G7 ministers face full in-tray

By Mike Peacock
May 27, 2015

German Chancellor Merkel talks to Finance Minister Schaeuble during a debate of the Bundestag in Berlin

G7 finance ministers and central bankers gather in Dresden later today for a two-day meeting at an interesting juncture for the world economy.

Will Tsipras spring something in Riga?

By Mike Peacock
May 21, 2015

Greece's PM Tsipras, Malta's PM Muscat, EU Commission President Juncker and France's President Hollande attend an EU leaders summit in BrusselsGreek premier Alexis Tsipras is pinning his hopes on using an EU leaders summit in Riga with eastern European partners from Ukraine, Georgia, Azerbaijan and others to strike the broad outline of a cash-for-reforms deal to stave off default.

Some progress cited in Greek talks, but not enough

By Mike Peacock
April 22, 2015

Greek Finance Minister Varoufakis walks past  Eurogroup Chairman Dijsselbloem at a euro zone Finance Ministers meeting in Brussels

Euro zone finance deputies are due to hold talks today on how to rescue Greece but appear to have little concrete to work on with Athens yet to produce a new economic reform programme after the first one was declared full of holes.

BOC to hold this year? Probably not say nearly half the primary dealers

April 15, 2015

Bank of Canada Governor Poloz speaks during a Canada-UK Chamber of Commerce event in central LondonThe Bank of Canada will almost certainly hold policy steady on Wednesday but nearly half of the banks who do business directly with it predict at least one more rate cut this year.

Surprise monetary policy moves may become new norm in India

April 14, 2015

File photo of Reserve Bank of India (RBI) Governor Raghuram Rajan during a news conference in Mumbai

For all the measures India’s central bank has taken to increase transparency in policy making, predicting rate moves by Governor Raghuram Rajan is still difficult.

Could Yemen prompt an oil rally?

By Mike Peacock
March 27, 2015

 
Shi'ite Muslim rebels hold up their weapons during a rally against air strikes in Sanaa

Yemen’s President Abd-Rabbu Mansour Hadi has fled his refuge in Aden for Saudi Arabia as Houthi rebels battled with his forces on the outskirts of the southern port city.

Clean sweep for Draghi?

By Mike Peacock
January 23, 2015

European Central Bank President Draghi and Vice President Constancio leave after addressing an ECB news conferenc in Frankfurt

Mario Draghi’s peerless track record of eliciting the market response he wants remains unblemished after the ECB’s quantitative easing surprised on the upside – at 60 billion euros a month for at least 19 months it will exceed 1 trillion euros.

Ripples from ECB even before it acts

By Mike Peacock
January 20, 2015

Draghi.jpg

The prospect of dramatic European Central Bank action – coupled with the deflationary threat posed by a plunge in the price of oil and the pain it inflicts on oil producing countries – is putting the financial system under growing stress.

Volatility back with a bang

By Mike Peacock
January 16, 2015

The logo of the SNB is seen at the entrance of the SNB in Bern

Volatility is back with a bang.

The Swiss franc leapt by an unprecedented 40 percent at one point after the Swiss National Bank scrapped its currency cap out of the blue. Oil may have bounced but it’s still down the thick end of 60 percent since mid-2014, dragging the rouble and other oil-producer currencies with it. Copper, generally a barometer of world industrial demand, is barely finding its feet after plunging this week.

No inflation, not much growth

By Mike Peacock
January 6, 2015

A metal sculpture depicting a stock exchange chart is seen in the reception hall of the Athens Stock Exchange in Athens

Euro zone service sector PMI readings for December are unlikely to alter European Central Bank thinking about taking the ultimate policy leap and commencing a quantitative easing government bond-buying programme, possibly at its Jan. 22 meeting.