Markets News 

Inflation deceleration, EGP/USD appreciation, push F&B sector to benefit: Pharos Research

“As a result, the F&B sector would be among the first sectors to benefit from a steady economic recovery beyond 2019, the report added” writes Alyaa Stohy for dailynewssegypt.com. The year 2019 was particularly tough as Juhayna’s muted sales volume growth reflected the overall pressure witnessed in the F&B sector.In light of the white cheese market conditions, companies decided to branch out and enter new segments that would gradually revive growth after FY19’s weak performance. Source: dailynewssegypt.com

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News Regulators 

Fed’s Bullard says ignoring the Treasury yield curve has burned him in the past

“Asked by MarketWatch, he declined to quantify a probability of recession and acknowledged that most estimates of them are based off the yield curve” writes European Markets Editor for marketwatch.com. There are a lot of valid reasons why the inversion of the U.S. Treasury yield curve — that is, the yield of short-term bonds being higher than that of longer-term securities — isn’t a sign of economic worries.Bullard, at a conference on monetary and financial policy in London, replied that he was burned twice as a Fed staffer in the…

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News 

Poland’s ruling right-wing party banks on child subsidy to win election

“NOWA KARCZMA, Poland (Reuters) – Maria Kolsut will be thinking about her financial security when she votes for Poland’s ruling right-wing party in Sunday’s parliamentary election” writes Midwest Communications Inc for 95kqds.com. In the 2015 election, the then governing center-right Civic Platform (PO) won in Nowa Karzma’s voting district, but PiS won 54% of votes there in a European Parliament election in May. Source: 95kqds.com

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News 

Low inflation? Nothing to worry about, Fed’s George says

“In current circumstances, concern about low inflation seems unnecessary,” George said in remarks prepared for delivery to the National Association for Business Economics” writes Midwest Communications Inc for 95kqds.com. In fact, she said, hitting the Fed’s 2% inflation target spot on is difficult, in part because global factors are in large part responsible for low U.S. inflation, she said.George dissented on both of the Fed’s interest rate cuts this year, in July and September, to a current target range of 1.75% to 2.00%.DENVER (Reuters) – Kansas City Federal Reserve Bank…

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News Regulators 

What’s driving the rare simultaneous rise in gold and the dollar

“To capitalize on the rise in gold bullion, consider gold bullion ETFs that offer convertibility into physical bullion” writes Ivan Martchev for marketwatch.com. Silver and silver mining stocks are driven by the same dynamics as gold bullion, with the caveat that when gold bullion is hot, silver moves faster to the upside.The tendency of gold bullion to swing from undervalued to overvalued is what makes its comparison to the CPI index problematic.Federal Reserve rate-cutting cycles in the past have meant a lower dollar and a boom for gold bullion.Because you…

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News Regulators 

No end in sight for ECB’s inflation problem

“But this good news about the European economy helps underline the predicament the European Central Bank has long struggled with: the persistent low level of inflation” writes Senior Writer for marketwatch.com. The only way to do this would be through an external shock—well beyond the reach of the central bank.In that scenario, it would be illusory for European policy makers to hope inflation will ever reach the 2% level in the near future.The closest the ECB was to its target was last year, when inflation reached 1.8%.The ECB has constantly…

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News Oil Regulators 

People are worried that labor strife, oil shocks, and the Fed could lead to an economic disaster — here’s why they’re wrong

“Moreover, producers tend to respond more quickly, moving investment soon after an unexpected move in oil prices” writes Neil Dutta for businessinsider.com. These days, if anything, long-run inflation expectations are too low.During the 1970s oil shock, the Fed did not consider inflation expectations to be anchored, so the expectation was that actual inflation would rise with the oil-price increase.In previous cycles, the US’s position as a net energy consumer meant that an unexpected rise in oil prices translated to a tax on American businesses and consumers. Source: businessinsider.com

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News Regulators 

Fed’s Bullard, explaining dissent, says U.S. manufacturing appears ‘in recession’

“WASHINGTON (Reuters) – The U.S. manufacturing sector “already appears in recession” and overall economic growth is expected to slow “in the near horizon,” St” writes Midwest Communications Inc for 95kqds.com. “It is prudent risk management, in my view, to cut the policy rate aggressively now and then later increase it should the downside risks not materialize.”.  Source: 95kqds.com

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