Archive for the ‘Uncategorized’ Category

Sunday Evening FX Musings

Sunday, July 24th, 2016

Via Marc Chandler at Brown Brothers Harriman: Will the FOMC Halt the Dollar's Advance? The US dollar gained against all the major currencies over the past week.  It also rose against many emerging market currencies.  A notable exception was the Chinese yuan.  The yuan rose before the weekend, extended its advancing streak ...

The Fruits of Low Rates

Sunday, July 24th, 2016

Via the WSJ: By Jon Sindreu July 24, 2016 5:39 p.m. ET Plummeting bond yields are enabling some cash-strapped governments to reduce their deficits and potentially ease austerity measures. Spain is the trend’s latest beneficiary: It sold a three-year bond with a negative yield for the first time. That is a balm as the ...

Avoiding the Race to the Bottom

Sunday, July 24th, 2016

Via the Japan Times: Lew tells Aso currency devaluation war should be avoided Jul 23, 2016 CHENGDU, CHINA – U.S. Treasury Secretary Jack Lew stressed the importance of avoiding competitive currency devaluations in a meeting with Finance Minister Taro Aso in Chengdu, China, on Saturday, according to U.S. Treasury officials. Lew drove ...

Full Circle

Saturday, July 23rd, 2016

Via Bloomberg: July 23, 2016 — 12:00 AM EDT Futures traders rebuild wagers on interest-rate hike in 2016 Policy makers to meet for first time since U.K. referendum   To the federal fund futures market, it’s like Brexit never happened. The implied probability that the Federal Reserve will raise interest rates by year-end touched 47 percent ...

Financial Transaction Tax

Saturday, July 23rd, 2016

The global economy has been mired in a murky malaise for years. One would think that officialdom would consider policy measures which would encourage risk taking,particularly in the aftermath of the Great Recession which has left the world a more risk averse place. Against that background, German Finance Minister Schaeuble ...

Kuroda Talks of Stimulus But Not Helicopters

Saturday, July 23rd, 2016

Via Blomberg: Toru Fujioka July 23, 2016 — 3:18 AM EDT   Bank of Japan Governor Haruhiko Kuroda reiterated that the central bank is prepared to step up stimulus if needed, while noting again that so-called helicopter money is prohibited. “We have said we will check risks in the economy and prices and expand monetary ...

Refiners Still Bleeding

Saturday, July 23rd, 2016

Via WSJ: By Alison Sider July 23, 2016 5:30 a.m. ET 0 COMMENTS Oil companies counted on American drivers hitting the road this summer to reduce the glut of fuel in storage, but that hasn’t happened, and a continuing buildup portends dismal second-quarter earnings due out soon. Since crude prices plunged in 2014, giants like ...

Slashing Jobs

Friday, July 22nd, 2016

Via WSJ: By Lynn Cook and Alison Sider July 22, 2016 1:51 p.m. ET 0 COMMENTS Energy companies continued to cut thousands of jobs during the second quarter, even though many chief executives are now voicing optimism that the oil market crash is ending and a rebound in drilling is afoot. Although the heads of Halliburton ...

Wealth Bubble Warning

Friday, July 22nd, 2016

Via Bloomberg: Rich Miller RichMiller28   July 22, 2016 — 7:00 AM EDT Americans are about as wealthy as they've ever been—and that's a worry? Yup, say veteran economists Daniel Thornton and Joe Carson. They're concerned that the swelling of wealth could prove unsustainable because it's far outstripped the growth of the ...

FX

Friday, July 22nd, 2016

Via Marc Chandler at Brown Brothers Harriman: Sterling Pounded as Flash PMIs Show Brexit Impact Localilzed In what Markit said would be a one-off, a flash PMI reading for the UK was made available; the news was not pleasant The small declines posted in by the eurozone aggregate readings pale ...