I see your point. But I think it is slightly different, in that the public are being told this is new money - and the new money is being used (hopefully) for fiscal stimulus, being injected directly into the economy, as opposed to an asset swap on ...

The Really Useless Thread

It is desperation but also they (Japan) have little choice. Japan has appalling demographics (and won't allow immigration of educated and skilled working age people to counter this effect), low productivity, insipid growth, highly indebted ...

The Really Useless Thread

Fantastic value for those wanting to protect long equity exposure through buynig puts on indices. Looking at S&P500 Dec Puts.

The Really Useless Thread

Some weak macro numbers coming in, with China's exports falling by nearly 5% in June and imports slowing by 8%, pointing to a marked slowdown in global trade. In the Eurozone, Industrial Production fell by 1.2%, worse than the expected 0.8%, meaning ...

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Rumours that Andrea Leadsom is poised to withdraw from the race to become the next leader of the Conservatives and, therefore, the next Prime Minister. Statement expected at 12:15. Sterling has jumped higher on this rumour, as it removes a layer ...

Cable Update (GBPUSD)

Another fund, this time Aviva, blocks redemptions from its property fund. url

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This is very bleak indeed, particularly so when viewed in combination with yesterday's construction PMI, which fell off a cliff in June, in anticipation of the Brexit vote, to levels not seen since the depths of the credit crisis in 2009. ...

The Really Useless Thread

No, it says 98.8% chance of rates remaning on hold in July, in 0.25%-0.50% range, with a 1.2% chance of a 25bps cut, bringing the target rate to 0-0.25% range..

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Merkel has her faults, but in this instance her caution, calmness and lack of ego marks her out in a very positive light.

The Really Useless Thread

I, too, felt ashamed watching Farage's sickingly gloating performance. I was happy that the tone of his campaign was so heavily criticised by Guy Verhofstadt. As we approach some serious negotiations with the remaining countries of the EU, it is ...

The Really Useless Thread

Credit rating agencies are not relevant when it comes to rating the solvency of sovereign debt issued by countries operating a floating exchange rate, with debt issued in their own currency and their own central bank. Downgrades had no efffect on ...

Cable Update (GBPUSD)

The BOE can mop up, by stepping in as a buyer of Gilts under QE or using its open market operations. How did the downgrade in 2011 affect the cost of borrowing in the US? Also a country running a current account and a budget deficit, thus reliant on ...

Cable Update (GBPUSD)

On its own, the credit downgrades to the UK should not affect government borrowing costs or the value of sterling. However, in such skittish markets, it doesn't take much to act as an excuse for opening up a fresh wave of selling, so who knows. In ...

Cable Update (GBPUSD)

Agree with that point, of the downgrade being potential fuel for a wild short fire - the market needs little excuse for selling right now. In terms of financing costs, the downgrade should make no difference to the government's interest payments or ...

The Really Useless Thread

On its own, the credit downgrades to the UK should not affect government borrowing costs or the value of sterling. However, in such skittish markets, it doesn't take much to open up a fresh wave of selling, so who knows. In recent years, the US and ...

The Really Useless Thread

I'm British (a firm remainer), yet I feel the demand for Article 50 to be invoked is entirely reasonable, as is the refusal to open substantial informal negotiations prior to any invocation. Why should the economies of the EU (and the UK, for that ...

The Really Useless Thread