Posts tagged 'Mohamed El-Erian'

El-Erian: Monday’s early market moves are notably consistent, but will they last?

Mohamed El-Erian, chief executive and co-chief investment officer at PIMCO, submits this guest post to FT Alphaville.

Note: an earlier post attributed to Mohamed was published in error. This was old copy. Apologies!

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Every once in a while you get an almost perfect alignment between the trio of overall market performance, relative moves, and the news flow.

Monday morning proved to be one of these cases – shedding interesting light on immediate market drivers and how they interact. But the bigger market complexities and uncertainties – and, therefore, where legitimate differences of views exist – are impacted only marginally. As such, durability is an open question. Read more

El-Erian guest post: Reconciling Competing Narratives

Mohamed El-Erian, chief executive and co-chief investment officer at PIMCO, submits this guest post to FT Alphaville.

During major market shocks, including the current one, it is important to listen to what is broadly viewed as conventional wisdom. Interestingly, while price correlations have gone up sharply among asset classes in the last few weeks, and specifically with virtually every financial security selling off, the accompanying narratives are still quite distinct depending on the individual market segment. Read more

El-Erian: A more differentiated yet expanded market assault on carry

Mohamed El-Erian, chief executive and co-chief investment officer at PIMCO, discusses recent market swings.

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Guest post: El-Erian on central bank action

Mohamed El-Erian, chief executive and co-chief investment officer at PIMCO, submits this guest post to FT Alphaville in reaction to this morning’s coordinated announcement.

Risk markets love liquidity injections, real and perceived. As such, they will welcome today’s announcement by six major central banks to reduce the price of emergency financing and broadening its scope. They will also like the possibility that this dramatic coordinated move provides a stronger context for further actions at the level of individual institutions. Read more

El-Erian: A disappointing G20 communiqué

Mohamed El-Erian, chief executive and co-chief investment officer at PIMCO, responds to the outcome of the G20 Cannes summit.

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El-Erian: Interpreting Bernanke’s Jackson Hole speech

Mohamed El-Erian, chief executive and co-chief investment officer at PIMCO, responds to the Federal Reserve chairman’s speech at the Jackson Hole conference.

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El-Erian: What to make of the Franco-German Summit

Mohamed El-Erian, chief executive and co-chief investment officer at PIMCO, briefly responds to Tuesday’s news out of Paris.

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El-Erian: On governments as portfolio managers

From the ranks of FT Alphaville’s own AAA-list comes Mohamed El-Erian with a post about the three phases of governments’ involvement in global markets since the crisis.

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Après Strauss-Kahn [Updated]…

No, you could not make it up, as FT Alphaville previously noted.

News of the weekend arrest of IMF managing director Dominique Strauss-Kahn gave blogs and news media organisations an eventful Sunday night as more information emerged about the circumstances allegedly leading to Strauss-Kahn’s arrest. Read more

El-Erian: Implications for global markets of Bin Laden’s death

Mohamed El-Erian, chief executive and co-chief investment officer at investment fund PIMCO responds to Sunday’s news that Osama bin Laden, was killed near the Pakistani capital of Islamabad following a “targeted operation” by US forces.

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An Egyptian diaspora bond?

Remittances are a fascinating and oft neglected slither of global capital markets.

Flows are inherently difficult to measure but the World Bank estimates ‘developing’ countries received in excess of $300bn in 2009 and 2010 — around three times more than official aid flows. Read more

El-Erian on Mubarak’s defiance…

Mohamed El-Erian, the PIMCO chief executive and quite possibly the best known Egyptian in finance, has been in touch. He’s not impressed by Hosni Mubarak’s refusal to resign.

As he told FT Alphaville late on Thursday: Read more

El-Erian: What did Bernanke tell us this morning?

Mohamed El-Erian, chief executive and co-chief investment officer at PIMCO, argues that Federal Reserve chairman Ben Bernanke’s latest speech has strengthened the case for QE2 – but also highlighted its costs .

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Overheard in the Long Room

The members of FT Alphaville’s private forum, the Long Room, enjoy (and regularly engage in) spirited debate. Here’s a selection of what’s been said and posted just recently:

- There’s a history lesson on the limitations of monetary policyRead more

El Erian: The Fed, as expected…

Mohamed El-Erian, chief executive and co-chief investment officer at PIMCO, examines the Fed’s central message in Tuesday’s FOMC statement and notes the next few days in the markets will reveal more about its impact.

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Analysts see Fed holding

Global equity and commodity markets rallied on Monday and the dollar eased back as investors focused on Tuesday’s meeting of the Federal Reserve’s Open Market Committee, amid suggestions that the Fed could announce more steps to boost the US economy, reports the FT.  On rates, economists widely predicted the Fed would keep its powder dry, at least for now, after moderate improvements to a range of economic indicators. Meanwhile, Pimco chief Mohamed El-Erian, writing on FT Alphaville, looks ahead to “an interesting week” -  not just at the Fed.

Guest post: El-Erian on an interesting week ahead

Mohamed El-Erian, chief executive and co-chief investment officer at PIMCO, argues that this week will show Europe’s debt crisis and the global configuration of currencies returning to the fore.

