Pathlight Investors’ Top Recommended Reads - September 2014

  • Posted on: 9 December 2015
  • By: admin

Ready for some more great articles?  Here's our picks for September 2014:

Obama to use “economic patriotism” push to bid to keep Democrats in control of the Senate.  Democrats, inc. the White House, plan to sustain a campaign against inversions into the Nov mid-term as they feel this is an issue that can help them retain control of the Senate.  Polls suggest the anti-inversion argument may resonate.  The Hill. http://goo.gl/9NZTzm   

Fed update from J Hilsenrath in the WSJ; the Fed is confident it isn’t “behind the curve” and will raise rates at the appropriate time w/o stoking inflation or imperiling the nascent economic recovery.  The Fed acknowledges improving labor trends but when it scans the horizon doesn’t see signs of overheating.  The PCE continues to track below the Fed’s 2% target while wage increases stay tepid.  Yellen “and other top Fed officials believe they have been served well keeping the money spigots open in an economy that keeps disappointing. They will need some more proof before they heed the warnings of those who say they're falling behind the curve” – WSJ   http://goo.gl/cNXNyn   

 

Obama to use “economic patriotism” push to bid to keep Democrats in control of the Senate.  Democrats, inc. the White House, plan to sustain a campaign against inversions into the Nov mid-term as they feel this is an issue that can help them retain control of the Senate.  Polls suggest the anti-inversion argument may resonate.  The Hill. http://goo.gl/9NZTzm   

 

Immigration – White House considering executive action on immigration.  Soon after Labor Day, Obama is expected to announce business-friendly executive actions aimed at addressing immigration.  The moves could refine deportation priorities and expand a program that gives safe harbor and work permits to qualifying illegal immigrants.  In addition, in a move that would favor the tech industry, the White House may exclude dependents from the cap on employment-based green cards, a decision that would effectively double the amount of green cards available.  WSJ  http://goo.gl/8Pwgwx   

 

Hagel sounds the alarm on ISIS, calling the group “beyond anything we’ve seen” and “an imminent threat to the US”.  Gen. Dempsey, the chairman of the JCOS, added that ISIS was “possible to contain” and said the group’s momentum had been stopped.  USA Today.  http://goo.gl/RSqxeS   

 

Europe faces "lost decade" or worse unless the ECB becomes more aggressive; the Eurozone economy is still smaller than it was prior to the Lehman Bros collapse.  "QE by the ECB looks almost an inevitability. But it would probably have to be massive. And having left it so late, with low-growth expectations now embedded; with deflation an increasing spectre; and with only a limited availability of financial instruments to buy, the ECB may well have missed the boat."  FT    http://goo.gl/KAfKNj  

 

France – Hollande gave an interview to Le Monde in which he talks about wanting to accelerate reforms in France; Hollande pledges to launch a plan to boost home building in France and says he will reform taxes/welfare benefits to help lower-income households.  Hollande reiterated his view that the EUR remains overvalued (despite the recent decline) – Reuters   http://goo.gl/sZxcLS

 

China stimulus speculation – the WSJ says China faces an “uphill” battle to hit its ’14 growth targets, raising pressure on Beijing to step up fiscal or monetary stimulus – WSJ    http://goo.gl/6P8C38    

Economists increasingly sanguine on the US eco outlook; according to a WSJ survey, ~90% of economists anticipate US growth improving in H2 vs. H1.  None foresee deteriorating economic momentum.  However, respondents increasingly are worried about int’l markets.  Just 1/3 think Europe’s outlook has improved.  Most economists don’t expect the Fed to hike before June of ’15.  WSJ   http://goo.gl/6oX81Y

 

 

Obama address Wed night very consistent w/media previews.  The President pledged to attack and destroy ISIS in Iraq and Syria.  The US will be leading an int’l coalition (inc. European and Middle Eastern countries) but won’t use ground troops.  Obama also said Washington would be expanding training/arming program for moderate Syrian rebels.  The President welcomed Congress to vote on his plan but believes he has the authority already to move forward.  NYT  http://goo.gl/xRvdml

 

Washington to move forward w/fresh Russian sanctions (announcement expected Friday).  According to Reuters the US will sanction Sberbank (Russia’s largest bank) and further limit other Russian banks’ access to US capital.  Reuters   http://goo.gl/octRrZ   

 

Why Aren’t More Renters Becoming Homeowners?  NY Fed research.  “We see that the main reasons preventing renters from becoming owners are weak balance sheets (low savings or high debt), low income, and lack of access to credit. Some cite inherent advantages of being a renter (such as low upkeep and more flexibility), but notably few say that they do not want to own because they are concerned that house prices might fall”.  NY Fed.  http://goo.gl/tpZ0Wl

 

And On A Lighter Note…

Oakland Reverses 80-Year Ban on Pinball Machines, Celebrates With Monthlong Tournament: http://goo.gl/XqcyPp