September 18, 2012
As many of you are already aware, CME Group decided yesterday to make several cuts due to low volumes and thin margins, and I was one of them. Thank you all for the kind words and show of support. Because of that, and my passion for the markets, The MorningSnapshot will live on. Please keep me in mind for future openings within your respective organizations.
I’m working with Bloomberg representatives today, and should have the full edition of The MorningSnapshot out each morning starting again tomorrow. Today was a bit stressful without my Bloomberg Launchpad.
- The current-account gap in the U.S. narrowed in the 2Q, helped by a pickup in exports and a larger income surplus. The gap shrank -12% to $117.4B from $133.6B in the prior quarter; the median estimate called for a $125B deficit.
- FedEx cut its full-year outlook for the period ending in May after quarterly earnings dropped for the first time in nearly three years amid reduced demand for their premium shipping services. Excluding potential benefits from cost cuts, earnings guidance was reduced to $6.2-$6.6 versus the previous forecast of $6.9-$7.4. “Weakness in the global economy constrained revenue growth at FedEx Express during our first quarter and affected our earnings,” Chief Executive Officer Fred Smith said in the earnings statement. “We are taking further actions to reduce costs and adjust our networks to match current and anticipated shipment volumes.”
- President of the Federal Reserve Bank of Chicago Charles Evans said QE3 will help the economy continue to grow despite Europe’s debt crisis and potential U.S. tax increases and spending cuts. “Given the slow and fragile recovery, the large resource gaps that still exist, and the large risks we face, it remains clear that we needed a more resilient economy,” Evans said today according to prepared text of a speech in Ann Arbor, Michigan. The Fed’s actions last week “provided a more accommodative monetary policy that can help us achieve such resilience.”
- German investor confidence rose for the first time in five months this September after the ECB unveiled a plan to purchase sovereign debt in the open market in an attempt to stem the debt crisis. The ZEW Center for European Economic Research said its index of investor and analyst expectations climbed to -18.2 from -25.5 in the prior month; economists had forecast a gain to -20.
- Prices for newly constructed homes in China rose in fewer cities in August than the prior month, with 35 of 70 cities covered reporting monthly price gains compared to 49 in July. Today’s release in Beijing reduces the likelihood that policy makers will strengthen steps designed to constrain property prices.
“Be miserable. Or motivate yourself. Whatever has to be done, it’s always your choice.”