November, 2019

• 5 November

  Dollar’s bad month good for economy

  

  There’s been some chatter in markets that the rebound in equities in October and a re-steepening of the Treasury market’s yield curve are signs that investors believe the global economic outlook is looking up – or at least not getting any worse. As indicators go, those are fine, but perhaps the most telling may be the dollar. The Bloomberg Dollar ...

  Read More »
• 5 November

  Futures are pulling cryptocurrencies out of the dark

  

  People have a love-hate relationship with the futures markets. Futures are either financial drivers of rapid economic growth, turbocharging small amounts of capital to outflank entrenched barriers to innovation, or — to a populist — they are demonic pits where speculators manipulate prices and corrupt honest real economic activity. Since people also love or hate cryptocurrency, the rise of Bitcoin ...

  Read More »
• 5 November

  US equity futures gain with stocks; Treasuries retreat

  

  Bloomberg US equity futures climbed with European and Asian stocks as investors took confidence from signs that America and China are inching towards a trade deal. Treasuries fell, while the yuan strengthened past 7 for the first time since August. Contracts on the S&P 500, Dow Industrials and Nasdaq 100 all pointed to a positive start on Wall Street, following ...

  Read More »
• 5 November

  China pros calling time on yuan surge past 7 per dollar

  

  Bloomberg China’s yuan rallied past 7 per dollar and analysts are already warning the strength won’t last. The currency jumped as much as 0.60% to 6.9880 a dollar on Tuesday, trading stronger than the key level for the first time since August. The offshore rate rose as much 0.66%. The level had been a key support for the currency for ...

  Read More »
• 5 November

  Fed’s pause on interest rates divides Wall Street strategists

  

  Bloomberg As the Federal Reserve signals it’s satisfied after pulling off a mid-cycle easing, Wall Street’s rate strategists are as divided as ever on the direction of Treasury yields. JPMorgan Chase & Co strategist Nikolaos Panigirtzoglou warned that 10-year yields may surge 100 basis points over the next six months given the Fed is now done with its “insurance” cuts. ...

  Read More »
• 5 November

  Malaysia central bank keeps rate unchanged

  

  Bloomberg Malaysia’s central bank kept its benchmark interest rate unchanged, giving itself policy space to act in coming months if the global economy worsens. The central bank held its overnight rate at 3% at its final meeting for the year, as predicted by 16 of the 25 economists surveyed by Bloomberg. The remaining nine had expected a 25 basis-point cut. ...

  Read More »
• 5 November

  ‘Low rate makes fiscal spending poweful’

  

  Bloomberg Bank of Japan Governor Haruhiko Kuroda stepped into the global debate about whether governments need to do more heavy lifting to support their economies, saying that the ultra-low interest environment created by Japan’s central bank makes fiscal spending more powerful. Kuroda said the BOJ wasn’t planning to add to its stimulus in tandem with some form of government spending ...

  Read More »
• 5 November

  HSBC says it’s time to sell off risk assets

  

  Bloomberg A combination of mixed macroeconomic data and stretched investor sentiment suggests it’s time to sell risk assets, according to HSBC Holdings Plc. “Fundamentally, the macro data does not justify the recent outperformance of risk assets,” wrote strategists including Max Kettner in a note to clients. “We think risk assets are ripe for a pullback in the coming weeks.” The ...

  Read More »
• 5 November

  Brazil central bank cautious about ‘easing cycle’

  Bloomberg Brazil’s central bank refrained from providing guidance on its easing cycle beyond its next policy meeting in December, opting instead to signal it will remain cautious in efforts to add stimulus to a weak economy. A benign consumer price outlook should allow for another rate cut “of the same magnitude” next month, the central bank board wrote in the ...

  Read More »
• 5 November

  Goldman’s CEO joins critic of Europe’s negative rate policy

  

  Bloomberg Goldman Sachs Group Inc, stung by losses in Uber Technologies Inc and WeWork, has a message for investors in growth stocks: profit matters. After years of pursuing revenue growth at all costs, driven by cheap money, markets are increasingly focusing on whether companies can translate top line expansion into profitability, Chief Executive Officer David Solomon said in a wide-ranging ...

  Read More »