Matthew Breston

16 Flips | 6 Magazines | @mbreston | Keep up with Matthew Breston on Flipboard, a place to see the stories, photos, and updates that matter to you. Flipboard creates a personalized magazine full of everything, from world news to life’s great moments. Download Flipboard for free and search for “Matthew Breston”

A Detail In The Jobs Report Is Flashing An Inflation Warning Signal

But there were definitely plenty of interesting nuggets from the report worth addressing.<p>For instance, UBS's Drew Matus noted that the increase in wages was interesting when you consider the fact that growth in low-wage jobs continues to outpace growth in high-wage jobs.<p>This suggests tight labor …

Economy

America’s bond king just had his worst quarter ever, thanks to a wily Ben Bernanke

It’s not always good to be the king.<p>These have been tough days for Bill Gross, whose position as skipper of the megalithic Pimco Total Return Fund—the world’s largest mutual fund with over $295 billion in assets—has earned the camera-ready manager the nickname of “Bond King,” making him an …

Interest Rates

The Chinese Central Bank Freaked Out Over A Bank Lending Spike Unlike Anything It Had Ever Seen Before

First there was the Fed actions. Talk of the "taper" caused US interest rates to jump and equity markets to fall, as traders started to anticipate monetary tightening at an earlier date than previously thought.<p>But at the same time, in China, there was a spike in SHIBOR (which is China's equivalent …

How Can America Become More Dynamic?

In a recent post I discussed how labor market dynamism has declined the past few decades, with downward trends in job creation and destruction, hires, quits, separations, as well as industry and occupation switching. This raises an important question of what, if anything, can be done to make labor …

'Poor English saved Japan's banks from crisis'

Japan's banks emerged from the global credit crisis largely unscathed because managers did not speak English well enough to have got them into trouble, the country's finance minister has claimed.<p>Taro Aso said that bankers in Japan had not been able to understand the complex financial instruments …

Many economists line up behind Fed on outlook

Most economists surveyed by USA TODAY say economic growth will not be slowed by the Federal Reserve's market-rattling announcement last week that it will likely rein in its extraordinary stimulus this year.<p>Well over half of the economists surveyed said growth will not be reduced if the Fed begins …

UK and China in £21bn currency swap deal

<b>The Bank of England and its Chinese counterpart have signed a deal likely to boost trade between the UK and China in the yuan.</b><p>The Bank and the People's Bank of China have signed a three-year currency swap arrangement worth 200bn yuan (£21bn, $33bn), the UK central bank confirmed.<p>The UK is looking …

BIS fears fresh bank crisis from global bond spike

Soaring bond yields across the world threaten trillion of dollars in losses for investors and a fresh financial crisis unless banks are braced for the shock, the Bank for International Settlements has warned.<p>The Swiss-based institution said losses on US Treasury securities alone will reach $1 …

The scary reality of China’s debt crisis

The headlines today were awash with relief that China’s liquidity crisis has subsided, as the central bank, the People’s Bank of China (PBOC), finally came to the aid of banks after a week-long standoff. But it’s hard to look at this chart and see cause for relief:<p>“Keep in mind 8-9% is right on the …

Bank of China

Is That The Sound Of Asset Bubbles Bursting?

Ben Bernanke’s recent press conference and China’s interbank market crash may appear to have little in common but the truth is rather different. For both the U.S. and China are trying to deflate asset bubbles caused by excessive money printing and interest rates being kept too low for too long. And …

Russia Inks Big China Oil Deal

Russia inked a sizable oil deal with China on Friday, signing a $270 billion deal to supply oil to fossil fuel thirsty China for 25 years.<p>Rosneft, Russia’s biggest oil company, will be doing the drilling and the delivering for state-owned oil behemoth China National Petroleum Corporation.<p>The deal …

How Serious Is the Coming China Slowdown?

Not very -- at least not yet. But the risk of a steeper decline is there.<p>Reuters<p>Arthur Kroeber:<p>The recent gyrations on the Chinese inter-bank market underscore that the chief risk to global growth now comes from China. Make no mistake: credit policy will tighten substantially in the coming months, …

Will Summer Blackouts Doom The Texas Boom?

Texas has been an economic powerhouse in recent years. Gross domestic product in the Lone Star State, which hit $1.2 trillion before the recession, is now closing in on $1.4 trillion. The oil and gas industry has been booming. The housing market in Houston is the hottest in the country.<p>In terms of …

A lesson from the Fed about the pitfalls of easy money

Ben Bernanke looks like a man who chooses his words carefully.<p>But he will need to pick them better at the upcoming meeting of the Federal Reserve’s Open Markets Committee than he did four weeks ago in front of Congress. If the Fed chairman was hoping for an insight into the market’s reaction to …