Thursday, January 18, 2018

Bond Investors Are Banking on Fed Fear of Market Chaos

Bond bulls are looking to the Federal Reserve’s decision Wednesday for vindication as Treasuries head for their best month in a year. The Fed is set to release its first policy statement since it raised interest rates from near zero last month. After January’s 1.7 percent rally in Treasuries, bond...

TTIP Must Die So the West Can Live

Free-market evangelists say the U.S.-EU trade deal is essential to the future of transatlantic diplomacy. But dangerous economics could unravel centuries of partnership. In the last few years, almost everyone invested in Europe’s relationship with the United States, and vice versa, has become fixated on the free trade agreement known...

Bank of Japan surprises with negative interest rate

The Bank of Japan on Friday introduced a negative interest rate policy, a move aimed at boosting a stumbling economic recovery and warding off deflation. Markets jumped on the intervention. Tokyo's central bank hopes that by imposing a 0.1% fee on selected current account deposits — effectively a negative interest...

Wall Street Is in Charge in Argentina (Again)

Hours after Argentina cut a deal with New York hedge funds to end a nasty, 15-year-old debt dispute, the government’s top economic officials took to the podium in Buenos Aires to bask in the moment. First to speak that February evening was the finance minister, Alfonso Prat-Gay. He’s an old...

Why are Russia and China Buying Gold, Tons of it?

Gold is one of the most fascinating of all rare metals. Throughout all history it has been given a special, at times sacred or spiritual value, since six thousand years ago when the Egyptian Pharoahs’ tombs were filled with it to accompany the dead on their journey. In times...

Yen Debate Is Stirred Up by Fed’s Hawkish Talk at Jackson Hole

Japanese currency has slid since gathering of Fed bankers last week, but major investors are still betting on yen to rise. Japanese policy makers eager to see the yen weaken may be thankful for the latest bout of hawkishness on U.S. interest rates from top Federal Reserve officials. For many market...

After the leaks showing what it stands for, this could be the end for...

The documents show that US corporations will be granted unprecedented powers over any new public health or safety regulations to be introduced in future. If any European government does dare to bring in laws to raise social or environmental standards, TTIP will grant US investors the right to sue...

Will the U.S. Break This Fundamental Law of Finance?

Economists long said it couldn’t be done. But the Bank of Japan is doing it, as are central banks in Switzerland, Sweden, and Denmark. So is the European Central Bank. And U.S. Federal Reserve Chief Janet Yellen won’t rule it out. The “it” in question is setting negative interest rates...

An exorbitant privilege? Implications of reserve currencies for competitiveness

Could the US prioritize domestic growth and jobs over its global responsibilities, sparking greater currency volatility that threatens competitiveness? Sharp exchange rate volatility is a sign of stress in the world currency system and has reignited debate about whether the dollar will continue to be the world's primary reserve currency...

Top 5 Hedge Fund Earners

The top 25 hedge fund managers reaped $11.62 billion in compensation in 2014, according to an annual ranking by Institutional Investor’s Alpha magazine. The pay estimates are based on the value of each manager’s stake in his firm and the fees charged. Investors in hedge funds generally pay an annual...

Bayer Said to Explore Bid for $40 Billion Seed Company Monsanto

Bayer AG is exploring a potential bid for U.S. competitor Monsanto Co. in a deal that would create the world’s largest supplier of seeds and farm chemicals, according to people familiar with the matter. The German firm has held preliminary discussions internally and with advisers about buying Monsanto, which has...

Understanding Deutsche Bank’s $47 Trillion Derivatives Book

Size of figure can be misleading, but some of those assets are hard to value, stoking concern among investors. Shares in Deutsche Bank AG have fallen by more than 48% this year amid concerns that the lender faces a hefty fine from the Justice Department and as its core lending...

“There Will Be a More Volatile Crisis”: JPMorgan Chief Signals Coming Financial Tsunami

Earth shaking words from a giant on Wall Street. The insiders know the next collapse is coming. What form it takes may remain a surprise to account holders and investors who are not on guard. But JPMorgan Chase chairman and CEO Jamie Dimon is positioning his firm to pick up the...

ECB cuts interest rates to zero amid fears of fresh economic crash

New ultra-cheap loans to banks among unprecedented package of measures as Mario Draghi seeks to jump-start economy. The European Central Bank has cut interest rates across the eurozone to zero as it unveiled an unprecedented package of growth-boosting measures against the backdrop of a fragile global economy. Amid growing concerns of...

The central bank that cried wolf: The Fed’s credibility gap is getting wider

If Fed policy was a fairy tale, the title might be "The Central Bank That Cried Wolf." Investors have watched in bemusement as Fed officials throughout the past several years have warned that policy would change, only to back down at the slightest sign of turbulence. It now appears the...

