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Livesquawk - Closing Wrap - Thursday 15.07
Closing Wrap - Thursday 15.07
  • OPEC Sees World Oil Demand Reaching Pre-Pandemic Level In 2022
  • Fed's Powell Says Inflation 'Uptick' Larger Than Expected
  • Fed's Evans: Taper Bar Could Be Met Later This Year
  • Fed’s Bullard Urges Start Of Bond Taper With Jobs Goals Met
  • Yellen Expects Inflation To Fade Over Medium-Term
  • Schumer Pushes Negotiators To Complete Work On Infrastructure Pact
  • Netflix Pushes Into Gaming With New Executive Hire
  • Deutsche Bank’s Spanish Mis-Selling Scandal Widens
  • Tesla’s Musk Says There Is ‘Always Some Chance’ That Cybertruck Will Flop
Re-emergence From Lockdown Keeps UK Jobs Market Recovery On Track

The latest UK labour market report has highlighted the continued jobs recovery after the hospitality sector reopened following lockdown. For the first time since the beginning of the crisis, some regions returned above pre-pandemic employment levels.


The Office for National Statistics said the number of payroll personnel showed another monthly increase, up 356,000 in June to 28.9 million. The office’s estimates of employment change showed an increase of 25,000 in the three months to May. This was below the 91,000 forecast and the 113,000 added last month. Over the same period, underlying data showed that the employment rate increased 0.1 percentage points to 74.8%.


However, the rate of hires has slowed from the pace immediately succeeding the relaxation of restrictions. In March-May, the UK unemployment rate was estimated at 4.8%, up a tenth compared to last month and 0.9 percentage points higher than before the pandemic. Compared to the previous quarter, the rate was 0.2 percentage points lower. (LiveSquawk - Continue Reading)

Gundlach: Dollar Is ‘Doomed’ Over The Long Term Because Of Rising US Deficits

DoubleLine Capital CEO Jeffrey Gundlach offered a dire long-term assessment on the U.S. dollar Thursday, telling CNBC in an interview he thinks the greenback is “doomed.”


“Ultimately, the size of our deficits — both trade deficit, which has exploded post-pandemic, and the budget deficit, which is, obviously, completely off the charts — suggest that in the intermediate term, I don’t really think this year, exactly, but in the intermediate term, the dollar is going to fall pretty substantially,” Gundlach said on “Halftime Report.”


“That’s going to be a very important dynamic because one of the things that’s helped the bond market, without any doubt, has been foreign buying with the interest rate differentials having favored hedged U.S. bond positions for foreign bond investors,” he added. (CNBC - Continue Reading)

Bitcoin Found A Happy Match In The Traditional 60/40 Portfolio

Bitcoin’s spectacular rallies and crashes have investors scratching their heads about whether it fits in a balanced portfolio. History shows a 60/40 allocation to stocks and bonds could be improved by some exposure to the digital asset, despite the risks.


So what happens when investors take the plunge?


Tweaking a global portfolio of stocks and bonds to also include the digital currency at the start of 2015 would have seen annualized monthly returns increase, with bigger gains the more money is allocated to crypto. That’s not a major surprise, since Bitcoin rose more than stocks or bonds. But just a 5% allocation would have seen gains to the investor 1.7 times bigger than using the standard mix.


The catch is that this also introduces Bitcoin’s 30-day annualized volatility of 81%. With just a 5% allocation and despite a low correlation with other assets, the volatility in the overall portfolio rose by 1.7 percentage points, based on a monthly-rebalancing rule. That’s a big price to pay in a market obsessed with the tradeoff between the size and predictability of gains. (Bloomberg - Continue Reading)

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