RSS Feed

Calendar

May 2020
M T W T F S S
« Apr    
 123
45678910
11121314151617
18192021222324
25262728293031

Search

Tag Cloud

Archives

Investment Week (May 18)

2020/ 05/ 18 by jd in Global News

“Credit fundamentals have worsened since the market sell-off began, although central banks could provide some companies with a soft landing and many firms have drawn on their credit lines in a bid to stay afloat.” Even though “the impact is highly correlated across geographies, industries and asset classes…the potential outcomes are too severe to only affect equities and credit-market fundamentals have undoubtedly been impacted.”

 

Forbes (October 28)

2019/ 10/ 30 by jd in Global News

“Amid a global slowdown in economic growth that has seen central banks lower interest rates near zero or below in an effort to provide stimulus,” a number of “major economies are on high recession alert.” These include Hong Kong, the U.K., Germany, Italy and China. “Other highly stressed economies around the world include Turkey, Argentina, Iran, Mexico and Brazil.”

 

Financial Times (September 20)

2019/ 09/ 22 by jd in Global News

“Shock and confusion” resulted when overnight repo rates soared to 10%. The Fed was able to calm markets, but the situation is a reminder. “The more that QE (and its partial reversal) reshapes global finance, the greater the risk that the cogs in the machine unexpectedly misfire. That is no reason to panic. But central bank pilots—like investors—are learning on the job. Better hope they stay completely alert.

 

The Economist (April 13)

2019/ 04/ 15 by jd in Global News

Though relatively new, Central Bank independence has become sweeping. “In a single generation billions of people around the world have grown used to low and stable inflation and to the idea that the interest rates on their bank deposits and mortgages are under control.” Increasingly, it looks like that independence may be a short-lived. Today, the success of central banks “is threatened by a confluence of populism, nationalism and economic forces that are making monetary policy political again.”

 

Wall Street Journal (January 9)

2018/ 01/ 10 by jd in Global News

“The S&P 500 inched higher Monday, extending this year’s run of records. Stocks have begun 2018 on an upbeat note, buoyed by investors’ optimism over the global economy and bets that central banks are unlikely to pressure markets by raising interest rates faster than expected.”

 

Wall Street Journal (December 31)

2017/ 12/ 31 by jd in Global News

“Global stock benchmarks have surged to multiyear highs or records this year, boosted by a rally in shares of technology companies, a synchronized pickup in growth around the world, and unexpectedly benign inflation readings that have kept central bank policy ultraloose.”

 

Institutional Investor (June 4)

2017/ 06/ 06 by jd in Global News

Due to Brexit, “sovereign investors now consider the U.K. less attractive than they did a year ago and are instead favoring investments in Germany and India as part of a broader move to so-called safe haven markets.” The change in sentiment was identified through a survey of “sovereign wealth funds, state-owned pensions, and central banks polled by Invesco.”

 

Institutional Investor (February 6)

2017/ 02/ 07 by jd in Global News

Legendary bond investor Bill Gross believes the “$12 trillion now held by central banks is a permanent fixture of global finance, acting a bit like methadone. Methadone manages the craving, but does little to end the patient’s addiction.” He also posits that the U.S. would be in recession if it were not for the easing measures of the European Central Bank and the Bank of Japan.

 

Bloomberg (November 10)

2016/ 11/ 11 by jd in Global News

The Bank of Japan (BoJ) proved no match for the zero lower bound. “The Bank of Japan’s recent quarterly report says, in effect, that the central bank has done all it can do to raise growth and inflation, and that fiscal policy needs to step in and help.” The BoJ already “owns more than half of the ETF shares in the whole country” and is estimated to soon “be the biggest shareholder in 55 of the 225 companies in the Nikkei index.” Other central banks will follow Japan’s retreat. “The era of bold monetary policy experimentation that began with the global financial crisis is now drawing to a close.”

 

Institutional Investor (October 21)

2016/ 10/ 23 by jd in Global News

“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.”

 

« Older Entries

[archive]