China Bond Rally Still Has Room to Run, Ex-HKMA Manager Says

The People’s Bank of China may shift the interest-rate corridor down by 10 basis points in the second quarter if economic data continue to show softness, said Ng, who left the HKMA in 2015 and established investment firm Eastfort Asset Management Pte Ltd. “2019 should still be a mild bull market for China bonds, at least for the first half of the year given a dovish Fed, slowing onshore growth and more aggressive PBOC stance,� said Ng, who favors the nation’s five-year notes. Yields on China’s benchmark five- and 10-year notes have tumbled by almost 100 basis points over the past year as the U.S.-China trade war dent exports and factory output, spurring investors to seek havens.

See the original post here: 
China Bond Rally Still Has Room to Run, Ex-HKMA Manager Says

Record highs predicted for bitcoin in 2016 as new supply halves

The reason 2016 looks set to be different is that bitcoin's price is likely to be driven in large part by similar factors to a traditional fiat currency, following the age-old principles of supply and demand. Instead of being controlled by a central bank, bitcoin relies on so-called “mining” computers that validate blocks of transactions by competing to solve mathematical puzzles every 10 minutes. In return, the first to solve the puzzle and thereby clear the transactions is currently rewarded with 25 new bitcoins, worth around $11,000 .

See more here:
Record highs predicted for bitcoin in 2016 as new supply halves

Pension risks point to higher 2016 borrowing costs for some U.S. cities

By Hilary Russ NEW YORK (Reuters) – Some U.S. cities may have to pay higher interest rates to borrow money in 2016 as they contend with a host of new pressures on their underfunded public pensions, including new reporting rules and the impact of this year's tepid investment returns. The recession-era ghost of public pensions problems will continue haunting the $3.7 trillion U.S. municipal bond market next year, investors and analysts told Reuters. “A lot of local (general obligation bonds) don't have, in my opinion, the cheapness to compensate for this new information flow we're going to get,” said R.J. Gallo, senior portfolio manager at Federated Investors in Pittsburgh.

See the rest here:
Pension risks point to higher 2016 borrowing costs for some U.S. cities

Consumer, business spending support U.S. third-quarter growth

The U.S. economy grew at a fairly healthy clip in the third quarter as strong consumer and business spending offset efforts by businesses to reduce an inventory glut, underscoring its resilience despite a raft of headwinds. Gross domestic product grew at a 2.0 percent annual pace, instead of the 2.1 percent rate reported last month, the Commerce Department said in its third estimate on Tuesday. The Federal Reserve last week raised its benchmark overnight interest rate by 25 basis points to between 0.25 percent and 0.50 percent, the first increase in nearly a decade.

Continued here: 
Consumer, business spending support U.S. third-quarter growth

Consumer, business spending support U.S. third-quarter growth

The U.S. economy grew at a fairly healthy clip in the third quarter as strong consumer and business spending offset efforts by businesses to reduce an inventory glut, underscoring its resilience despite a raft of headwinds. Gross domestic product grew at a 2.0 percent annual pace, instead of the 2.1 percent rate reported last month, the Commerce Department said in its third estimate on Tuesday. The Federal Reserve last week raised its benchmark overnight interest rate by 25 basis points to between 0.25 percent and 0.50 percent, the first increase in nearly a decade.

Read the original: 
Consumer, business spending support U.S. third-quarter growth

American Airlines delays Paris flights; United operates as planned

American Airlines Group , the world's biggest carrier by passenger traffic, said on Friday it was delaying flights to Paris in response to the explosions and shooting attacks there, even though French airports remained open. “Currently Charles de Gaulle International Airport is open, however, we are holding our remaining departures this evening to Paris until we have additional information,” American Airlines spokesman Joshua Freed said. United Continental Holdings said its three scheduled flights would still depart for Paris on Friday evening from hubs in Chicago, Newark and Washington, D.C. “We're operating our schedule as planned,” spokesman Charles Hobart said.

More here:
American Airlines delays Paris flights; United operates as planned

J.C. Penney a case of ‘good results, bad timing’ as shares plunge

Data on Friday showed that U.S. retail sales rose just 0.1 percent in October, less than expected, suggesting a slowdown in consumer spending that could dampen expectations of a strong pickup in economic growth in the quarter. Macy's Inc and Nordstrom Inc , whose customers tend to be more affluent than Penney's, both cut their full-year forecasts this week after reporting disappointing results. J.C. Penney's gross margin rose by 70 basis points to 37.3 percent, helped by improved clearance and promotional selling margins as well as supply chain efficiencies.

View original here:
J.C. Penney a case of ‘good results, bad timing’ as shares plunge