Markets News 

Insurers’ risk-taking could trigger next financial crisis, IMF warns 

“Insurers pose a mounting threat to the international financial system as they pour money into risky investments to shore up profits, according to market watchdogs” writes Ben Marlow for telegraph.co.uk. There is simply too much money chasing too few yielding assets,” said Tobias Adrian, the IMF’s financial counsellor.Rising stock markets and bond prices have helped to flatter insurers’ results, but could leave them massively exposed if markets take a turn for the worse. “Market risk is rising.Insurers are making more long-term bets and buying up assets that are difficult to…

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Markets News 

FORGET BITCOIN: An $8 trillion bubble in global markets is waiting to pop

“For all the hype about bitcoin, far more investors are exposed to an $8 trillion bubble in financial markets” writes Akin Oyedele for businessinsider.com. But the Fed will have a role to play in reducing the share of government bonds that yield negative.Investors bought these bonds for their perceived safety and because some institutions like banks were required to.Investors, however, aren’t counting on rising inflation, judging by the magnitude of their investments in negative-yielding bonds.All this demand raised the bonds’ prices, pushing their yields below zero in Japan and in…

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Markets News 

The biggest problem in a market where everything is expensive

“Business Insider CEO Henry Blodget looks at President Donald Trump’s claims that he’s responsible for the record-setting stock market, and finds that the S&P 500 rose just as much over the first 11 months of Barack Obama’s second term” writes Kara Chin for businessinsider.com. Blodget also provides a bearish argument, which suggests that high valuations have historically preceded periods of market weakness.He also points out that prices are high across many different asset types, which means that diversification might not help investors out right now. Business Insider executive editor Sara…

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Markets News 

China is binging on dollar-denominated debt

“In total, emerging market governments and companies have issued $US509 billion in dollar-denominated bonds so far this year, a new record” writes Wolf Richter for businessinsider.com.au. Investors around the globe are eager to hand China their US dollars, in exchange for a somewhat higher yield.Other emerging market governments and companies have jumped on the same dollar-bandwagon.China announced today that it would sell $US2 billion in government bonds denominated in US dollars. Source: businessinsider.com.au Share This:

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GOP tax overhaul to provide growth of more than 2.6%: House budget chair

“House Budget Committee Chairwoman Diane Black told CNBC on Thursday the Republican tax reform plan should provide economic growth of 2.6 percent” writes Berkeley Lovelace Jr for cnbc.com. Chief White House economic advisor Gary Cohn has said the plan will be paid for entirely through economic growth.The GOP unveiled their blueprint for tax reform last month, calling for cutting personal and corporate tax rates and aiming to simplify the U.S. tax code.President Donald Trump has predicted his policies, including tax reform, would spur growth of 3 percent.Black said she is…

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News Stocks 

Goodyear Tire’s stock rallies after 40% dividend hike

“Goodyear’s stock has shed 8.0% over the past three months, while the S&P 500 SPX, +0.23% has gained 5.2%” writes Reporter Editor for marketwatch.com. Based on Tuesday’s closing price of $33.02, the new annual dividend rate would imply a dividend yield of 1.70%, compared with the implied yield for rival Cooper Tire & Rubber Co.GT, +0.92% rallied 2% in premarket trade Wednesday, after the tire maker announced a 40% increase in its quarterly dividend. Source: marketwatch.com Share This:

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Treasurys pare gains as Catalan tensions unwind

“Treasury prices pared their earlier gains, nonetheless pushing yields lower, on Tuesday as the Catalan president pushed for further talks with Madrid in an effort to defuse tensions” writes Sunny Oh for marketwatch.com. He suggested the recent selloff seen last Friday was overstretched, when the 10-year Treasury yield threatened to break past key psychological level of 2.40%.The two-year Treasury note yield TMUBMUSD02Y, +1.64% was down to 1.508% from 1.511%, while the 30-year Treasury bond yield TMUBMUSD30Y, +0.06% fell to 2.880% from 2.907%, snapping a five-day streak of yield gains. Source: marketwatch.com…

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News Stocks 

Stocks fade from records; S&P 500 breaks winning streak

“The government’s jobs report showed that employers cut more jobs last month than they added, the first time that’s happened in seven years” reports foxbusiness.com. The two-year Treasury yield climbed to 1.52 percent from 1.49 percent, and the 30-year yield rose to 2.91 percent from 2.89 percent.Roughly nine stocks fell for every five that rose on the New York Stock Exchange.Telecom stocks in the S&P 500 fell 2 percent, the largest drop among the 11 sectors that make up the index.Much of the day’s action was centered on the government’s…

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