Waiting For Jackson Hole

The feds are in a funk. Their fixes are coming unfixed. That’s the good news. In the United States, as in Europe, markets are working diligently, trying to clear away decades of decadence, years of unbridled excess and profligacy. The feds are busy trying to stop them. It’s a fool’s errand, of course, which is precisely why the feds are on the case. We can think of no cadre better suited for the job. The Dow was down more than 200 points yesterday, with a sharp dive into the close. Apparently, nobody wanted to be caught holding the bag over the Thanksgiving Day break. The steep move lower was kicked off, so the papers tell us, by Germany’s failed bond sale. Or was it the threat to France’s AAA credit rating? Or a slowdown in growth reported from China? And from the US? And Europe. So ...

The big news this weekend was hurricane Irene which had folks up and down the east coast battening down the hatches. While the storm certainly did some damage, it weakened before slamming into NYC. I’m told our NY office will be open for business this morning, which is a bit of a surprise as it is located in the center of Long Island, directly in the track of Irene. The markets here in the US were already in a holding pattern, waiting for news from Jackson Hole, and it looks like most of the traders headed home early Friday as Mayor Bloomberg shut down the mass transit systems. By the time Bernanke made his much anticipated speech from Jackson Hole, the markets just yawned. Bernanke didn’t give the traders what they were looking for, and the Fed Chairman actually sounded a bit defeated. ...

Bernanke's sober assessment of the US economic condition at the Jackson Hole Symposium in Wyoming initially drove many investors into the value of the dollar as a vote of confidence that further measures could be taken, but weren't at this time. But a sudden flight to higher yielding assets generated a wide swing in dollar values by late trading Friday, with the USD's value now floating near weekly lows. Economic News USD - US Dollar Dips on Risk Taking Surge The US dollar (USD) was seen trading bearish Monday morning as traders saw a sharp rise in risk taking following last week's statements by Fed chairmen Ben Bernanke. The EUR/USD jumped from last Friday's low of 1.4328 to a weekly high of 1.4485 in this morning's early trading hours. The USD/JPY dropped a similar amount as dollar ...

Weekly Economic and Financial Commentary U.S. Review The Economy Continues to Grow at a Snail's Pace Much of the economic data released during the week continued to show sluggish economic growth. Real GDP was revised down to a 1.0 percent pace in the second quarter from the initially reported 1.3 percent rate. While growth has slowed significantly, it is growth nonetheless. Durable goods orders rose a more-than-expected 4.0 percent in July, which was double the consensus. Non-defense capital goods excluding aircraft fell 1.5 percent on the month, which may suggest weaker growth in business investment in the coming quarter. Searching for Clues of a Looming Downturn Much of the economic data released during the week continued to show sluggish economic growth. In fact, real GDP ...

(Reuters) - Oil prices rose in choppy trade on Friday as Hurricane Irene targeted the U.S. East Coast and traders weighed comments by Federal Reserve Chairman Ben Bernanke on the economy. Bernanke gave a speech on the ailing U.S. economy that mentioned no new stimulus measures, initially pressuring Brent and U.S. oil. Wall Street rebounded and closed higher after extending losses right after the speech. Increasing concerns that gasoline and diesel fuel supplies will be severely disrupted by Irene also provided a boost to oil futures as refiners, terminals and pipelines began to wind down operations ahead of the storm. Brent October crude gained 74 cents to settle at $111.36 a barrel, having swung from $109.30 to $111.70. For the week, Brent gained 2.52 percent. U.S. October crude rose ...

(Reuters) - Brent crude oil rose slightly in choppy trade on Friday as Hurricane Irene barreled the U.S. East Coast and traders weighed comments by U.S. Federal Reserve Chairman Ben Bernanke on the economy. Bernanke gave a speech on the ailing U.S. economy that mentioned no new stimulus measures, pressuring both Brent and U.S. oil. Wall Street rebounded after initially extending losses after the speech. Concerns that Hurricane Irene may disrupt gasoline and diesel supplies helped lift Brent and limited the dip by U.S. crude prices. Brent October crude rose 44 cents to $111.06 a barrel by 1:13 p.m. EDT, having swung from $109.30 to $111.29. U.S. October crude fell 40 cents to $84.90 a barrel, having recovered from an intraday low of $82.95. Thin crude trading volumes contributed to the ...

Few hours stands between the world’s leading economy and the week’s closing session, where all lights will be shed on the U.S scene throughout the day as the superpower will reveal its second-quarter GDP estimates in addition to the Fed’s most anticipated speech of the season. Markets are impatiently awaiting the Fed’s Chairman to show up today in the Federal Bank of Kansas City, which will be hosting 100 central bankers, policy makers, academics and economists from around the world at its annual economic policy symposium Aug. 26 - 28 in Jackson Hole, Wyoming, but eyes will be on Ben Bernanke’s speech. In fact, heavy speculation cited that Bernanke might unveil a third round of quantitative easing or at least give a clue regarding a near stimulus that could deeply tackle the current ...

(Reuters) - U.S. grain and soybean futures edged lower in early Asian trading on Friday as traders took to the sidelines waiting for a key report on the state of U.S. crops following a crop tour and a key Federal Reserve speech on the U.S. economy. Private firm Pro Farmer will release a national corn production estimate later on Friday and will also report on the condition of soybean crops, while fears are mounting that drought will impact on U.S. winter wheat plantings. Traders were also reluctant to take positions ahead of a key speech by U.S. Federal Reserve chairman Ben Bernanke later on Friday. The dollar rose as investors shied away from risky trades amid speculation that Bernanke will not hint at new plans to stimulate the U.S. economy at the annual central bankers meeting later ...

(Reuters) - Spot gold lost 0.4 percent on Friday, on course for its first weekly drop after seven straight weeks of gains, as investors awaited a speech by U.S. Federal Reserve Chairman Ben Bernanke later in the day. All eyes are on Bernanke's speech in Jackson Hole scheduled for 1400 GMT, with markets eager to hear what the Fed's plan is to help a struggling U.S. economy, although the growing consensus is that the Fed's options to stimulate the economy are limited. Spot gold declined 0.4 percent to $1,762.29 by 0218 GMT after a 1.1 percent rise on Thursday. It was on course for a 4.8-percent decline on the week, its sharpest weekly fall since week ended March 1, 2009. U.S. gold traded nearly flat at $1,764.30. "There is not a clear conviction on price direction as everyone is waiting ...