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El-Erian: How to read Bernanke’s Jackson Hole Speech

Mohamed El-Erian, chief executive and co-chief investment officer at PIMCO, reacts to Fed chairman Ben Bernanke’s Jackson Hole speech.

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Equities slide as markets shun risk

Asian stocks extended the rout in global equity markets on Wednesday as investors rushed into government bonds amid a deteriorating growth outlook, the FT reports. Bond yields in Germany and the US touched record lows. Sliding commodity prices helped propel the largest one-day rise in the dollar against the euro since the “flash crash” of May 6, while the yen reached its strongest level in 15 years. Data showing that China’s July industrial output grew at its slowest rate for 11 months preceded weaker reports from Japan and Europe, and news that the US trade gap reached a 21-month high in June. Writing on FT Alplhaville, Pimco chief Mohamed El-Erian outlines three possible reasons for the turmoil.

Further from El-Erian on Bernanke and sliding stock markets

With Fed chairman Ben Bernanke on Capitol Hill presenting his semi-annual monetary policy report to Congress, stock markets are under notable pressure.

Bernanke’s full written testimony is now availableRead more

El-Erian: What to expect from Bernanke’s report to congress

Mohamed El-Erian, chief executive and co-chief investment officer at PIMCO, discusses the options facing the Federal Reserve as chairman Bernanke prepares to address Congress.

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G20 scraps global bank levy

G20 finance ministers on Sunday agreed to drop proposals for a global levy on banks, bowing to opposition led by Canada after marathon negotiations at their weekend meeting in Busan, South Korea. A G20 communiqué said banks should make contributions only in countries where taxpayers had bailed out highly indebted banking systems. Pimco chief Mohamed El-Erian writes on FT Alphaville that the G20 result leaves the door open to “even wider country differentiation”.

Guest post: El-Erian on the need to listen carefully to what the G-20 is saying

Pimco’s chief executive and co-chief investment officer Mohamed El-Erian reacts to this weekend’s news out of Busan, South Korea.
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Count me among those that believe that the G-20 is one of the better approaches to global governance in a world that desperately needs improved international policy coordination. While the G-20 has not gotten to where it could and should be, its periodic meetings provide us with important insights into global policy issues. Read more

Guest post: El-Erian on a critical weekend for Europe and the economy

This is a critical weekend for Europe (and the global economy), with governments shifting to a “whatever it takes” mode as they scramble to regain control of the situation, Pimco’s chief executive Mohamed El-Erian writes for FT Alphaville.

Yesterday night’s important news out of Europe points to renewed efforts to rescue Greece and safeguard the Euro. The news will undoubtedly be accompanied by additional announcements out of Brussels and Berlin, as well as Washington DC. In the process, the stakes are getting even bigger…for Greece, Europe and the global economy. Read more

Guest post: Mohamed El-Erian on the worsening Greek problem

The impact of the Greek debt debacle is being felt across the capital markets and in the peripheral European countries, Pimco’s chief executive Mohamed El-Erian writes for FT Alphaville. Worse, there is no immediate solution to the mounting difficulties facing Greece. Read more

Guest post: Mohamed El-Erian – Bernanke’s four point ‘to-do’ list

Pimco’s chief executive comments on Ben Bernanke’s reappointment for a second term at Chairman of the Federal Reserve.

President Obama’s announcement reappointing Fed Chairman Bernanke for a second four-year term does, and should, command broad based support. Read more

Guest post: Mohamed El-Erian on Bernanke’s bold prose

From Pimco’s chief executive…

While it may not rank quite as high as his appearance on the US news show ’60 Minutes’ a few months ago, Chairman Bernanke’s Op Ed in today’s Wall Street Journal is nevertheless notable and important. It represents a bold attempt by the Federal Reserve to reach out broadly and pre-empt mounting concerns about the challenges facing monetary policy. Read more

Guest post: Mohamed El-Erian – “The crisis is morphing again”

Pimco’s chief executive  comments on the suggestion from US presidential adviser Laura Tyson  that America should consider drafting a second stimulus package, since the $787bn plan agreed in February is proving “a bit too small.

Dr. Laura D’Andrea Tyson’s comments at the Nomura Equity Forum in Singapore were attracting considerable market attention on Wednesday, and rightly so. They come at a time when policy indications—actual, expected and perceived—have already become important drivers of relative and absolute valuations in a number of markets. Read more

El-Erian: Bernanke and the “new normal”

Pimco’s Mohamed El-Erian kindly provided FT.com with a snap commentary on Ben Bernanke’s congressional testimony on Wednesday.

Extract: Read more

Guest post: Mohamed El-Erian on the bumpy journey to a ‘new normal’

For a while now, US economic policymakers have been dealing with the challenge of driving a car with a sputtering engine up a hill, says El-Erian, chief executive of Pimco and author of ‘When Markets Collide: Investment Strategies for the Age of Global Economic Change‘.

They needed to do a lot to keep the car moving forward; or at least stop it from rolling back too quickly. Read more