Large parts of the eurozone are slipping deeper into a deflationary trap despite negative interest rates and one trillion euros of quantitative easing by the European Central Bank, leaving the currency bloc with no safety buffer when the next global recession hits. The ECB is close to exhausting its ammunition and appears increasingly powerless to do more under the legal constraints of its mandate. It has downgraded its growth forecast for the next two years, citing the uncertainties of Brexit, and admitted that it has little chance of meeting its 2pc inflation target this decade, insisting that it is now up to governments to break out of the vicious circle.
ECB's Mario Draghi has run out of magic as deflation closes in The Comprehensive Case Against Donald Trump | RealClearPolitics
Central bankers think steady price increases are a good thing. After all, inflation makes it easier for employers to cut real labour costs and helps monetary policy boost the economy without having to lower (nominal) interest rates below zero. Whether or not you agree, we thought it would be interesting to look at which products explain the rise of American consumer prices since 1990. As it turns out, just as the bulk of the growth in employment can be attributed to a few sectors where productivity is either low or unmeasurable, a whopping 88 per cent of the total rise in the price level boils down to four sectors of the US economy
Least productive sectors only thing keeping inflation going | FT Alphaville
Could bonds and stocks fall together? Expectations for a hike in interest rates spelled trouble for both stocks and bonds on Friday, no doubt adding to investor jitters over the prospect that supposedly diversified portfolios could suffer a double whammy. Jangled nerves are justifiable given the breakdown in the traditional relationship between bond yields and stocks. Typically, stocks and bond yields move up and down together on the idea that good news for equities is bad news for bonds—pushing down prices and lifting yields—and vice versa. Treasury yields jumped Friday and extended their rise Monday as bond prices fell on concerns the Federal Reserve might aim to raise rates more aggressively than previously thought. Stocks on Friday posted their biggest one-day decline since the aftermath of Britain’s June vote to leave the European Union, but recouped some lost ground on Monday. The 20-day correlation between the S&P 500 SPX, +1.47% and the U.S. 10-year Treasury yield TMUBMUSD10Y, -0.67% on Friday hit minus 0.52—approaching the most negative in five years, according to Jim Reid, macro strategist at Deutsche Bank, in a Monday note. A correlation of positive 1 would mean that two assets move in lockstep, while a correlation of minus 1 would indicate their relationship is perfectly inverse.
Why stocks and bond yields aren’t moving in tandem - MarketWatch
Unhappy with your inheritance? Then you might find it difficult to read this. Ultra high-net-worth individuals will transfer $3.9 trillion to the next generation by 2026, according to “Preparing for Tomorrow: A Report on Family Wealth Transfers,” released Monday by global wealth consultancy Wealth-X and insurance brokerage and consulting firm NFP. This reflects a 5% decline from the report’s 2014 estimate of $4.1 trillion, but this is because the massive global wealth transfer among the world’s newest superrich has already begun. The biggest concern for the world’s superrich was “succession and inheritance issues” (67%), a recent survey by global real estate consultants Knight Frank found.
The largest wealth transfer in history has already begun - MarketWatch
There is no need for such hyperbole when the cold facts of Totti’s career have become so extraordinary. This is his 25th season in Serie A – matching a record held by Paolo Maldini. He is the first player in Italy ever to find the net in 23 consecutive top-flight campaigns. Rather than slowing down, he has carried his excellent form from the latter part of 2015-16 into this new season. Over his last eight Serie A appearances, Totti has scored five goals and provided the assist on three more. This despite not playing more than 45 minutes in any one of those games.