Where the Boeing 737 Max Is Grounded
Archives of “March 15, 2019” day
rssBOJ’s Kuroda: Negative interest rates help to create desirable yield curve
BOJ governor Haruhiko Kuroda still on the wires
North Korea is considering suspending nuclear talks with United States
The headlines helping the yen to gain
- North Korea is considering suspending nuclear talks with United States
Tass citing Nth Korean deputy foreign minister
And:
- North Korea has no intention to yield to united states’ demands
- North Korean leader Kim set to make official announcement on his position regarding talks with united states
Note also that the Unification Ministry earlier noted that the North Korean head of the Kaesong inter-Korean liaison office had not attended inter-Korean weekly Friday meetings since February 22nd.
USD/JPY had been falling after the ‘as expected’ BOJ announcement (even leading into it … ps. moves are small only) – this given the yen a further little boost.
BOJ announce no change to monetary policy, as expected
Bank of Japan March 14 and 15 policy meeting Statement issued now
- maintains short-term interest rate target at -0.1 pct
- maintains 10-year JGB yield target around zero pct
- BOJ decision on yield curve control made by 7-2 vote, board members Harada, Kataoka dissent
- BOJ leaves unchanged pledge to buy JGBin flexible manner so its holdings increase at annual pace of around 80 trln yen
BOJ cuts assessment on exports, output
- tweaks assessment on Japan’s economy
- Says Japan’s economy expanding moderately but exports, output affected by overseas slowdown
- says overseas economies growing moderately but slowdown observed
- says exports showing some weakness recently
- says output showing some weakness but rising moderately as a trend
- says Japan economy likely to continue expanding moderately despite impact of overseas slowdown
- Says exports likely to remain weak for some time but remain on moderate rising trend
This decision and the surrounding downgrades were all expected by the market.
China’s Premier Li says the economy faces new downward pressure
Premier Li Keqiang speaking at a press conference at the end of the National people’s Congress (NPC)
- China will not allow economic growth to fall out of a reasonable range
Goldman Sachs raised its oil price forecasts – SG also raise their forecasts
Via Société Générale now, ICE Brent forecast USD 70 in Q3
- to trade 62-75 range over next 12 months
- average 67.50 in 2019
Nymex WTI
- 64 USD in Q3
- $55-$69 range over next 12 months
- $60 average in 2019
Citing:
- Iran, Venezuela the biggest upside risks to oil market outlook
- Saudi Arabia unlikely to proactively increase output to make up for supply disruptions
China state media – China, US made further substantive progress on trade talks
Xinhua with the report
Also:
- China’s vice premier Liu he spoke by telephone with US trade representative, Treasury Secretary
Fox reports the White House want a trade deal – hope to lift US stock prices 2000 points!
“We believe that a real trade deal with China will take the Dow (Jones Industrial Average) up around 2,000 points
We don’t believe a significant deal is already baked into stock prices”
Take this FWIW, Fox citing “one senior White House economic adviser, speaking on the condition of anonymity’
More:
- At current levels that would bring the Dow to the 27,700 level, exceeding the record high of 26,828 reached in October 2018.
Link for (not very much) more
US (record) debt soars over $22 tln. Here’s when the USD is likely to “flash red” warning.
Comments on what to watch for if the USD drops as a warning government debt is at unsustainable levels,
- currency would likely “flash red” should financing costs outstrip growth
- and interest payments spur a “snowball” in the debt burden as a share of the economy
“Of the market variables that can best flag when policy is overreaching, the exchange rate is likely to be best at playing the role of ‘canary’ — flagging …. excess”
Comments from Deutsche Bank, not an imminent warning but something to keep in the back of your mind. Applies to other countries also, of course.
US major indices end the day with modest declines
The three day run higher in S&P and Nasdaq is over
The US major indices are ending the day with modest declines. That breaks the 3 day up streak for the Nasdaq and the S&P. The Dow actually closed with a modest gain today.
The final numbers are showing:
- The S&P index is down -2.44 points or -0.09% at 2808.48
- The Nasdaq index is down -12.495 pointe or -0.16% at 7630.91
- The Dow is up 7.05 poiints or 0.03% at 25709.94
Some winners included:
- General Electric, +2.79%
- Charles Schwab, +2.0%
- Adobe, +1.25%, Adobe announced earnings after the close with revenues and earnings beating estimates, but guidance is a weaker than expected.
- Intuit, +1.23%
- Visa, +1.18%
- Celgene, +1.13%
- Apple, +1.11%
- Nike, +1.09%
- Southwest airlines, +1.07%
- J.P. Morgan, +0.93%
Some losers today:
- AMD, -2.4%
- Facebook, -1.85%
- Nvidia, -1.81%
- Intel, -1.71%
- Broadcom, -1.15%
- Micron, -1.08%
- Boeing, -1.04%
- Twitter, -0.89%
- Netflix, -0.66%
- Alphabet, -0.65%