Reuters blog archive
from Global Markets Forum Dashboard:
That is Wang's outlook for the S&P 500 as he joined GMF for a quick session today. You may agree after looking at the chart.
"Prepare for the crash, guys. It looks very shaky. Instead of a big motive wave mode, the rally from the 2009 low of 666.79 looks to me a corrective wave cycle..the so-called diagonal triangle...immediate target at 1,750."
As for gold, he thinks that the "long-term downtrend" is intact.
"Long-term downtrend intact...rebound triggered by 1200 could be over. This level may be retested in 3 months."
Here are his calls on the euro, oil and the Indian rupee.
"Euro looks exhausted...may retrace to 1.3587."
from Stories I’d like to see:
1. Sealing deadly court files:
In the wake of continuing disclosures about General Motors’ failure to acknowledge critical safety issues related to faulty ignition switches, there’s a looming issue that has not been addressed: How litigation settlements negotiated by private parties can result in court-sanctioned cover-ups that endanger the public.
We now know that there were several cases in which the families of people who died in crashes after ignition switches failed quietly received cash settlements from GM.
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Last year, Lydia DePillis gathered a group of charts from the Economic Policy Instituteon the rise of the 401(k) and the fall of the pension. In 1980, 38% of workers had pension plans. In 2008, just 20% did. Retirement saving is now predominantly individual, and reflects wider inequality trends. Since 1990, the retirement savings of the top-fifth income earners have increased more than 3.5 times, “while they've declined or risen only slightly for most everyone else”, DePillis wrote.
If you can’t rely on a pension, and have to take matters into your own hands, then you have to pay a lot of attention to fees. Matthew O’Brien shows how a 1.25% difference in fees between an actively managed fund and an index fund can make a six-figure difference in retirement funds.
Reuters won a Pulitzer Prize on Monday for international reporting on the violent persecution of a Muslim minority in Myanmar, the Pulitzer Prize Board at Columbia University announced.
By Antony Currie
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Citigroup’s stock looks perfectly priced – for more mediocrity. The mega-bank’s $3.9 billion first-quarter profit was no disaster. Unlike JPMorgan, the firm run by Michael Corbat beat analysts’ estimates. Its bad bank, Citi Holdings, is no longer much of a drag. And the bank even managed to utilize a chunk of its substantial tax breaks and thus boost capital. For now, though, shareholders don’t have much more to cheer about.
from Alison Frankel:
For all of the outrage kicked up by Michael Lewis's depiction of fundamentally rigged securities exchanges in his book "Flash Boys," there's a giant obstacle standing in the way of punishing high-frequency traders or the exchanges that facilitate them: the blessing of federal regulators. As Dealbook's Peter Henning wrote in his White Collar Crime Watch column on why high-frequency trading is unlikely to result in criminal charges, securities exchanges openly sell access to high-speed data feeds and to physical proximity that increases trading speed by milliseconds. Exchanges are, in the words of Andrew Ross Sorkin, "the real black hats" of high-frequency trading, since they unabashedly profit from differentiating access to trading information.
That may be true, but exchanges do so with the full knowledge of the Securities and Exchange Commission and the Commodity Futures Trading Commission. Georgetown professor James Angel, who specializes in the structure and regulation of financial markets, told me Monday that as long as securities exchanges don't discriminate in the sale of high-speed access, they're acting within their regulatory bounds. He compared the system to airlines selling different tiers of service: It's perfectly fine to sell first-class seats to high-frequency traders as long as people in coach had the same opportunity to sit up front and opted instead for the cheap seats.
from Global Markets Forum Dashboard:
The Global Markets Forum kicked off our annual IMF/World Bank spring meetings coverage in Washington this past week with an engaging and varied guest list for our members, who were able to hear and participate in interviews with Institute of International Finance President and CEO Tim Adams and Federated Investor’s Geoffrey Pazzanese on global fiscal policy and markets; World Bank economist Hans Timmer on the Ukraine and Europe; and the Atlantic Council’s Jason Healey and Chris Brummer of Georgetown University on bitcoin and the future of digital currency.
Lant Pritchett of Harvard University’s Kennedy School of Government and Breakingviews columnist Christopher Swann also helped shed insight on one of the most popular topics at the IMF and World Bank meetings this year -- Rising Africa -- and the main developmental and investing challenges.