Sunday, September 15, 2019

Tag: Bank of England

Global debt climbs towards fresh high as companies and countries keep on borrowing

Global debt issuance is on course to hit a record high in 2016 as figures showed sales this year topped $5 trillion (£3.9 trillion) at the end of September. Debt issuance rose to $5.02 trillion in the nine months to September 22, according to Dealogic, putting 2016 on course to...

Get ready for the mother of all stock market corrections once central banks cease...

Global stock and bond markets have been all over the place of late. Rarely have investors been so lacking in conviction. Confusion as to future direction reigns, and with good reason after the spectacular returns of recent years. For how much longer can stock markets keep delivering? Is there another...

The Last Known Gold Mine

Gold is one of the rarest elements in the world, making up roughly 0.003 parts per million of the earth's crust. (For some perspective, one part per million, when converted into time, is equivalent to one minute in two years. Gold is even rarer than that.) If we took...

Bank of England shuts the door on a Fed rate hike this year

Any chance the Federal Reserve had of raising rates this year may have been quashed Thursday, with the impetus coming not from home but from the other side of the Atlantic. The Bank of England's decision to not only cut interest rates but to restart its money-printing program makes the...

Global QE running at record $180 bln per month, and rising

Eight years after the global financial crisis and years after the U.S. and British central banks stopped their quantitative easing bond-buying programmes, the amount of QE stimulus being pumped into the world financial system has never been higher. The European Central Bank and Bank of Japan are buying around $180...

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...

Bank of England Signals August Stimulus as Rate Kept at 0.5%

The Bank of England left its key interest rate at a record low and signaled it’s readying stimulus for August as the economy reels from Britain’s decision to quit the European Union. The nine-member Monetary Policy Committee, led by Governor Mark Carney, voted 8-1 to keep the benchmark at 0.5...

Pound sterling could slide below $1.20 because of Brexit, Goldman Sachs warns

Analysts have said the pound still has further to slide. The pound fell as low as $1.28 against the dollar in overnight trading after warnings about the financial stability of the UK after Brexit spooked investors. Sterling was trading at $1.29 in mid-morning trading on Tuesday, down 0.63 per cent on...

Brexit Accelerates the British Pound’s 100 Years of Debasement

In 1967, U.K. Prime Minister Harold Wilson declared devaluation wouldn’t diminish the “pound in your pocket.” Chancellor of the Exchequer Norman Lamont admitted he was heard “singing in the bath” after sterling’s link to the deutsche mark was severed in 1992, sending the currency tumbling. If history is any guide,...

Here’s why silver is shining brighter than gold

Silver prices hit a two-year high Monday, climbing above $21 an ounce, as the precious metal continues to gain from the safe-haven rally following the UK referendum, driven mostly by a sudden jump in Chinese demand. Asian buyers scooped up vast volumes of physical silver overnight, with the Shanghai Futures...

Soros Says Brexit Has Unleashed a Financial-Markets Crisis

Britain’s decision to leave the European Union has “unleashed” a crisis in financial markets similar to the global financial crisis of 2007 and 2008, George Soros told the European Parliament in Brussels. “This has been unfolding in slow motion, but Brexit will accelerate it. It is likely to reinforce the...

Westminster’s Squabbling Is Making Brexit Worse

The simple fact is that political uncertainty hurts the economy. And with chaos reigning in the U.K., the road ahead looks bumpy indeed. When the Brexit vote was still months away, veteran Conservative Party politician Kenneth Clarke predicted that, should David Cameron lose the campaign for Britain to stay within...

The monetary bubble to end all bubbles is coming

Central banks continue to create new money through quantitative easing. But should they? That’s the question both Harvard economist Terry Burnham and economics correspondent Paul Solman explore in two separate pieces. Below, Terry Burnham warns against quantitative easing. You can read Paul’s take on the issue, “Why the Fed should...

Brexit wipes $2tn off markets as Moody’s lowers UK credit rating outlook

Amid concerns that the EU referendum result risks sparking fresh financial crisis, Bank of England governor says it is ready to do whatever is needed. The ratings agency Moody's has lowered the outlook for the UK's credit rating from stable to negative amid what it said would prove a prolonged...

This is Brexit: London and European stocks get crushed

Stocks in London and Europe plunged headlong into some of their biggest falls in years after the U.K. voted to leave the European Union. As the day progressed, the market panic calmed down a bit and London's main FTSE 100 index recovered, closing with a loss of 3.2%. Earlier in...

