Reuters (December 13)
“A final Brexit without a trade deal would damage the economies of Europe, send shockwaves through financial markets, snarl borders and sow chaos through the delicate supply chains across Europe and beyond.” British Prime Minister Boris Johnson and EU Commission President Ursula von der Leyen agreed to extend talks beyond Sunday. “With a succession of deadlines missed, time is now critically short.”
Tags: Borders Chaos, Brexit, Damage, Europe, Financial markets, Johnson, Leyen, Shockwaves, Supply chains, Trade deal, UK
Reuters (March 9)
Two black swans have collided. “Financial markets have been thrown into turmoil following Saudi Arabia’s response to the collapse of OPEC+ talks and concerns about the global spread of the coronavirus.”
Tags: Black swans, Collapse, Collided, Financial markets, OPEC, Saudi Arabia, Turmoil
Wall Street Journal (August 1)
“President Trump moved Thursday to extend tariffs to essentially all Chinese imports, escalating a trade conflict that is poised to hit U.S. consumers in the pocketbook and roiling financial markets…. Wall Street was rattled by the news.” The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all closed lower. “Oil prices sank almost 8%, their biggest drop since February 2015.”
Tags: China, Dow Jones, Financial markets, Imports, Nasdaq, Oil, Rattled, Tariffs, Trade conflict, Trump, U.S. consumers, Wall Street
Wall Street Journal (April 27)
“With the comeback in financial markets this year, we probably should have seen it coming. But the headline rebound in first quarter growth to 3.2% reported Friday is still a pleasant surprise that shows again that the U.S. economy is remarkably resilient when government doesn’t get in the way.”
Tags: Comeback, Economy, Financial markets, Government, Q1, Rebound, Resilient, U.S.
Institutional Investor (February 18)
“Are currency traders destined for extinction? Their ranks are thinning quickly, as computers take over their tasks and banks pull back from activity in financial markets. The trend is likely to continue and market volatility is likely to increase as a result, analysts say.”
Wall Street Journal (December 16)
“Financial markets took the Federal Reserve’s interest-rate ‘liftoff’ from near-zero in stride on Wednesday, broadly celebrating the 25 basis point increase in the federal-funds rate.” Given the late timing of the rise, however, this is very much unchartered territory. “The truth is that few people in financial markets are confident that anyone knows how this gradual return to monetary normalcy will turn out.”
Tags: Basis points, Fed, Federal-funds rate, Financial markets, Increase, Interest rates, Monetary, Near-zero, Normalcy
Institutional Investor (December 8)
“COP21 is an important turning point for the global economy and the financial markets that underpin it. Smart investors will not only examine the risks but also clearly appreciate the opportunities in this space, as our $100 trillion economy embarks upon a decarbonization trajectory over the next two generations.”
Tags: COP21, Decarbonization, Financial markets, Global economy, Investors, Opportunities, Risks, Turning-point
Institutional Investor (October 13)
“Volatility is back in financial markets after an extended absence—and you had better get used to it.” To be more precise, this is a return to normal levels of volatility after a period of excessive lows. “To accentuate the positive, elevated volatility will create some excellent buying opportunities.”
Wall Street Journal (August 7)
In China, the Government is estimated to have spent more than 10% of GDP ($1.3 trillion) “since the market panic started in late June,” producing only questionable results. “The failed bailout reinforces the expectation that Beijing will attempt to manage the financial markets in the future. This moral hazard means the volatility will continue, along with the costs of future bailouts. The first lesson of investing, buyer beware, has yet to be learned in China.”
Tags: Bailouts, Beijing, China, Financial markets, GDP, Government, Moral hazard, Panic, Volatility
Financial Times (June 25)
“For thrill and spills, you cannot beat Chinese share markets. Recent wild price swings on the Shanghai and Shenzhen bourses—and the fortunes being made, or lost, by individual retail investors—have made for gripping tales. They have raised fears of a highly-inflated equity bubble about to burst spectacularly. But how much should the rest of the world worry?” This shouldn’t simply be shrugged off “as a local story without wider significance for global financial markets.” The volatility should reinforce concerns that China is “in a bumpy economic transition phase that threatens significant ripple effects in distant parts of the world.”
Tags: Economic transition, Equity bubble, Financial markets, Markets, Price Swings, Retail investors, Shanghai, Shares, Shenzhen
