Central bankers are increasingly concerned about the possibility of low inflation expectations. But will those worries have an impact on the Federal Reserve’s December meeting? With the bank seemingly on autopilot for the rest of 2017, odds still favor a rate hike, yet if fears of falling inflation expectations gain more traction, look for policy makers to start downgrading rate-increase ...
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A small, right advance in the debate over guns
The National Rifle Association has finally found a device it will not unequivocally defend. The bump stock, which essentially turns a semi-automatic weapon into a machine gun and helped Stephen Paddock turn Sunday’s mass shooting in Las Vegas into the deadliest in modern US history, should be subject to “additional regulations,” the group said on Thursday. If congratulations are not ...
Read More »The Russia collusion you should care about
Forget Twitter trolls, Facebook ads and multilingual propaganda websites: The biggest Russian threat to Western democracies comes from the massive amounts of cash Russians have exported and parked in the West. That money’s corrupting potential is all but limitless, but both the increasingly isolationist Russia and the increasingly anti-Russian West do little to stem the flow. In a recent paper, ...
Read More »Boards behaving badly are now on notice in India
India’s company boards are due for another shakeup, and this time around investors should see some real change. The reason to place a higher burden of expectation on the Uday Kotak committee, which submitted its report to the stock-market regulator, is that it’s at least attempting to break away from a 20-year tradition of trying to fashion a modern corporate ...
Read More »Puerto Rico faces not just debt, but depopulation
“They owe a lot of money to your friends on Wall Street,†Donald Trump told Geraldo Rivera. “We’re going to have to wipe that out. That’s going to have to be—you know, you can say goodbye to that. I don’t know if it’s Goldman Sachs but whoever it is, you can wave goodbye to that.†Bond markets didn’t appreciate the ...
Read More »Deutsche Boerse plans revenue share deal to lure Brexit clearing
Bloomberg Deutsche Boerse AG’s clearinghouse plans to start a revenue-sharing plan with its biggest members in a bid to lure business from London after Brexit. The Eurex Clearing partnership program will reward its 10 most active participants with a share of revenue, and give board seats at the clearinghouse to the five largest. Deutsche Boerse has already received interest from ...
Read More »Bank of Italy prize near for Visco eyes second career feat
Bloomberg Ignazio Visco might be just days away from pulling off the second coup of his unexpected tenure at the helm of Italy’s central bank — by staying on. The Bank of Italy governor, selected out of the blue by then-premier Silvio Berlusconi in 2011 after weeks of speculation that hadn’t mentioned him, may be about to benefit from a ...
Read More »Reading PBOC signals takes ‘mosaic approach,’ says Goldman Sachs
Bloomberg China’s central bank could adjust monetary policy again in the coming months, in response to changes in the economy or the shifting agendas of top political leaders following the 19th Party Congress, according to Goldman Sachs Group Inc. For hints on how monetary policy will evolve, investors should piece together a range of abstract and irregular signals ranging from ...
Read More »HSBC seeks BOE nod for John Flint as CEO
Bloomberg HSBC Holdings Plc selected John Flint, head of retail banking and wealth management, to be the new chief executive officer and has asked the Bank of England for permission to make the appointment, the Sunday Times reported, citing people it didn’t identify. The London-based bank’s board approved 49-year-old Flint’s appointment after the arrival of new Chairman Mark Tucker last ...
Read More »Central banks try to avoid buzz kill as they pull punchbowl away
Bloomberg The world’s major central banks are declaring last orders at the punchbowl. The Federal Reserve — which has been raising interest rates since 2015 — takes the next step towards normalizing monetary policy this month when it starts to reduce its $4.5 trillion balance sheet. The European Central Bank is expected to soon lay out its own plans for ...
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