Macro Briefing: 18 September 2017

Hurricane Maria is strengthening, heading for Carribean islands: CNN
Analysts blame weak retail sales and industrial output on hurricane: Reuters
Economists trim US Q3 GDP forecasts after soft-than-expected reports: CNBC
Consumer sentiment dips in Sep. as economic concerns rise: UoM
NY Fed mfg. index in Sep. sticks close to 3-year high: MarketWatch
US companies hold a huge chunk of corp. debt market: FT
US business inventories edge higher in July: FoxBusiness
BIS says rising cryptocurrency risk too big for central banks to ignore: BBG
Nominal US GDP growth stable but still below expectations: Macro Musings

Book Bits | 16 September 2017

Windfall: How the New Energy Abundance Upends Global Politics and Strengthens America’s Power
By Meghan L. O’Sullivan
Summary via publisher (Simon & Schuster)
Windfall is the boldest profile of the world’s energy resources since Daniel Yergin’s The Quest. Harvard professor and former Washington policymaker Meghan L. O’Sullivan reveals how fears of energy scarcity have given way to the reality of energy abundance. This abundance is transforming the geo-political order and boosting American power. As a new administration focuses on raising American energy production, O’Sullivan’s Windfall describes how new energy realities have profoundly affected the world of international relations and security. New technologies led to oversupplied oil markets and an emerging natural gas glut. This did more than drive down prices. It changed the structure of markets and altered the way many countries wield power and influence.
Continue reading

Research Review | 15 September 2017 | Portfolio Management

Asset Allocation in a Low Yield Environment
John Huss (AQR Capital Mgt.), et al.
August 17, 2017
The year 2016 saw bond yields fall to unprecedented low levels in major developed markets, with nominal yields on 10-year German and Japanese government bonds even turning negative. While yields have risen off their lows in 2017, we are still in a very low rate environment. Does this demand exceptional action from investors – even those who usually maintain a strategic allocation to global bonds? We find that it does not, instead it highlights the importance of diversification across many return sources.
Continue reading

Macro Briefing: 15 September 2017

N. Korea fires second missile over Japan: NY Times
US annual consumer inflation ticks up to 1.9% in August: BLS
US jobless claims drop sharply after previous week’s rise: Bloomberg
Revised US Q3 GDP growth estimate holds steady at 3.2%:
US Consumer Comfort Index dips for second week: Bloomberg
Ross says N. Korea problem won’t stop US trade reform with China: Politico
US 2-year Treasury yield rises to highest since July: MarketWatch

Macro Briefing: 14 September 2017

Trump blocks sale of US tech company to Chinese firm, citing security: BBC
Russia’s Kasperksy Lab’s software banned from US gov’t computers: NY Times
Trump’s outreach to Democrats on tax reform is dividing GOP: Politico
US producer prices in August rise at fastest rate since January: Reuters
Another record high for the US stock market: MarketWatch
Brazil’s main stock market index hits record for 3rd session: RTT
US 2017 hurricane costs to date estimated at highest level since 2005: FT

Macro Briefing: 13 September 2017

US household incomes increased to record in 2016: WSJ
President Trump: New N. Korea sanctions are only the first step: Reuters
N. Korea vows faster development of nukes after new sanctions: Bloomberg
Global oil market demand set to rise faster than expected: CNBC
US small business optimism edges higher in Aug: MarketWatch
The era of no-retirement age is near: Telegraph
Another record high for US stocks as Treasuries prices fall: FT