Dollar falls for second week as central banks spur risk appetite

The dollar rose against a basket of currencies on Friday, bolstered by an increased appetite for riskier assets following unexpected action from the European and Chinese central banks. Despite Friday's gains, the dollar index still moved lower for the second straight week with most of the losses coming after Thursday's...

Apple in line of fire if trade wars start

Trump's decision to scrap Trans-Pacific Partnership is a lost opportunity for tech. There aren’t many politicians in the US right now who are prepared to shed public tears over abandoned trade deals. So when president-elect Donald Trump declared this week that the US, under his administration, would drop its support for...

Why Wells Fargo’s Executives Will Keep Their Bonuses, Even After Fake Accounts Scandal

Last week, Wells Fargo CEO John Stumpf testified before the Senate Banking Committee after the bank paid fines for creating over 2 million fake customer accounts to boost their sales growth statistics. Stumpf, under fire from senators demanding that the bank claw back executive bonuses as punishment for the scandal,...

Venezuela is on the brink of a complete economic collapse

The only question now is whether Venezuela's government or economy will completely collapse first. The key word there is "completely." Both are well into their death throes. Indeed, Venezuela's ruling party just lost congressional elections that gave the opposition a veto-proof majority, and it's hard to see that getting any better for...

The Collapse of the Western Fiat Monetary System may have Begun. China, Russia and...

On 19 April 2016, China was rolling out its new gold-backed yuan. Russia’s ruble has been fully supported by gold for the last couple of years. Nobody in the western media talks about it. Why would they? – A western reader may start wondering why he is constantly stressed...

Has a Currency Collapse Already Started?

Yesterday, oil plummeted to its lowest level in nearly seven years... The price of oil fell 6.2% to $37.65, its lowest level since February 2009. Oil has now fallen an incredible 65% since peaking at $106 in June 2014. The world has a massive oil surplus right now. The oil stockpiles...

A Key Similarity Between Snowden Leak and Panama Papers: Scandal Is What’s Been Legalized

FROM THE START of the reporting based on Edward Snowden’s leaked document archive, government defenders insisted that no illegal behavior was revealed. That was always false: Multiple courts have now found the domestic metadata spying program in violation of the Constitution and relevant statutes and have issued similar rulings for other mass surveillance programs;...

Analyst: Here Comes the Biggest Stock Market Crash in a Generation

You don’t have to listen very hard to hear the bears growling on Wall Street, London, or Paris these days. Indeed, the Dow Jones Industrial Average was down another 300 points on Wednesday to just under 16,200 With the U.S. stock market sagging, oil off to its worst start ever,...

Asia markets capitulate as UK votes to leave European Union

Asian stocks cratered, gold prices surged and the dollar briefly plunged below 100 against the yen on Friday as financial markets were rocked by results from the UK referendum on European Union (EU) membership that pointed to a Brexit. The UK voted to leave the EU, a dramatic turn that...

Why is the gold price rising? Five forces driving the precious metal

Hoarding gold is a centuries-old reaction to times of crisis, and the aftermath of the EU referendum vote is no different. The yellow metal has soared in value since Britain voted to leave the European Union as investors shoot towards traditional "safe haven" assets. Prices have reached a three-year high as Brexit worries intensify. An ounce of gold is now worth...

ECB splurge sets off new currency war

Investors are paying a great deal more attention to the machinations being played out in foreign exchange markets, particularly after turbulence this week saw the Australian dollar surge above US75¢ while its New Zealand counterpart tumbled. Traders have turned decidedly bullish on the Aussie dollar, which has risen 10 per...

ECB can only buy time, not solve eurozone growth woes

Mario Draghi’s efforts will count for little without structural reforms and more aggressive use of fiscal policy by European governments. For most of its short life, the European Central Bank fretted about inflation being too high. Now it has the opposite concern. The fear of deflation explains the package of measures...

Six Banks Pay $5.8 Billion, Five Guilty of Market Rigging

Six of the world’s biggest banks will pay $5.8 billion and five of them agreed to plead guilty to charges tied to a currency-rigging probe as they seek to wind down almost half a decade of enforcement actions. Citicorp, JPMorgan Chase & Co., Barclays Plc and Royal Bank of Scotland...

Half of Japan firms see no escape from deflation this year: Reuters poll

Around half of Japanese firms believe their country will have failed to rid itself of deflation a year from now, a Reuters poll shows, a sign that authorities are not gaining the traction they want as they battle an entrenched deflationary mindset. Since the 1990s, deflation - sustained and broad...

Why Gold Is Now In A New Bull Market

Investors’ interest in gold peaked in September 2011, when it was generally agreed upon that the endless rounds of quantitative easing policies by the world’s central banks will result in rising inflationary pressures, while concerns over a potential Euro Zone break-up ran rampant, as government finances in countries such...

Article Filter Options