Goldman Sachs Bear-Market Risk Indicator at Highest Since 1969

A Goldman Sachs Group Inc. indicator designed to provide a “reasonable signal for future bear-market risk” has risen to the highest in almost 50 years. The firm’s Bull/Bear Index, which is based on measures of equity valuation, growth momentum, unemployment, inflation and the yield curve, is now at levels last seen in 1969. While the […]

Rising U.S. bond yields bring back Wall Street’s sinking feeling

Back in late January and early February, there was a 10 percent correction in the S&P 500 .SPX, with stock investors spooked as Treasury yield increases intensified with a monthly payrolls report showing the biggest wage gains for workers since 2009. This time around, strong economic data worried bond investors, who sent the benchmark yield on […]

BoE warns EU that £41tn of derivatives at risk after Brexit

The Bank of England has issued its starkest warning yet that up to £41tn of derivatives contracts maturing after Brexit are at risk unless European officials urgently address regulatory uncertainty. The BoE said on Tuesday that clearing houses would have to tell European members such as banks to move their business or risk falling foul […]

Silicon Valley war: Facebook Zuckerberg left alone by WhatsApp, Instagram and Oculus founders

One of Mark Zuckerberg’s closest deputies and the co-founder of WhatsApp have become embroiled in a spat about Facebook and its dealmaking, just days after the abrupt resignation of Instagram’s creators. The dispute will raise new questions about Mr Zuckerberg’s leadership style and his relationship with the entrepreneurs whose companies he paid billions to acquire.  […]

Anti-capitalism group targets French banks a decade after Lehman Brothers demise

PARIS (Reuters) – Anti-globalization activists threw black liquid soap across the glass-front of a bank in Paris on Saturday, one of several actions planned in France and Germany in protest against banking practices a decade after the collapse of Lehman Brothers. Railing against tax fraud and mega-investments in fossil fuels by the world’s biggest banks, […]

JPMorgan Predicts the Next Financial Crisis Will Strike in 2020

Model sees 20% U.S. stock slump, credit spreads 115bps wider. Loss of liquidity in financial markets could worsen results. How bad will the next crisis be? JPMorgan Chase & Co. has an idea. A decade after the collapse of Lehman Brothers sparked a plunge in markets and a raft of emergency measures, strategists at the […]

A man with cancer awarded $298 million in lawsuit against Monsanto

A jury’s $289 million award to a former school groundskeeper who said Monsanto’s Roundup left him dying of cancer will bolster thousands of pending cases and open the door for countless people who blame their suffering on the weed killer, the man’s lawyers said. “I’m glad to be here to be able to help in […]

Tax avoidance: the missing profits of nations

  Between 1985 and 2018, the global average statutory corporate tax rate fell by more than half. This column uses new macroeconomic data to argue that profit shifting is a key driver of this decline. Close to 40% of multinational profits were artificially shifted to tax havens in 2015, and this massive tax avoidance – and […]

Bernanke Says U.S. Economy Faces a ‘Wile E. Coyote’ Moment in 2020

U.S. economic growth could face a challenging slowdown as the Trump Administration’s powerful fiscal stimulus fades after two years, according to former Federal Reserve Chairman Ben Bernanke. Bernanke said the $1.5 trillion in personal and corporate tax cuts and a $300 billion increase in federal spending signed by President Donald Trump “makes the Fed’s job […]

Trump might be leading the US to another meltdown

The US financial regulatory agencies have weakened banking rules. Then in late May, Congress voted to weaken them even further. They went after the Volcker Rule which prohibits banks from making risky investments with depositors’ money. The Volcker Rule is part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which then President Barack Obama signed in 2010 […]