The Wall Street Journal – Swiss Central Bank Introduces Negative Interest Rates Switzerland’s central bank on Thursday said it would introduce negative interest rates next year, a measure designed to cool the strength of the Swiss franc and ward off deflation. Beginning Jan. 22, the Swiss National Bank will charge banks 0.25% to deposit overnight… Continue reading Negative Rates For Swiss Central Bank
<Click on chart for larger image> The Wall Street Journal – China’s Short-Term Borrowing Costs Surge as Demand for Money Grows Short-term borrowing costs in China soared Thursday as demand for cash surged due to a number of new stock offerings and the year-end shopping spree. A recent ruling that bans the use of lower-grade… Continue reading A Sign Of Speculative Fervor In China?
Council Foreign Relations – What Did the Greenspan Fed Do with Its “Considerable Time” Pledge in ’04? The big question for the December 16-17 FOMC meeting is whether to drop the pledge to keep rates at near-zero for a “considerable time.” Prior to the last meeting in October, two-thirds of primary dealers expected that language… Continue reading A Look At Inflation & Unemployment vs. Monetary Policy
<Click on chart for larger image> The Wall Street Journal – NYSE Plan Would Revamp Trading The owner of the New York Stock Exchange is pushing a major overhaul of the U.S. stock market aimed at helping exchanges reclaim their role at the center of trading. Intercontinental Exchange Inc. is proposing a compromise between exchanges… Continue reading NYSE Takes Aim At Dark Pools
Conference Call Presentation/Charts of the Week Topics Covered This Week Include: The Market versus The Fed’s “Dots” Next Year’s Voters … Very Dovish Russia What Drives Crude? World Growth Forecasts Country/Region Growth Forecasts Earnings And Revenues Forecasts Take A Hit Everyone Is Still Bearish Bonds Bad Year To Be Bond Bearish Stock Outlook Credit Outlook
Real Time Economics – JON HILSENRATH: HOW YELLEN’S METHODICAL STYLE INFORMS THE “CONSIDERABLE TIME” DEBATE As I see it, one of two headlines will come out of today’s policy meeting at the Federal Reserve. The Fed could drop its assurance that short-term interest rates will remain low for a “considerable time.” If it does that,… Continue reading Today’s FOMC Decision
<Click on chart for larger image> Bloomberg.com – The Collapse of Putin’s Economic System The foundations on which Vladimir Putin built his 15 years in charge of Russia are giving way. The meltdown of the ruble, which has plunged 18 percent against the dollar in the last two days alone, is endangering the mantra of… Continue reading The Russian Economy
<Click on chart for larger image> Bloomberg.com – China’s Treasury Holdings Fall to Lowest Since February 2013 China’s holdings of U.S. Treasuries fell to a 20-month low in October, as yuan appreciation indicated less of an impetus to buy the government securities. China held $1.25 trillion in U.S. debt as of October, a $13.6 billion… Continue reading China’s Treasury Holdings Falls
<Click on chart for larger image> The Wall Street Journal – U.S. Oil Prices Resume Slide Ahead of Stockpile Data Contributing to the bearish sentiment was data from the American Petroleum Institute late Tuesday which showed an unexpected 1.9-million-barrel rise in weekly U.S. oil stockpiles. The market is awaiting stockpile data from the U.S. Energy… Continue reading Oil Prices Continue To Fall
<Click on chart for larger image> The Financial Times – Fed meeting may add to pressure on emerging markets The US Federal Reserve could turn the screw even tighter on emerging markets on Wednesday by ignoring their struggles and ditching its pledge of low rates for a “considerable time”. A collision between excellent US data… Continue reading How The Fed Decision Affects Emerging Markets
The Wall Street Journal – Oil Is Dragging Down Prices Faster Than Official Price Index Can Capture Consumer prices around the world are pulling back so rapidly, along with the collapse of oil prices, that official measures of inflation have yet to capture the magnitude of the decline. But the Billion Prices Project, which scrapes… Continue reading Oil Prices And Inflation