Mohamed El-Erian, Allianz chief economic adviser, shares his thoughts on the short euro/long equities trade.» Read More
Greece’s political leaders still don’t seem to get it, and neither do its official creditors. The longer this problem persists, the greater the challenge of turning around a country already beset by recession, insolvency, distressingly high unemployment and rising poverty.
Would a new Greek government be able to mobilize sufficient internal and external support as it embarks on one of the most difficult economic adjustments in modern European history?
Monday’s disappointing market reception to the bailout package for Spanish banks is a reminder to European policymakers of something that is more than familiar to veteran sovereign crisis managers in emerging countries: The greater the erosion of policymaking credibility, the harder it is to get the private sector to buy into your plans.
Bernanke is following the example of ECB President Mario Draghi, who has been vocal about the need for politicians to step up and deliver on their policy responsibilities—and not just rely on the central bank.
Mohamed El-Erian, Pimco CEO & co-CIO, offers his view on equity market volatility, China's interest rate cut, and Ben Bernanke's remarks today.
The weak jobs report underscored America's economic crisis but also a bigger risk for the market: a synchronized global slowdown. El-Erian weighs in on what it means for investors.
Recent volatility serves as yet another reminder that markets cannot be divorced from developments in the global economy — and especially at a time when the 17-member construct of the European monetary union is being increasingly questioned on account of what is happening in Greece.
Sunday’s elections in Europe occurred in three countries with diverse economic circumstances, and they were for different parts of government (presidential, regional, and parliamentary respectively). Yet the common message from the electorate is undeniable, reminiscent of a famous line in the 1976 movie Network: “I'm as mad as hell, and I'm not going to take this anymore!”
"Our strategy is based on a lackluster recovery. So we are assuming it will be a lackluster economy, Pimco CEO Mohamed El-Erian tells CNBC's Closing Bell.
A diverse set of circumstances and potential economic outcomes around the globe are forcing investors to take an equally diverse approach to investing, Pimco's Mohamed El-Erian said.
This week's market action serves as a vivid reminder of how dependent valuations are on central bank policies, and especially the aggressive provision of liquidity by the Federal Reserve and the European Central Bank.
An extended period of "financial repression"—brought on by low interest rates—means investors will have to do what they can to get income while keeping up a strong defense against global slowness, Pimco's Mohamed El-Erian told CNBC Monday.
"We are living in a financial repression right now," says Mohamed El-Erian, PIMCO CEO & co-CIO, sharing insight on the Greek default, the euro zone crisis, and the outlook for the markets and economy.
One of the challenges investors face today is how to reconcile seemingly conflicting messages coming from different markets. Is Dow 13,000 consistent with a 10 year U.S. Treasury at 2% and gold at almost $1,800? Is $125 Brent oil consistent with cyclically low implied volatility in many market segments, as well as widening CDS spreads for Middle Eastern oil producers?
This year's market gains will need more than an improving economic picture and investor willingness to shrug off Europe's debt crisis, Pimco's Mohamed El-Erian told CNBC.
The health of the global economy, and that of markets, depends on the success of a series of medium-term handoffs between the public and private sectors – in growth, balance sheets and credit flows.
It is unclear the extent to which the downgrades will alter the function of the international monetary system over time. It is also unclear how material the incremental headwinds blowing out of Europe will be for countries already facing internal fragilities.
Despite a steady flow of positive economic news, fears over European debt contagion have prevented investors from believing that a recovery has taken hold, Pimco's Mohamed El-Erian told CNBC.
The International Monetary Fund (IMF) should resist pressure from European Union leaders to take part in inadequate bailout programs for European countries, Mohamed El-Erian wrote in the Financial Times.
As a New York Jets fan, I despair of all the talk about the New England Patriots. I desperately want to wish the Patriots away, but I cannot. They matter. When it comes to Europe, investors around the world also face this exasperating combination of having, but not wishing to pay close attention.