The May Day Today 1 May 2014

Mayday Mayday! In fact it’s quite the reverse. Most major stock markets have recovered half, if not all, of their losses from the start of April. Interest rates and currencies remain rangebound and volatility in almost everything is down at multi-year lows. Everything looks just peachy. What could possibly go wrong?

* Fed to Keep Slowing Pace of Stimulus as Economy Shakes Off Winter Slowdown – last night’s FOMC statement was almost identical to the one before, with nothing as yet forcing a deviation from the taper path. The question remains, when will the first rate hike come? With Q1 GDP revealed yesterday at just 0.1%, it seems far enough away not to bother people for now {fifw NSN N4VHD96VDKJ2 <go>}
* WSJ: Fed Cuts Bond Buys, Sees Growth Pickup
* So will the UK raise rates first? BBRG points out that’s the market’s current bet: Booming Britain Condenses Yield Curve to Flattest Since July{fifw NSN N4UWSI6S972G <go>}
* It’s M&A within the US, but a sign of renewed corporate buoyancy: AT&T Said to Have Approached DirecTV About Possible Acquisition, WSJ Says {fifw NSN N4VTR26TTDS4 <go>}
* Karl Rove in WSJ: What Obama’s Dropping Numbers Mean
* WSJ: Bernanke Says Size Alone Doesn’t Make Too-Big-To-Fail
* Sinn Fein Says Leader Gerry Adams Is Questioned by Police on 1972 Murder {fifw NSN N4VYAQ6S9731 <go>}

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