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The rise in national debt brings cross-asset problems. Bank of America Corporation is worried that it is not a good sign.
Treasuries have been surprisingly strong this summer, beating out all other assets, from small-cap stocks to commodities. In the eyes of Bank of America Corporation's technical team, this is a worrying signal. The ratio of Treasury futures to the Russell 2000 index has risen since hitting an all-time low in March as precarious reflation trading weighed on small-cap stocks. Commodities are similar: bonds have made a comeback because of the poor performance of copper and oil prices over the past few months. In the past, when this ratio bottomed out, it usually meant that bonds were expected to rise-possibly weakening risk appetite by the end of the year, says Bank of America Corporation. This
Virgin Galactic closed down more than 17% on Monday after announcing that it would place the company's common stock
Virgin Galactic's stock price fell sharply on Monday, and early trading began to melt. Earlier, the company announced an application to place the company's common shares, up to 500 million US dollars. By the close, Virgin Galactic's stock price was 40.69 US dollars, a decrease of 17.3%, the biggest one-day decline since December 14 last year. The stock has risen more than 80% so far this year. Virgin Galactic has 240 million outstanding shares, of which 164.6 million are available for public trading. According to the company's closing price of 49.20 US dollars last Friday, 500 million US dollars is equivalent to nearly 10.2 million shares. Bank of America previously said that Virgin Galactic successfully tested the weekend
Federal Reserve Brad says the US job market is tighter than it looks
"I'm starting to think that the labour market should be interpreted as tight," James Bullard, president of the Federal Reserve Bank of St. Louis, said in an interview. "despite the booming economy and the rapid growth of GDP, I am not sure whether employment will catch up," Brad said, adding that monthly employment growth is not expected to reach 1 million for some time to come. Brad began calling on the Fed to look at other indicators of the tight job market, especially the ratio of unemployed to job openings. He said the Fed is about to start talking about reducing 120 a month.
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