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Reuters (March 23)

2020/ 03/ 24 by jd in Global News

“China is consciously uncoupling from Western peers on rates. Its central bank has held lending benchmarks steady as global peers slash…. The People’s Bank of China’s relative immobility has surprised many economists…. The spread between 10-year Chinese government bonds and U.S. Treasuries is nearly two percentage points, its widest since 2015.”


Reuters (October 4)

2018/ 10/ 07 by jd in Global News

Though Ireland still expects negative impacts from Brexit, the country is busy making lemonade with what otherwise might just be lemons. “Ireland’s central bank has seen a surge in financial services firms seeking to set up or extend their operations in Ireland as a result of Brexit and is processing over 100 applications.” So far, Barclays, Legal & General Investment Management and Standard Life Aberdeen are among the companies who have chosen Dublin as a post-Brexit base.”


Reuters (August 29)

2018/ 08/ 30 by jd in Global News

“The prospect of a no-deal Brexit is becoming increasingly feasible in the eyes of investors who are hedging against the risk of the currency tanking if Britain is left isolated from the EU, its largest trading partner.” Bank of America Merrill Lynch has warned that central bank selling of more than 100 billion pounds in reserves “could be a major catalyst for a significant sterling downturn” should the UK leave the EU without a deal.


The Economist (August 25)

2018/ 08/ 27 by jd in Global News

“America’s bull market in equities turned 3,453 days old” on August 22. “Since hitting a low of 666 in March 2009, the S&P 500 index has increased more than fourfold, driven by strong corporate profits, low inflation, stable economic growth and a boatload of central-bank stimulus. Despite five corrections of at least 10%, the index has never entered bear territory, defined as a drop of at least 20%. Most commentators are declaring this to be the longest bull market in history.”


Bloomberg (August 10)

2018/ 08/ 12 by jd in Global News

“The slide in China’s currency paused this week after jawboning by the central bank,” but the rout may not be over. “The ripples of the yuan’s 4.7 percent drop this year may be just starting to spread to the country’s neighbors” such as Vietnam, where the “dong has been moving steadily closer to the edge of its 3 percent daily trading band against the dollar over the past two weeks, as traders bet on faster depreciation.” Moreover, Vietnam is only half caught up with the drop in China’s currency, “suggesting further depreciation is possible – particularly if the yuan resumes its decline.”


Bloomberg (August 14)

2017/ 08/ 16 by jd in Global News

“The last time Japan strung together this many quarters of growth was back in mid-2006…. The yen has fallen, corporate profits have soared and the economy is running above its potential growth rate. Yet inflation remains stubbornly low, despite massive monetary stimulus from the central bank. Economists are watching intently for signs that the tightest labor market in decades is beginning to bring wage gains.”


Bloomberg (November 16)

2016/ 11/ 17 by jd in Global News

“One week after India’s sudden declaration that 500- and 1,000-rupee notes were no longer legal tender, the economy is in chaos.” Designed to shake out black money, “what seemed at first to be a masterstroke by Prime Minister Narendra Modi now looks like a grave miscalculation.” The move invalidated over 80% of the currency in circulation, crippling the economy. “The central bank has struggled to print replacement denominations—and the new notes are the wrong size for existing ATMs.” It could be months before things return to normal.


Bloomberg (November 2)

2016/ 11/ 04 by jd in Global News

“The last time the Philippine peso neared 50 to the dollar, the global financial system was melting down and the central bank raised interest rates to defend it. This time, it has been driven by the president cursing his trading partners.”


Bloomberg (October 31)

2016/ 11/ 02 by jd in Global News

“Of all of the scary economic data that routinely streams out of Japan, this statistic should terrify you: $800 million.” The “staggeringly small figure” is the total value of completed venture capital deals for Japan in 2015. Representing Japan’s risk-adverse culture, $800 million “explains a great deal about why the world’s third-largest economy continues to struggle, no matter how much cash the central bank pours into it. Too few Japanese are starting new companies.” In comparison, 2015 venture deals totaled “$72 billion in the U.S. and $49 billion in China. Even tiny Israel managed $2.6 billion in deals.”


Bloomberg (May 16)

2016/ 05/ 17 by jd in Global News

“Never before has the Bank of Japan done so much to achieve so little. Even after arranging a record stimulus program and reducing a key interest rate to less than zero, the central bank has failed to boost inflation to its goal of 2 percent…. A central bank using up its policy tools doesn’t bode well for a nation with the world’s largest debt burden.”


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