Goldman out with a continued major bearish forecast for Iron Ore in USD terms in the steel sector. Continued bullish factor for import nation currencies.
Goldman says iron ore could slump as much as 30 percent http://t.co/TMlISwYB4n
— Bloomberg Markets (@markets) August 17, 2015
Goldman forecasting an additional major 30% rout in the steel sector; meanwhile, everybody is going apoplectic about China's CB adjusting their fixed currency exchange rate by 1%.
3 comments:
Matt, I'm getting it with regards to exporters putting their products on sale which causes downward currency valuation on the exporting countries unit of account. With today's Empire State Manufacturing Survey here: http://www.newyorkfed.org/survey/empire/empiresurvey_overview.html, it looks like US companies will soon be discounting their products in USD too.
The Fed's rate increase in September may not come soon enough to inject enough income into the US economy to stop an official, full fledged recession in 2016.
Could be sapiens. .... but we can just watch the DTS and compare YoY to see if this leading flow is reduced or increased. ...
If we can stay at least breakeven on this flow we will probably be able to continue to muddle thru...
May even be able to take advantage of this continuing increase in real terms of trade coming from the exporters. ... US firms may be able to swing some increase in margins....
Rsp
I can't help but think that ACA subsidies to health insurance companies have contributed a lot YoY to maintain/increase spending on the DTS. A swing subsidy to the US economy, that acts like a swing oil producer, e.g. Saudi's price setter status for petroleum companies to increase/decrease related product prices.
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