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Inflation Risks Start to Hit Pockets of Global Bond Market

Inflation Risks Start to Hit Pockets of Global Bond Market

(Bloomberg) — Parts of bond markets around the world have started to signal that inflation risks will linger in the longer term, even as few expect prices to jump right away.

Unprecedented stimulus to cushion the global economy from the pandemic and signs that central bank independence is eroding worldwide have kept inflation concerns alive. That’s showing up as one factor in credit markets, where longer-dated bonds that are more sensitive to inflation expectations have lagged in recent months, reversing earlier outperformance.



Tough Days


© Bloomberg
Tough Days

In the U.S., investment-grade corporate notes due in more than 10 years underperformed short bonds last month after posting the most losses among all maturities in August, according to Bloomberg Barclays indexes. And in the options market, the cost to hedge against inflation rising over 2% in the next five years has more than doubled since February. In Asia, dollar-denominated company securities with over 10 years to maturity were the worst-performing group for the two months through September.

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Read about study that found signs of eroding central bank independence

That’s even though the sustained economic recovery that was going to usher in a new age of rising prices no longer looks like a sure thing as the pandemic drags on. Some popular trades betting on inflation that had done well over the summer have started to come undone, with growth stocks dropping and gold’s rally faltering. But for credit investors looking further along the horizon, a growing group sees eventual economic recovery gradually rekindling price increases.

“We think the worst of prices declines are over — some of the coronavirus shock-related disruption now has eased as economies start to reopen,” said Sylvia Sheng, global multi-asset strategist at JPMorgan Asset Management, who expects a risk of high inflation in the next three to

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Soft Start Likely For Hong Kong Stock Market

Soft Start Likely For Hong Kong Stock Market

(RTTNews) – Ahead of Tuesday’s unscheduled day off due to Typhoon Nangka, the Hong Kong stock market had ended the two-day slide in which it had fallen more than 120 points or 0.5 percent. The Hang Seng Index now rests just beneath the 24,650-point plateau and it may open in the red again on Wednesday.

The global forecast for the Asian markets is soft on profit taking and on concerns for a COVID-19 vaccine. The European and U.S. markets were down and the Asian bourses figure to follow suit.

The Hang Seng finished sharply higher on Monday following gains from the financials, properties and insurance companies.

For the day, the index surged 530.55 points or 2.20 percent to finish at 24,649.68 after trading between 24,196.80 and 24,702.81.

Among the actives, Xiaomi Corporation skyrocketed 8.35 percent, while WuXi Biologics surged 5.82 percent, Industrial and Commercial Bank soared 5.74 percent, CITIC spiked 3.17 percent, China Resources Land accelerated 2.91 percent, China Mengniu Dairy rallied 2.54 percent, Alibaba jumped 2.03 percent, BOC Hong Kong collected 1.88 percent, Ping An Insurance climbed 1.79 percent, China Mobile gathered 1.70 percent, Hengan International tumbled 1.60 percent, Power Assets perked 1.46 percent, China Life Insurance advanced 1.45 percent, New World Development added 1.31 percent, China Petroleum and Chemical (Sinopec) gained 1.26 percent, CSPC Pharmaceutical and Wharf Real Estate both rose 1.15 percent, Hong Kong & China Gas increased 0.89 percent, Techtronic Industries improved 0.75 percent, AAC technologies lost 0.45 percent, Galaxy Entertainment fell 0.38 percent, WH Group was up 0.16 percent, CNOOC eased 0.13 percent and Sands China was unchanged.

The lead from Wall Street is negative as stocks opened lower and largely remained that way, finishing in the red after three straight sessions of gains.

The Dow sank 157.71 points or 0.55 percent to finish at

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Funding Enterprise Ideas (No Inventory Needed To Start)

Funding Enterprise Ideas (No Inventory Needed To Start)

Business news,Business daily,Business ideas,Business insider,Business letter,Business line,Business plan,Business proposal,Business times,Business world,Online businessIrrespective of how rewarding your full-time job could also be, discovering the proper side enterprise ideas and eventually turning into totally self-employed is much more meaningful than great pay and strong benefits. They overeached, caught a bunch of sites that had been apparently NOT concerned in baby porn, and then defended it by blanketing themselves with the all-trumping “for the youngsters” protection. Should you’re an internet site or blog owner, you can promote a portion of your page house to advertisers and earn cash passively every time the adverts are clicked on by your audience or guests to your web site.

The concept of digital assistant services as an internet enterprise has risen in recognition lately due to a sturdy economy and evolving technological times. Start your sales education with the acclaimed books, Secrets of a Master Closer  and To Promote is Human by famed bestselling writer Daniel Pink and you’ll be nicely in your solution to getting this facet business idea off the bottom.