Gold surges most in 2 years in panic buying after Brexit shock

Gold surged on Friday to its highest level in more than two years, and posted its biggest daily gain since 2008, as shaken investors snapped up the safe haven asset amid fears of further market turmoil after Britain shocked the world by voting to leave the European Union. Gold for...

The World’s Central Bankers Are Gathering At The BIS’ Basel Tower Ahead Of The...

What happens on the 18th floor of the main tower at Centralbahnplatz 2 in Basel, stays on the 18th floor of the main tower at Centralbahnplatz 2. That's because this is where every other month the world's central bankers meet in complete secrecy - no minutes are ever kept -...

Brexit, but Buy Gold

This Thursday — just 48 hours from now — the United Kingdom may soon make the greatest monetary blunder since 1925. That’s when Churchill returned sterling to gold at £4.25 per ounce, the pre-war price. Keynes warned Churchill a much higher price was needed to avoid deflation. Churchill ignored...

Soros Says China’s Economy Looks Like the U.S. Before the Crisis

Billionaire investor George Soros said China’s debt-fueled economy resembles the U.S. in 2007-08, before credit markets seized up and spurred a global recession. China’s March credit-growth figures should be viewed as a warning sign, Soros said at an Asia Society event in New York on Wednesday. The broadest measure of...

It’s lonely out there for central bankers in a low growth world

A blockbuster week for global monetary policy ended on a whimper and started with a bang. Central bankers round the world are realising their pump-priming policy actions are having a diminishing impact, an awkward insight just as they're forced to be more experimental and more risky. The next obvious trick is...

Global currency wars are threatening a Lehman-style crisis

Global currency markets made front-page headlines last week as the euro plunged towards parity with a surging dollar and the pound similarly soared against the single currency. But why is the dollar so buoyant and the euro spiralling downward? And should you lock in the strong pound by buying your...

Never Mind the Euro: Here’s the New Test of ECB Success

Corporate bonds will be a vital indicator of ECB progress from now on. Time to switch focus. Until now, the euro’s exchange rate has been closely tracked as an indicator of the effectiveness of the European Central Bank’s stimulus programs. Now eurozone corporate bonds are the crucial barometer investors need to...

Euro-dollar parity just a matter of time as single currency plunges to 12-year low

Single currency falls to 12 year low against the dollar, as analysts say parity is now inevitable. Euro-dollar parity is only a "matter of time", analysts said on Wednesday, after the single currency fell to a fresh 12-year low against the greenback. The euro dropped as low as $1.0560 against the...

Here’s What Happens if Britain Dumps the EU

A Brexit could make the U.K.'s special relationship with the United States a lot less special. The death of London as a financial center. A trade war between Germany and Britain. The possible collapse of a historic trade deal. When British voters head to the polls this summer to decide...

Euro depression is deliberate EU choice, says former Bank of England chief

Europe's deep economic malaise is the result of "deliberate" policy choices made by EU elites, according to the former governor of the Bank of England. Lord Mervyn King continued his scathing assault on Europe's economic and monetary union, having predicted the beleaguered currency zone will need to be dismantled to free...

Pound in Worst Day Since Banking Crisis as Brexit Fears Bite

The pound fell the most since the U.K.’s 2009 banking crisis after London Mayor Boris Johnson, one of the nation’s most popular politicians, said he’ll campaign for Britain to leave the European Union in a June referendum. Sterling dropped to its lowest level in almost seven years against the dollar,...

Dollar Posts Biggest 2-Day Drop Since March as 2016 Rally Erased

The dollar posted its biggest two-day drop since March, extending a decline that wiped out its rally at the start of the year. The greenback fell against all of its 16 major peers except the pound, which was weighed down by the Bank of England ’s unanimous vote to keep...

RBS cries ‘sell everything’ as deflationary crisis nears

Clients told to seek safety of Bonds and Treasuries. 'This is about return of capital, not return on capital. In a crowded hall, exit doors are small'. RBS has advised clients to brace for a “cataclysmic year” and a global deflationary crisis, warning that major stock markets could fall by...

US Fed raises interest rates by 0.25%

US Federal Reserve has raised interest rates by 0.25 percentage points, its first increase since 2006. The move takes the range of rates banks offer to lend to each other overnight - the Federal Funds rate - to between 0.25% and 0.5%. The US central bank also raised its projection for...

The Worth of Gold Growing by the Day

The worth of gold in the world is growing by the day. That might seem like a paradox but it isn’t. The worth of gold is not fixed on the Comex futures exchange, or the trade in London or Zurich. True, most of the gold-trading public takes its cue...

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