Phil1111 1,182 #1 July 13, 2016 "The trade gap in the United States widened to USD 41.14 billion in May of 2016 from a USD 37.4 billion deficit in the previous month. Figures came worse than market expectations of a USD 40 billion shortfall as exports shrank 0.2 percent hurt by a stronger dollar and imports rose 1.6 percent due to higher oil prices." http://www.tradingeconomics.com/united-states/balance-of-trade "Germany has sold 10-year Bunds with a zero per cent coupon, issuing benchmark debt with a negative yield for the first time in history...Increased demand for the euro area’s ultimate safe haven has exacerbated a problem for the European Central Bank’s QE programme, which risks running out of eligible Bunds trading with yields above the minus 0.4 per cent deposit rate." https://next.ft.com/content/95cfdf42-5b96-3df7-8758-c8fe723715e7 "Updated July 6, 2016 8:48 a.m. ET HONG KONG—The rally in government bonds broke new ground Wednesday as the yield on 20-year Japanese debt fell below zero for the first time—the latest unprecedented market move driven by deep investor unease about the world economy. http://www.wsj.com/articles/investors-take-fright-as-havens-dwindle-1467809132 "July 12 (Reuters) - The S&P 500 and the Dow hit record intraday highs on Tuesday, while the Nasdaq wiped out its losses for the year, buoyed by increasing prospects of global economic health and with Alcoa getting the U.S. earnings season off to a promising start." http://www.cnbc.com/2016/07/12/reuters-america-us-stocks-dow-sp-hit-record-highs-nasdaq-erases-2016-losses.html Negative bond yields reflect the idea that investors will buy a financial instrument that will not pay the bondholder back his original investment over the term of the bond. Basically he just wants a safe place to park his money and is not worried about inflation. Trading deficits reflect a basic outflow of money to other countries. For the US its a basic reflection of his US currency values vr. other currencies. "Euro Area recorded a Government Debt to GDP of 90.70 percent of the country's Gross Domestic Product in 2015. Government Debt to GDP in the Euro Area averaged 75.12 percent from 1995 until 2015, reaching an all time high of 92 percent in 2014 and a record low of 64.90 percent in 2007" http://www.tradingeconomics.com/euro-area/government-debt-to-gdp "The United States recorded a Government Debt to GDP of 104.17 percent of the country's Gross Domestic Product in 2015. Government Debt to GDP in the United States averaged 61.94 percent from 1940 until 2015" http://www.tradingeconomics.com/united-states/government-debt-to-gdp Quote Share this post Link to post Share on other sites
