Wednesday, June 19, 2019

Tag: Sterling

Bonds bloodied as Trump spending plans spur dollar

Routs in global bonds and emerging markets intensified, while the dollar climbed with base metals as investors positioned for the wave of fiscal stimulus that Donald Trump has pledged to unleash. The yield on 30-year Treasuries rose to the highest since January, with last week’s record debt selloff bleeding into...

A Weaker Currency Is No Longer Economic Elixir It Once Was

A weaker currency, once the cure-all for ailing economies around the world, isn’t the panacea it once was. Just look at Japan, where the yen plunged 28 percent in the two years through 2014, yet net exports to America still fell by 10 percent. Or at the U.K., where the...

Lord Rothschild: This Is The Greatest Experiment In Monetary Policy In The History Of...

Two months ago, the bond manager of what was once the world's biggest bond fund had a dire prediction about how "all of this" will end (spoiler: not well). Gross: Global yields lowest in 500 years of recorded history. $10 trillion of neg. rate bonds. This is a supernova that...

What China’s SDR Bond Issue Really Means

This is the first step toward one world currency. They promised, they delivered. The World Bank will issue a $2.8 billion SDR bond, or Special Drawing Rights bond, in China in August. Separately, the China Development Bank will also issue between $300 million and $800 million of SDR notes. China, the...

SDR bonds are China’s next step to take yuan global

SHANGHAI -- With the yuan set to enter the Special Drawing Rights currency basket in October, China looks to create a market for SDR-denominated bonds as a step toward internationalizing the country's currency. The government-linked China Development Bank as early as this month will issue $300 million to $800 million...

How China’s Currency Manipulation Enhances the Global Role of the U.S. Dollar

But it's not quite that simple. In fact, Beijing benefits from the dollar’s dominance. On April 16, Zhou Xiaochuan, the governor of China’s central bank, the People’s Bank of China, once again set off alarm bells during a speech at the International Monetary Fund (IMF). “Starting from this April,” he...

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...

Meet the Motley Crew Charged With Seeing Britain Out of the EU

The new government has no fewer than five officials appointed to implement the Brexit. And no one — including them — knows how they’re going to do it. The prime minister who took power because of the Brexit just formed a cabinet shaped by the Brexit — but it’s not...

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,...

Britain’s Plummeting Pound Is Bad News for America

Fallout from Britain's decision to leave the European Union continued Tuesday, with the once-powerful pound falling to its lowest levels against the U.S. dollar in three decades. This is bad news for Britons, who have seen the value of their currency drop to  $1.30 vs. the dollar — on June...

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...
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Alan Greenspan on Brexit, U.S. Economy, and Inflation

Former Federal Reserve Chairman Alan Greenspan discusses fallout the U.K.'s Brexit referendum, U.S. economic growth, wage and economic stagnation, central banks, low productivity, and his call for inflation in the U.S. economy. He speaks with Bloomberg's Michael McKee and Tom Keene on Bloomberg. U.K. policy makers miscalculated and made a...

S&P Strips U.K. of Triple-A Credit Rating

Credit rater cuts the country’s debt by two notches; ratings outlook is negative. Standard & Poor’s Global Ratings stripped the U.K. of its pristine triple-A credit rating on Monday, following through on its warning that last week’s vote to leave the European Union threatens the country’s constitutional and economic integrity. The...

U.S. Stocks Fall With Global Shares, Pound on Brexit; Gold Gains

The aftershocks of the U.K.’s vote to leave the European Union reverberated across financial markets after a weekend of political turmoil, with the pound extending its record selloff and European equities dropping to levels last seen in February. The S&P 500 dropped 1.8 percent to the lowest since mid-March, while...

A Stunning Email About Brexit Vote As Elites Panic And Global Collapse Edges Closer

After the stunning Brexit vote to “Leave” the EU followed by turmoil in world markets, today the man who has become legendary for his predictions on QE, historic moves in currencies, and major global events, warned the elites are now panicking as global collapse edges closer. But first, the powerful...

Pound plunges to 30-year low against dollar, yen surges as UK votes to Brexit

The pound plunged to a more-than-30-year low against the dollar on Friday and the safe-haven yen surged as results of the referendum on whether to stay in the European Union (EU) showed the U.K. was on course to leave. It was confirmed on Friday that Britain had voted to leave...

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...

Mapped: Brexit’s Aftermath

After Britain’s vote to leave the EU, stock prices are suffering on major indices around the world. FP surveys the damage. The United Kingdom’s decision to leave the European Union sent world markets spiraling downward Friday. Across the globe, nearly every major stock index turned red. Shockwaves from the so-called Brexit...

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...

HSBC: Gold will explode if Britain votes for a Brexit

Gold prices are likely to explode if Britons vote to leave the European Union when they go to the polls next Thursday, gaining as much as 10% in a short space of time. Gold is seen as a haven for cash. It does not pay a coupon like a bond,...

China Quietly Prepares Golden Alternative to Dollar System

China, as current chair of the G-20 group of nations, called on France to organize a very special conference in Paris. The fact such a conference would even take place in an OECD country is a sign of how weakened the hegemony of the US-dominated Dollar System has become. On...

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...

China’s obsession with IMF’s accounting unit and forging new global financial order reaches new...

Beijing is reviving efforts to broaden use of Special Drawing Rights to achieve longstanding strategic aim of dethroning US dollar in international monetary system. It is just one line in a foreign exchange document, but it signals a renewed seriousness. Last week, China's central bank started publishing the nation’s foreign exchange...

China SDR announcement enshrines move away from its dollar focus

China pushes a multicurrency reserve system at heart of the world’s financial order. China's utterances over the years on the International Monetary Fund's special drawing rights confirm the Beijing authorities’ reputation for long-term thinking as well their ability to create riddles on what the goals actually are. The mystery is starting...

Why a British Exit From the EU Should Worry Israel

A Britain outside the EU means Israel will lose an important insider voice and critical traction in the shifting and sometimes hostile EU debates about what policies to adopt toward Israel. It will, of course, be an internal, domestic decision for the United Kingdom’s voters on June 23 when they...

James Rickards: You Are Going to See World Money

Why a reform of the financial system is inevitable, with or without crisis. An introduction to lawyer, portfolio manager, government adviser, lecturer, and author James Rickards could easily be five pages long. Sifting through his CV, it’s easier to pick the things he doesn’t do rather than listing all the...

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...

Brexit could deal major economic, political blow to EU

The European Union could lose its second-largest economy if the UK decides to leave, taking a potentially major economic and political blow at a time when the EU already faces slowing economic growth and an ongoing refugee crisis. The UK is scheduled to hold a referendum on June 23 asking...

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