Archive for April, 2016

IFO Dips

Monday, April 25th, 2016

Via the FT: an hour ago by: Joel Lewin German business sentiment dipped unexpectedly in April as the mood among exporters weakened slightly amid slowdowns in the US and China. The closely watched Ifo index, which tracks German business executives’ assessment of the current business climate, fell to 106.6, down from 106.7 in March ...

New Balance Sheet Tax

Monday, April 25th, 2016

Via Bloomberg: Jesse Hamilton April 22, 2016 — 6:16 PM EDT Rule would require lenders have long-term sources of funding Net Stable Funding Ratio is second part of liquidity controls   U.S. bank regulators are set to propose the second of two major demands on the amount of liquidity lenders need to have on hand to ...

Japanese Quandary

Monday, April 25th, 2016

Via Bloomberg: Bank of Japan will hold policy meeting on April 27-28 Slim majority of economists predict more BOJ stimulus With the challenges to Japan mounting, an increasing number of officials at the central bank consider it’s time for the government to do more to spur economic expansion, according to people ...

Interesting Lawsuit

Monday, April 25th, 2016

If this trader were in America he could run for President without any problem! Via Bloomberg: April 25, 2016 — 4:28 AM EDT Ben Lazimy seeks $2.5 million from bank for unfair dismissal Trader sent himself 1,400-page spreadsheet with client names   HSBC Holdings Plc was sued for unfair dismissal by an equity derivatives trader who ...

Early FX

Monday, April 25th, 2016

Via Kit Juckes at SocGen: The odds of this week's US FOMC meeting delivering a rate hike are zero, according to Bloomberg. The chances of a cut are higher, but only 2%. What matters is the tone of the statement but the Fed has painted itself into a corner. The odds ...

Breakevens on TIPS Creeping Wider

Sunday, April 24th, 2016

Via Bloomberg: Wes Goodman richwesgoodman April 24, 2016 — 9:43 PM EDT A gauge of inflation expectations in the bond market rose to the highest level in nine months as oil prices climbed, supporting the Federal Reserve’s plan to raise interest rates twice this year. The Fed will hold its benchmark ...

Leveraged China

Sunday, April 24th, 2016

Via the FT: 20 hours ago by: Gabriel Wildau in Shanghai and Don Weinland in Hong Kong China’s total debt rose to a record 237 per cent of gross domestic product in the first quarter, far above emerging-market counterparts, raising the risk of a financial crisis or a prolonged slowdown in growth, economists ...

Dealer Positions

Friday, April 22nd, 2016

Via Bloomberg: IG CREDIT: Dealer Positions in Corp Bonds Rise; 5-10Y Leads 2016-04-22 10:32:17.228 GMT By Robert Elson (Bloomberg) -- Dealer positions in corporate bonds rose $875m to $15.9b as of April 13, according to Fed NY release. * $6.5b low Oct. 2015; high $45.9b March 2014 * Investment grade positions: * Very short issues fell $114m to ...

Musings of a Permabear

Friday, April 22nd, 2016

Via the FT: Albert Edwards and the sadness of the permabear by: Joel Lewin Albert Edwards is sad. “Utterly depressed,” in fact. Earlier this month, he was warning of a “tidal wave of defaults”. Today, the SocGen permabear laments that “these central bankers will destroy the enfeebled world economy and political chaos will ...

Friday, April 22nd, 2016

Via Marc Chandler at Brown Brothers Harriman: Capital Markets Mostly Consolidate, Yen Drops The US dollar recovered from early weakness yesterday and is mostly trading narrowly mixed today The Japanese economy continues to struggle to sustain positive growth momentum The eurozone reported the flash PMI Canada reports February retail sales and ...