Global Investing

Three snapshots for Tuesday

April 17, 2012

Argentina’s debt insurance costs rose after the country moved to seize control of leading energy company YPF on Monday,  Madrid called the move on YPF, controlled by Spanish company Repsol, a hostile decision and vowed “clear and strong” measures, while the EU’s executive European Commission warned that an expropriation would send a very negative signal to investors. Of the countries in the MSCI Frontier equities universe Argentinian equities are the worst performer this year.

Three snapshots for Friday

April 13, 2012

JPMorgan profit beats expectations:

In China the annual rate of GDP growth in the first quarter slowed to 8.1 percent from 8.9 percent in the previous three months, the National Bureau of Statistics said on Friday, below the 8.3 percent consensus forecast of economists polled by Reuters.

from MacroScope:

Central bank balance sheets: Battle of the bulge

April 12, 2012

Central banks across the industrialized world responded aggressively to the global financial crisis that began in mid-2007 and in many ways remains with us today. Now, faced with sluggish recoveries, policymakers are reticent to embark on further unconventional monetary easing, fearing both internal criticism and political blowback. They are being forced to rely more on verbal guidance than actual stimulus to prevent markets from pricing in higher rates.

Central banks and the next bubble (2)

February 22, 2012

In the previous bubble blog earlier in the week I wrote that G4 central bank balance sheets are expanding to a whopping 26% of GDP.

How Turkey cut interest rates but didn’t really

February 21, 2012

How do you cut interest rates without actually loosening monetary policy? Turkey’s central bank effectively did that today.

Financial repression revisited

February 8, 2012

At a monetary policy event hosted by Fathom Consulting at the Reuters London office today, former Bank of England policymakers were discussing the pros and cons of “financial repression”.

Sparring with Central Banks

January 31, 2012

Just one look at the whoosh higher in global markets in January and you’d be forgiven smug faith in the hoary old market adage of “Don’t fight the Fed” — or to update the phrase less pithily for the modern, globalised marketplace: “Don’t fight the world’s central banks”. (or “Don’t Battle the Banks”, maybe?)

from Jeremy Gaunt:

Why is the euro still strong?

November 10, 2011

One of the more bizarre aspects of the euro zone crisis is that the currency in question -- the euro -- has actually not had that bad a year, certainly against the dollar. Even with Greece on the brink and Italy sending ripples of fear across financial markets, the single currency is still up  1.4 percent against the greenback for the year to date.

Turkey’s central bank: still a slippery customer

October 20, 2011

The Turkish central bank has done it again, wrong-footing monetary policy predictions with its latest interest rate moves.

Eight days could point to a correction

April 12, 2010

Morgan Stanley has been crunching some numbers about Europe and come up with something that (not surprisingly) fits their scenario of  a near-term stock correction but only within a longer-term cyclical bull market for equities. It all comes down to eight days in March, apparently.