By focusing on the place your skills are, and what type of factor you take pleasure in doing, you’ll be able to provide you with great business ideas that actually play to your strengths. Internet online affiliate marketing is unquestionably one of those enterprise concepts with low investment wanted to show a profit. Anybody can provide you with, develop, and enhance business concepts. There’s an enormous rising marketplace for mobile phone accessories, and loads of handmade sellers are raking in 6 and sometimes 7 figures from their phone case businesses.

They key to this enterprise is constructing your e mail checklist and social media contacts so which are capable of build up an everyday clientele with out having to own a storefront or spend cash for promoting. And when consultants are requested if this … Read the rest

Bank/Financial Earnings Releases Start This Week. All Eyes On Consumer Credit

Bank/Financial Earnings Releases Start This Week. All Eyes On Consumer Credit

JPMorgan (NYSE:JPM) reports its Q3 ’20 financial results on Tuesday morning, October 13th, 2020, followed up by Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC) on Wednesday. Goldman Sachs (NYSE:GS) also reports Wednesday morning, while Charles Schwab (NYSE:SCHW) reports Thursday morning before the opening bell.

All in, I have 15-20 banks and financial names reporting this week, which should give bank investors a good look at credit losses, net interest margin compression, and (possibly) the first look at the guidance for 2021, although without stock buybacks, there may be no willingness to give guidance to investors.

For the Schwabs, BlackRocks (NYSE:BLK) and names like Goldman and Morgan Stanley (NYSE:MS), we get to see how further credit market improvements over the third quarter aided bond issuance, and how the robust capital market activity aided the capital-market-sensitive returns for the big banks.

Ed Yardeni (cut and pasted from his blog) starts us off with his view of what’s expected for credit:

“Financials: Reality Check Coming. Financials has been one of the S&P 500’s worst-performing sectors this year, battered by a flat yield curve, surging loan losses, and a regulator that’s prohibiting the payment of dividends and stock buybacks. Next week, as banks’ Q3 earnings start rolling in, we’ll get a better feel for how well banks are reserved for loan losses. Many set aside billions of dollars for losses in Q2 as Covid-19 descended. Given the poor performance of bank stocks, investors may already have priced in banks’ need to continue building reserves in Q3.

The S&P 500 Financials sector’s stock price index has barely rebounded from the market’s March selloff, while the S&P 500 Technology and Consumer Discretionary sectors have hit new highs. Here’s the performance derby for the S&P 500 and its sectors ytd through Tuesday’s close: Information Technology

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EM Investors Start to Put Vote Jitters Behind Them

EM Investors Start to Put Vote Jitters Behind Them

(Bloomberg) — Emerging-market investors are beginning to factor in a victory for Joe Biden in next month’s election, a likely boon for stocks and bonds.

Citigroup said the worst is over for developing-nation assets and Morgan Stanley is betting volatility will ease as there’s more clarity on the outcome of the vote. On Friday, Biden’s chances of winning the Electoral College rose to a record 85.1%, according to the latest run of poll aggregator FiveThirtyEight’s election forecasting model.

“A Biden victory should be good news for emerging markets if it means a multilateral approach, a more rules-based approach to international relations,” said Marcelo Carvalho, head of global emerging markets research at BNP Paribas in London. “That should reduce policy uncertainty.”



graphical user interface, chart: Emerging-market bonds, stocks rise as Biden leads in U.S. polls


© Bloomberg
Emerging-market bonds, stocks rise as Biden leads in U.S. polls

MSCI Inc.’s gauge of emerging-nation equities reached its highest since January on Friday, marking its best weekly performance in 18. The CBOE Emerging Markets ETF Volatility Index, which tracks the expected volatility in MSCI’s benchmark, fell 11% on Friday, the most in a month. Dollar-denominated government bonds, meantime, posted their first weekly gain since early September, a Bloomberg Barclays index shows.

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It’s a contrast to the risk aversion of the past month, when rising infections of Covid-19 and an increasingly tense election campaign pushed up volatility and weighed on sentiment. Confidence is rising now that investors feel they have more clarity on the outcome of the Nov. 3 vote, said Eric Baurmeister, head of emerging-market debt at Morgan Stanley Investment Management Inc. in New York.

“The thing markets hate the most is uncertainty,” Baurmeister said in an interview. “Risk assets have definitely responded positively to the lead of Biden and Harris increasing.”

A weaker dollar and better stimulus prospects if there is a Democratic sweep of

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