Thursday, 4 June 2015

A few macro and related stories today

Travel inhibited Financial Orbit output yesterday.  Hopefully should be back to normal today.  First a few macro and related stories. 

ECB redux – The only Draghi quote you need to know: "We should get used to periods of higher volatility. At very low levels of interest rates, asset prices tend to show higher volatility,".  Bunds at highest level since October and have suffered the worst 2 days re change of yield in 17 years.  Where bond volatility starts…does equity volatility follow?


Greece - European Commission issued a statement saying "progress was made" during a five-hour talk between Jean-Claude Juncker, the European Commission president, and Greek Prime Minister Alexis Tsipras. Greek official says that the EU wants a Greek deal by June 14, this deadline was discussed at the meeting: BBG

On the Greek situation this is a good link: 'Europe has no choice - it has to save Greece'

Ahead of OPEC meeting Is US$80 new ideal oil price?  Link here

Couple economic statistics – overnight highest Australian trade deficit since 1971 and Brazilian interest rates up 50bps to 13.75%.  Neither the greatest for their local equity markets but my feeling is quite a lot priced in...so stock picking opportunities should abound in both.  

Interesting link - Humans will be hybrids by 2030.  Link here

Commodities - good chart from today's Financial Times...correlations have fallen to near zero equals in my mind diversification / portfolio level opportunities.  Interesting for such an out-of-favour area...







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