<Click on chart for larger image> AQA – Peter Forbes: Yuan Weakening While The World Looks Elsewhere The Chinese Yuan has weakened 1.1% against the US Dollar since the last FOMC meeting. We notice a pattern where the PBOC has allowed the Yuan to weaken in advance of December tightening moves by the FOMC. Under… Continue reading Yuan Weakening While The World Looks Elsewhere
National Review – The crazy world of negative interest rates. Freeman: In one estimate I saw, there is now $10 trillion of negative-rate debt sloshing around. If it’s designed to be a demand-side incentive, how has it performed in the real world? Is it working? Grant: Sub-zero rates have unleashed no new wave of spending.… Continue reading An Interview With James Grant
Bloomberg View – Mess With Central-Bank Independence at Your Peril In most of the developed world, central banks are free to set monetary policy without the interference of those who depend on voters for their employment. That independence, though, is “not set in stone,” as former Federal Reserve Chairman Alan Greenspan noted in his September 2007… Continue reading Central Bank Independence
Bloomberg Business – The ECB Can’t Risk a Taper Tantrum The ECB isn’t expected to announce any changes tomorrow after its regular policy meeting. But Mario Draghi is likely to face some tough questions in the press conference, particularly on the topic of whether the central bank is poised to begin tapering its efforts. Getting… Continue reading The ECB And The Risk Of A Taper Tantrum
<Click on graphic for larger image> Bloomberg Business – Hedge Fund Launches Dwindle to 16-Year Low as Returns Lag Hedge fund startups, which were surging a decade ago, have fallen off a cliff in 2016 and are heading for their worst year since 2000, according to Eurekahedge. Globally, there have been just 457 fund launches through the… Continue reading No One Is Starting A Hedge Fund This Year
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Comment On October 20, 2016 9 AM CT (10 AM ET, 7 AM PT and 15:00 BST) Bianco Research, in conjunction with Arbor Research & Trading, will be hosting a webcast/teleconference moderated by Jim Bianco. Join us Thursday as we discuss the issues that will affect the markets as we near 2017, including earnings forecasts,… Continue reading Looking To 2017
Mauldin Economics – Brace Yourself for the Quadrillion-Dollar Reckoning … To tap the wisdom of Jim Bianco of Bianco Research, central bank bond buying has become fungible. As long as the buying continues, it really doesn’t matter who’s picking up the QE tab. To that end, over $2 trillion in global QE purchases have taken place in… Continue reading Why All Central Bank Stimulus Is Fungible
<Click on chart for larger image> The Wall Street Journal – Fed Officials Make Case to Hold Rate Rise Until December A number of Federal Reserve officials are building a case to skip over the November policy meeting and raise short-term rates again in December, aligning the central bank with financial market expectations. In interviews and… Continue reading Timing The Next Rate Hike
Bloomberg Business – Fed’s Fischer Says Fiscal Policy Could Help Fight Low Growth Federal Reserve Vice Chairman Stanley Fischer said government policies could partly counteract the impact of lower productivity and an aging population that are holding back the U.S. economy and weighing on interest rates. “Some combination of more encouragement for private investment, improved public… Continue reading Stanley Fischer Lays Out A Plan To Fight Low Growth
The Telegraph (UK) – Central bankers have collectively lost the plot. They must raise interest rates or face their doom Theresa May warned in her conference speech about low interest rates fuelling inequality. Donald Trump rages against the chair of the Fed, Janet Yellen. Germans are restive about the lax monetary policy of the ECB. What… Continue reading Why Central Banks Need To Raise Rates
Bloomberg Business – Mark Cudmore: Yellen Fluffed Her Lines (no link) Yellen’s tentative communication approach won’t inspire economic confidence and is yet another example of the Fed fumbling policy execution. • Yellen’s speech on Friday pondered the idea of leaving the economy to run “hot” in the hope that it might repair some of the damage caused… Continue reading More From Yellen’s Speech Last Week