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    Banks’ Improved Health Hurts Terms on Notes

    Banks that sell U.S. structured notes may be pressed to further increase the complexity and maturities of the securities as their declining credit risk makes it harder to pay attractive returns. An average of five-year credit-default swap prices for the six largest U.S. banks dropped to a six-year low of 71.8 basis points on Jan. [...]

    Seasonal Factors Set Stage for Above-Consensus Jobs Gains

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    Yuan and Yen Outlook for 2014 Challenge Consensus

    A strengthening Chinese yuan and weakening Japanese yen mean Asia’s two major currencies face sharply contrasting fortunes in 2014. China’s yuan is set for a strong year. The currency ended 2013 at 6.05 to the dollar, increasing 2.9 percent annually. In 2014, the yuan will rise to 5.98 by the end of the year, according to the median forecast of economists in [...]

    Fed Taper Shifts Policy Emphasis to Forward Guidance

    The Federal Reserve took a first step toward exiting its five-year intervention into asset markets by announcing it will begin reducing the pace of Treasury and mortgage purchases by $10 billion to $75 billion per month beginning in January. The pace of the taper is more symbolic than substantive given the probability that the Fed will remain ultra-accommodative during the next two to three [...]

    Fed Faces New Deflation Concerns With Limited Options

    Current price levels and related trends are similar today to recent periods when deflation fears forced the Federal Reserve to ease policy. Commodity prices have been on a steady decline since mid-2011 and non-petroleum import prices have contracted at a 1.2 percent pace during the last 12 months. Given personal consumption expenditure (PCE) inflation of only 0.7 percent and an associated core PCE of [...]

    NXP Puts Debt Cuts on Hold, Targets Shareholders

    NXP Semiconductors, the electronics maker whose debt load decreased more than peers since 2010, is favoring share buybacks and dividends rather than reducing obligations, said CFO Peter Kelly. Click HERE for more.

    The Yellen Fed

    When Janet Yellen takes over the position of Fed chair, she will preside over unwinding the quantitative easing legacy of her predecessor Ben S. Bernanke, and eventually guiding U.S. interest rates higher. Bloomberg Brief looks at what a Yellen-led Fed means for central bank policy. Click on the image below to download our free supplement.

    China’s Reform Push — Long Term Benefits, Short Term Costs

    China’s renewed commitment to reform and run of positive data buoyed investor confidence in the year ahead. Mounting structural challenges and a drag on growth from policy shifts may temper optimism. Click here to continue reading.

    China’s 2014 Monetary Policy to Target Credit Control

    Taming bulging credit, not price pressure, will probably drive China’s monetary policy in 2014. Price data for November shows inflation remains muted. The consumer price index rose 3 percent from a year earlier, down from a 3.2 percent gain in October. Click here to continue reading sample article.

    China’s reform Push Likely to Dent Growth in 2014

    BIG PICTURE COMMENTARY BY TOM ORLIK, BLOOMBERG ECONOMIST China’s renewed commitment to reform and run of positive data has buoyed investor confidence for the year ahead, though mounting structural challenges and a drag on growth from policy shifts should temper optimism.                   Click here to continue reading [...]

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