Monthly Archives: June 2012 - 4 posts found

Jobless Expansion Trend in the US Hits New Lows

So far the recovery in output, income and employment following the 2008/09 recession has been the weakest on record with only industrial activity appearing to buck the trend. Most remarkably, however, is the steady decline in post-recession expansions of employment and personal income growth. In the US, these have fallen since 1982, but have currently hit a new low point.

Read more

Hungary could face collateral damage from an unwind of the CHF peg

One country very sensitive to economic events in Switzerland, specifically the strength of the CHF, is Hungary. Hungary has a high ratio of loans denominated in a foreign currency – over 60% of GDP – most of which is in Swiss francs. As the HUF weakens, especially if against the CHF, Hungary’s external debt position rapidly worsens. Indeed, the correlation between Hungarian CDS and CHFHUF is as high as it’s been in 2 years.

Read more

US Bond Market Pricing in Stagflation and not Deflation

The US CPI is currently just above target at 2.3%, and long-term market expectations of inflation measured by the US inflation swap curve remains mid-range. This is in stark contrast to all-time lows in nominal treasury yields which appear to be pricing in almost the end of the world.

Read more

Interview on CNBC with Variant’s Head of Research Claus Vistesen

Variant Perception’s Head of Research Claus Vistesen was guest host on CNBC yesterday (Tuesday) to discuss the ongoing euro debt crisis and the outlook for the global economy given weakening data.    

Read more