Sunday, August 31, 2014

QUICK OVERVIEW



  • The U.S. GDP grew at 4.2 % in Q2 

  • Bloomberg: Rallies from Brazil to Japan and the Standard & Poor’s 500 Index’s first trip above 2,000 sent the value of global equities to a record $66 trillion. 
  • The value of equities globally has soared from $25 trillion in March 2009. 
  • Stocks were valued at $63 trillion at the 2007 peak, according to data compiled by Bloomberg. 
  • (Reuters) Investors in U.S.-based funds poured $2.6 billion into stock funds in the week ended Aug. 20 on a rebound in risk appetite, data from the Investment Company Institute showed. 

  • While the momentum has slowed to a rise of 1%, U.S. house prices remained on an upward track in Q2. 

  •  Use brains, stay in California: Through the first half of this year, about $13.6 billion of venture capital poured into California. Texas took in $700 million. Get this: San Diego collected $484 million — almost as much as the whole state of Texas. There were 52 deals in San Diego, 88 in Texas. 

  • More than one-third of mortgaged homeowners have effective “negative equity” or less than 20% equity in their home, according to a Zillow analysis. 

  •  U.S. Consumer confidence index rose to 92.4% the highest level since 2007. 
  • U.S Durable-goods orders rose by a record 22.6% in July 

  •  The rate of U.S. credit card payments at least 90 days overdue fell to 1.16% in Q2 – the lowest level in at least seven years. 

  •  Japan's consumer prices rose 3.3% in July 


  •  (Reuters) - Pressure is building within the Federal Reserve for officials to move as early as next month to more clearly acknowledge improvements in the U.S. economy and lay the groundwork for the central bank’s first interest rate hike in nearly a decade. 
  •  (MarketWatch) - The Federal Reserve has agreed to use interest rates on excess reserves as its main tool to set the federal funds rate and the bank plans to target a range instead of a precise number when it eventually raises rates, according to minutes of its July 29-30 meeting released Wednesday. For example, the bank now has a fed funds target of zero to 0.25%. In the past, the Fed would target a single number such as 3% or 4.5%. As expected, the central bank gave no timetable on when it expects to start raising the fed funds rate. Most analysts believe the Fed will wait until mid-2015 or so. Excess reserves refers to short-term assets that private banks keep inside the Fed. 

  • The time has come for France to resist Germany's "obsession" with austerity and promote alternative policies across the euro zone that support household consumption, French Economy Minister Arnaud Montebourg said. 

  • UK manufacturing purchasing managers' index fell to 52.5 from 54.8 in July

  • Spain has raised 1 billion euros ($1.3 billion) in its first-ever 50-year bond issue. The bond, due on Oct. 31, 2064, has a 4 % coupon

  • Spiegel reported  that   Merkel is unhappy with European Central Bank chief Mario Draghi for apparently proposing a greater emphasis on fiscal stimulus over austerity in order to boost growth in Europe.

  • Merkel has told German lawmakers that arming Kurdish fighters battling Islamic extremists in Iraq wasn't an easy decision but is in her country's interest


  • (Spiegel) Israel invests more money in research than most other countries -- and in no other place are research institutes, the defense industry, the army and politics as interwoven. The result is a high-tech weapons factory that successfully exports its goods globally.

  • The Unprotected: A Gaza Family Destroyed by Israeli Bombs... For an entire week, eight people -- women, children and an elderly man -- were trapped in their house in Gaza. They couldn't leave and nobody could help. An hour before the cease-fire, the family was wiped out by Israeli bombs.
  • Russia launched construction of a gas pipeline to China in a $400 billion deal, and plans  to  deliver 38 billion cubic meters of natural gas  for a period of 30 years through the 2,485 mile long pipeline.

  • With fears of Moscow growing after its intrusion in Ukraine, NATO member states in Eastern Europe would like NATO to direct a planned missile-defense system against Russia as well.

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