Archives of “September 17, 2020” day

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Snowflake now worth $70 billion

  
  Analysis
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Not a bad day’s work

Snowflake’s $3.36 billion initial public offering was a record for a software company and the biggest in the US this year. The share price soared as much as over +150% yesterday. It is now worth more than Uber, Dell and General Motors. Definitely an upgrade from a ‘flake’ to more like a snow ball!
US IPO’s are having a hectic week with 21 companies expected to price their offerings and raising more than $10 billion together.

Bank of Japan monetary policy statement – no change to policy (as expected)

  
  Analysis

Bank of Japan monetary policy deciison comes out per consensus expectation, no change.

  • policy rate left at -0.1%
  • JGB target (10yr) remains around 0%
Also expected, the Bank has revised up its economic assessment:
  • revises higher its outlook for exports and output
  • says the economy is in a severe state but appears to be picking up
  • capex is falling , corporate profits and sentiment is worsening
  • consumption gradually picking up
  • CPI is likely to hover in negative territory for the time being
More:
  • must watch whether the financial system is functioning smoothly, stability is maintained
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USD/JPY is barely responding, which is not much of a surprise given the basically zero expectation of any change in policy – which has indeed been the result.

Oil traders – heads up for the OPEC committee meeting today, Thursday 17 September 2020

  
Analysis, Crude

This is the OPEC+ Joint Ministerial Monitoring Committee meeting.

Given the weak run for crude prices (past days rally excepted) there is likely to be extra scrutiny on producers not hitting compliance targets.
CAD traders will want to keep an eye out for oil-related headlines from the meeting also.
This is the OPEC+ Joint Ministerial Monitoring Committee meeting. 
ps. I don’t have a scheduled time for any comments following the meeting. The meeting is in Vienna so i suspect some time US hours or late Europe.

Bank of England monetary policy decision Thursday 17 September 2020 – likely GBP impact (spoiler – none)

  
  Analysis
  • “With the BoE expected to keep all policy levers on hold, we do not think the September MPC meeting is likely to give sterling much in the way of strong directional cues. All else equal, we expect currency investors to receive mixed set of messages from the BoE”
  •  “The overall tone may take another step in a dovish direction. At the same time, however, we do not expect the BoE to validate hopes for any further near-term easing on rate cuts or asset purchases. If anything, we see them centering market expectations around our base case scenario of an additional £50 bn of QE alongside the November MPR”
Bank of England announcement is due at 1100 GMT

 

A preview of the BoE Monetary Policy Committee (MPC) meeting today from TD, vie eFX. 

Preview of the Bank of Japan monetary policy statement due Thursday 17 September 2020

  
  Analysis

The BOJ is expected to leave policy unchanged at their meeting today.

What time is it? Check this out:

  • The Bank of Japan monetary policy statement is due Thursday 17 September 2020
What to expect? There is some speculation the Bank may upgrade their activity outlook on the back of an uptick in business confidence, which has rebounded (a little) from very low levels.
  • Policy rates will remain unchanged
  • QE buying plans will remain unchanged
Supportive policies are well and truly set in concrete at the BOJ.
Via ScotiaBank, a one-line preview:
  • Other than forecast tweaks, this decision should be largely a non-event with no substantive policy changes expected.
Coming up at 0630GMT, Governor Kuroda’s press conference:
The BOJ is expected to leave policy unchanged at their meeting today.
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