it will get worse, the result will be +30. Source: forexlive.com Share This:

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Jobs report crushes expectations as hurricane impact fades

“Restaurants and bars, which bore the brunt of the hurricane impact, added 18,900 jobs last month” writes Finanzen Net Gmbh for businessinsider.com. Some structural forces, including changes in the labor-force makeup between high-income and low-income earners and lower labor-market turnover, are likely keeping wage growth slow.The manufacturing sector added 31,000 jobs, while its unemployment rate fell to a record-low 2.6%.Economists had forecast that nonfarm payrolls increased by 195,000 on net with the unemployment rate unchanged at 4.1%, according to Bloomberg. Source: businessinsider.com Share This:

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Markets News Regulators 

Economy beat expectations with 228,000 new jobs, unemployment held at 4.1 percent in November

“The economy added 228,000 new payroll jobs and unemployment held at 4.1 percent in November, the Bureau of Labor Statistics reported Friday” writes Joseph Lawler for washingtonexaminer.com. As for whether the labor market really is as healthy as it could be, an underlying question regarding is whether labor force participation could improve.Job growth has remained strong even though the unemployment rate is already lower than Federal Reserve officials projected in September it would go after the economy reached full employment.President Trump has justified the tax cut as needed to continue…

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One of the biggest indicators of an economic downturn might not be predicting one this time

“The U.S. Treasury yield curve has flattened for much of 2017, and spreads between long and short maturities recently narrowed to decade lows” writes Richard Turnill for businessinsider.com. The short end of the curve is mainly tied to market expectations for Federal Reserve (Fed) policy rates.Our BlackRock Growth GPS points to steady and above-trend developed market growth of around 2%.The flatter yield curve is not a recessionary signal, so what is it telling us?. Much of this year’s earlier yield curve flattening represented a reversal of the 2016 steepening that accompanied surging…

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Markets News Oil 

Oil rises to new two-year high

“Ultimately, the degree of Russia’s involvement in an extension of producer cuts will be paramount in guiding oil market expectations forward.”” reports foxbusiness.com. Disruptions to oil supply from the Keystone pipeline have also pushed prices higher.Market sentiment has vastly improved since oil fell into a bear market earlier this year, as signs of reduced supply have pushed prices to two-year highs.Oil prices rose for the third session in a row Friday, as falling stockpiles and expectations for extended supply cuts boosted optimism in the market. Source: foxbusiness.com Share This:

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