Archive for January, 2016

FX

Friday, January 29th, 2016

Via Marc Chandler at Brown Brothers Harriman: Kuroda Surprises, Introduces Negative Rates in Japan, Sinks Yen - The Bank of Japan surprised the markets - Another important development this week is the recovery in oil prices - News in Europe has been overshadowed by the Japanese developments; however, a few economic reports should not ...

Big Yen Move

Thursday, January 28th, 2016

Via Bloomberg: The yen tumbled and Japanese bond yields dropped to records after central bank Governor Haruhiko Kuroda adopted negative interest rates. The Bank of Japan’s decision halted a yen rally that was threatening to be the strongest since Kuroda took office in 2013. The currency fell against all 16 major peers. ...

Negative Rates in Japan

Thursday, January 28th, 2016

Via the FT: The Bank of Japan has adopted negative interest rates in their first benchmark rate move in five years, but has also chosen not to expand its quantitative and qualitative easing programme beyond its current level of buying Y80tn assets a year. The BoJ has adopted a benchmark rate of ...

Overnight Preview

Thursday, January 28th, 2016

Via Robert Sinche at Amherst Pierpont Securities: AUSTRALIA: The Bberg consensus expects Private Sector Credit growth to inch up to 6.7% YOY for December, matching the high since October 2008 and a significant impediment to further RBA easing as credit growth is running about 3xs the 2.2% YOY growth in nominal ...

Market’s Iron Discipline

Thursday, January 28th, 2016

Via Bloomberg: Fortescue Metals Group Ltd., the world’s fourth-biggest iron ore producer, is “pleased” that rivals are taking heed of calls to slow supply growth that has contributed to a slump in global prices. “It’s good to see some better discipline coming in on the supply side,” Chief Financial Officer Stephen Pearce ...

Durable Goods Analysis

Thursday, January 28th, 2016

Via Millan Mulraine at TDSecurities: TD SECURITIES DATAFLASH                    US:  Business Capital Investment Intention Sours ·         Durable goods orders declined at a bigger than expected 5.1% m/m pace in December, marking the sharpest drop in this indicator since August last year. ·         Core orders were also quite weak, falling an equally big 4.3% m/m ...

The Benefits of Volatility

Wednesday, January 27th, 2016

Via Greg Ip at the WSJ: By Greg Ip Jan. 27, 2016 12:52 p.m. ET China’s leadership prizes stability. Its economic growth always seems to hit the government’s target and its currency, the yuan, seldom fluctuated. Until now. After years of going only up, gradually, the yuan has become unpredictable and volatile. In ...

Oil Defaults

Wednesday, January 27th, 2016

Via the FT: IMF and World Bank move to forestall oil-led defaults by: Jack Farchy in Moscow and Shawn Donnan in Washington Officials from the International Monetary Fund and the World Bank are heading to Azerbaijan to discuss a possible $4bn emergency loan package in what risks becoming the first of a series ...

Two Year Result

Tuesday, January 26th, 2016

Via Ian Lyngen at CRT Capital: *** A solid takedown with non-dealer bidding 70.2% vs. 59% norm and a 1 bp stop-through. *** * 2-year auction stops at 0.860% vs. a 0.870% 1-pm bid WI. * Dealers were awarded 29.8% vs. 41% average of last four 2-year auctions. * Indirects get 57.9% vs. 42% ...

Consumer Confidence

Tuesday, January 26th, 2016

Via Millan Mulraine at TDSecurities: US:  Households’ Mood Brightens in January ·         US household confidence jumped in January, with the CB consumer sentiment index rising to 98.1 from 96.3. This was a better showing than the consensus expectation for an unchanged print. ·         The gains were driven by a brightening in the mood ...