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Thursday, January 7, 2016
George Soros Sees Crisis in Global Markets That Echoes 2008
www.bloomberg.com
Global markets are facing a crisis and investors need to be very cautious, billionaire George Soros told an economic forum in Sri Lanka on Thursday.
China is struggling to find a new growth model and its currency devaluation is transferring problems to the rest of the world, Soros said in Colombo. A return to positive interest rates is a challenge for the developing world, he said, adding that the current environment has similarities to 2008.
Global currency, stock and commodity markets are under fire in the first week of the new year, with a sinking yuan adding to concern about the strength of China’s economy as it shifts away from investment and manufacturing toward consumption and services. Almost $2.5 trillion was wiped from the value of global equities this year through Wednesday, and losses deepened in Asia on Thursday as a plunge in Chinese equities halted trade for the rest of the day.
“China has a major adjustment problem,” Soros said. “I would say it amounts to a crisis. When I look at the financial markets there is a serious challenge which reminds me of the crisis we had in 2008.”
Soros has warned of a 2008-like catastrophe before. On a panel in Washington in September 2011, he said the Greece-born European debt crunch was “more serious than the crisis of 2008.”
Soros, whose hedge-fund firm gained about 20 percent a year on average from 1969 to 2011, has a net worth of about $27.3 billion, according to the Bloomberg Billionaires Index. He began his career in New York City in the 1950s and gained a reputation for his investing prowess in 1992 by netting $1 billion with a bet that the U.K. would be forced to devalue the pound.
Measures of volatility are surging this year. The Chicago Board Options Exchange Volatility Index, known as the fear gauge or the VIX, is up 13 percent. The Nikkei Stock Average Volatility Index, which measures the cost of protection on Japanese shares, has climbed 43 percent in 2016 and a Merrill Lynch index of anticipated price swings in Treasury bonds rose 5.7 percent.
China’s Communist Party has pledged to increase the yuan’s convertibility by 2020 and to gradually dismantle capital controls. Weakness in the world’s second-largest economy remains even after the People’s Bank of China has cut interest rates to record lows and authorities pumped hundreds of billions of dollars into the economy. Data this week reinforced a sluggish manufacturing sector.
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Thursday, December 24, 2015
Warmest Christmas Eve on record to unfold across eastern US
www.accuweather.com
Any hopes of a white Christmas that the weekend chill brought will be dashed in the eastern United States, with this Christmas Eve shaping up to be the warmest on record in many communities.
According to AccuWeather Senior Meteorologist Tom Kines, "On Christmas Eve, parts of the mid-Atlantic and New England could be just as warm as they were on the Fourth of July."
Record high temperatures, including some record warm minimum temperatures, are likely to be set from Florida to Maine.
Balmy Christmas Eve
According to AccuWeather Chief Long Range Meteorologist Paul Pastelok, "On Christmas Eve, daily record highs may be broken in the morning, followed by monthly record highs in the afternoon."
Records in the major cities of the Eastern states date back to the middle 1800s.
Another northward bulge in the jet stream will be responsible for the warmth in the East this week.
The jet stream is a strong river of air high in the atmosphere that guides weather systems and separates warm air to the south from cold air to the north.
Christmas Eve will feel more like Easter with highs ranging from the 50s in Maine to the 70s in the mid-Atlantic and the lower 80s in parts of the Southeast. That equates to highs that are 15 to 35 degrees Fahrenheit above normal.
"Temperatures could touch 80 as far north as the mid-Atlantic states," Pastelok said.
Widespread record highs will not only be challenged but also shattered in many towns and cities. The potential exists for records to be topped by more than 10 degrees from Atlanta to Washington, D.C., to Philadelphia to New York City and to Burlington, Vermont.
"It appears high temperatures will be in the 70s on Christmas Eve in New York City, which is about 35 degrees above normal for the date," AccuWeather Meteorologist Bill Deger said. "It was also unusually warm last Christmas Eve in 2014, when Central Park reached 58 F for a high."
Subtropical air will be drawn northward along with the warmth and will make it feel humid to some people.
Along with erasing any hopes for a white Christmas, the warmth will mean residents can leave the heavy winter jackets, hats or mittens at home when heading out for last-minute shopping or to Christmas Eve services.
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The only chance of a white Christmas will be in the Tug Hill region of New York state, east of Lake Ontario, and northern Maine, where old snow may remain on the ground.
The warmth will come despite some clouds and a couple of showers in the area. Those wanting to take advantage of the warmth by caroling, taking a walk, firing up the grill or engaging in any other outdoor activity should plan to keep an umbrella handy.
The passage of a cold front will ease the extreme warmth in the Northeast for Christmas Day, but temperatures will still be well above normal for the holiday. In the Southeast, Friday will likely be a repeat of Thursday.
Since temperatures will be so high during the overnight hours on Thursday, record highs for Christmas day may be set before dawn in a number of locations.
According to AccuWeather Meteorologist Ed Vallee, the return of persistent cold will not be the theme for the remainder of 2015.
"The extreme warmth of late will certainly be muted after Christmas Day, but above-average temperatures continuing through the end of the month will set the stage for December monthly temperature records to be broken in some areas of the East," he said.
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