Stephen Gallagher
Stephen Gallagher
Stephen Gallagheris an English writer...
beginning bottom corporate durable equipment great recovery stronger sure
On the headline, it's a great report, up 5.8 percent. The recovery is under way. But we're also beginning to see a bottom in durable equipment declines, which is important because it's about corporate profits. But we still need that to be stronger to make sure that this recovery is here to stay.
businesses deal few great last tolerance
Businesses have been through a lot over the last few years, and many of them don't have a great deal of tolerance for uncertainty.
generate holiday level offer power pricing retailers terms
Retailers have no pricing power themselves, as evidenced by all the discounts they had to offer to generate holiday sales. In terms of volume, they succeeded, but not at the level of profitability they would have liked.
likely markets reduced result wider
Reduced liquidity in the markets is likely to result in a wider swap spread.
changes concerns costs doubt fanning labor moving perspective seen unit view
Unit labor costs moving up is seen as fanning some of the Fed's concerns on inflation, but I doubt from the Fed's perspective that this changes their view very much,
impact increase looking picking reduced seeing underlying
We're seeing a reduced impact from the hurricanes and we're getting back to the underlying norm. We're looking for about an 80,000 increase in non-farm payrolls in October, and it's still picking up.
couple economy growth healthy next
We have a very healthy economy with little inflation. We could have this kind of growth for the next couple of years.
burden coming difficult economic immediate shadow task
Coming out of Greenspan's shadow is a difficult enough task for anyone. The burden of that task is complicated by the immediate economic situation.
economic growth healthy inflation interest investors lower maintain rate
Investors maintain a healthy economic growth outlook, but now with lower inflation and interest rate risks.
auto pickup plays spending
Once the auto surge plays out, we should see a pickup in spending on other items.
core decrease energy fairly inflation low month next prices rapidly
It's really very good. Core inflation is fairly low and energy prices will decrease rapidly in the next month or two.
bit encouraged energy fear fed goods seeing stop
The Fed is not going to stop but it has got to be a bit more encouraged that their big fear ... that there would be pass-through from energy to other goods and they really are not seeing it.
confident convince fed help inflation low markets numbers remain secure september worried
The Fed is worried about pass-through, and even if they don't see it in the September numbers it won't make them feel secure about the future. This will help the markets remain confident that inflation is low but not necessarily convince the Fed.
consumer economy-and-economics employment gains growth healthy income job remain supportive
Employment growth is very healthy for the economy. Job and income gains will remain supportive for consumer activity.