Archive for November, 2015

FX (Very Long Today)

Monday, November 9th, 2015

Via Marc Chandler at Brown Brothers Harriman: Dollar's Gains Pared to Start Week, but Yen Remains Soft - The combination of strong US data and soft German data sets the broad investment framework for the period ahead - The argument that the divergence meme has been long discounted never sat well with us - ...

Capital Hole

Monday, November 9th, 2015

Via the FT: The biggest international banks must raise as much as €1.1tn by 2022 in special debt designed to prevent taxpayer bailouts of lenders, a global group of policymakers said as it claimed it had “created the tools needed to end too big to fail banks”. The Financial Stability Board, which ...

Overnight

Monday, November 9th, 2015

The dealers who are kind enough to write to me overnight have reported real money sellers of 7s 10s and 30s. End users bought 2 and 3s. Trading accounts bought 10s.

Early FX

Monday, November 9th, 2015

Via Kit Juckes at SocGen: <http://www.sgmarkets.com/r/?id=hf140c32,14bd83d2,14bd83d3&p1=136122&p2=1595c4e912b39270f7555bb5ca723f1b> Good morning. so far, the reaction to Friday's US labour market data might best be described 'edgy'. Bond yields are higher across Asia, marginally higher in Europe. Most EM-Asian currencies are a bit softer, but key Asian equity indices are higher while Europe's have opened marginaly ...

T Bill Shortage

Sunday, November 8th, 2015

Via Bloomberg: Money-market rules may push $650 billion into safest assets Treasury's plans to increase bill issuance won't meet demand The blowout U.S. jobs report for October means the Federal Reserve may be weeks away from raising interest rates. For U.S. savers earning next to nothing on $2.6 trillion of money-market mutual funds, ...

Hard Times for the Rentier Class

Sunday, November 8th, 2015

Via the WSJ: By Justin Baer Nov. 8, 2015 8:00 p.m. ET 0 COMMENTS Wall Street bonuses are expected to drop for the first time in four years as financial firms reel from a choppy 2015, according to a closely watched study from consulting firm Johnson Associates Inc. Chaotic global markets harmed the returns of ...

Demand for Risky Credit Slips

Sunday, November 8th, 2015

Via WSJ: Wall Street banks are struggling to sell billions of dollars of loans they made to finance the corporate buyout boom, a sign that investor appetite for riskier debt remains muted despite a robust autumn rally in other financial markets. The slowdown threatens to cool the surge in mergers-and-acquisitions that has ...

Aging Baby Boomer Alert

Sunday, November 8th, 2015

Since the earliest days of this blog my "Aging Baby Boomer Alert" headline has always been reserved for the wonderful music of that period. Not so today. Jim Tankersley is an economics reporter for the Washington Post and he has penned a piece (too long to cut and paste in ...

Saudi Arabia to Keep on Pumping

Sunday, November 8th, 2015

Via the FT: Saudi Arabia is determined to stick to its policy of pumping enough oil to protect its global market share, despite the financial pain inflicted on the kingdom’s economy. Officials have told the Financial Times that the world’s largest exporter will produce enough oil to meet customer demand, indicating that ...

Challenging China Choices

Sunday, November 8th, 2015

Larry Summers with a trenchant article on the challenges China and the rest of the globe confront as China attains super power status. Via Larry Summers at the FT: For the first time in centuries, China now affects the global economy as much as it is affected by the global economy. In ...