Institutional Investor (October 21)
“Negative interest rates are nothing new in Europe, where some central banks have effectively been charging depositors since 2014. But if rates stay below zero much longer, the region’s banks and institutional investors may have to rethink their portfolios to keep afloat.”
Tags: Banks, Central banks, Depositors, Europe, Institutional investors, Negative interest, Portfolios, Rates
Reuters (September 13)
With cargo trapped and delayed, the Hanjin bankruptcy is creating giant supply chain ripple effects. “Consumers should start preparing to pay more for holiday cheer this year. Experts predict that Hanjin ships won’t emerge from receivership until after the holiday season.” Temporarily, at least, that’s good for other shipping companies. “Space is suddenly at a premium…Rates could spike 50 percent as soon as October.”
Tags: Bankruptcy, Cargo, Consumers, Hanjin, Premium, Rates, Shipping companies
Institutional Investor (April 23)
“Rate announcements by the Federal Reserve and the Bank of Japan will loom large this coming week as investors consider the alternate reality of negative interest rates. Meanwhile, key economic indicators for onetime BRIC stars Russia and Brazil will arrive as each suffers from the weight of low oil prices and Brazil deals with domestic political intrigue surrounding the impeachment of President Dilma Rousseff.”
Tags: Announcements, BOJ, Brazil, BRICS, Economic indicators, Fed, Impeachment, Negative interest, Oil, Rates, Rousseff, Russia
Financial Times (April 12)
“There are clear practical limits to cutting rates indefinitely; and in the eurozone at least, the policy may be close to its political limits. The question now is what should take its place…. Opponents of negative rates need to spell out the alternatives.”
Tags: Alternatives, eurozone, Limits, Negative rates, Opponents, Rates
Wall Street Journal (January 21)
“Amid China’s economic tremors, political uncertainty in the U.S. and policy sclerosis in Europe, ECB President Mario Draghi is the only policy maker in town who seems determined to keep the party going.” While the European Central Bank (ECB) left rates and its quantitative easing program unchanged, Draghi the “lonely agent of good cheer” suggested the ECB would review its policy, possibly easing the spigot as early as March.
Institutional Investor (June 20)
The Fed and many others are underestimating “the true strength of the economy and the underlying structural evolution that is at play as a result of technological change…. As inflation firms in the months ahead, it will become abundantly clear that the Fed has had a window of opportunity to move on rates.”
Tags: Economy, Fed, Inflation, Rates, Structural evolution, Technological change
