Venezuelans throw money on the streets as hyperinflation keeps increasing
Latest Posts
rssFed’s softer outlook isn’t just pushing Treasury yields lower
Bond yields globally are also being suppressed
The fall below 2% for the first time in New Zealand’s 10-year bond yields isn’t just an isolated incident in markets this week. The fact that Treasury yields are being driven lower after the FOMC meeting on Wednesday is also causing a more pronounced effect in the bond market as yields everywhere are starting to suffer:
- Australia’s 10-year bond yields are just 2 bps of all-time lows of 1.81%
- Japan’s 10-year bond yields fall deeper into negative territory, lowest since late 2016
- Germany’s 10-year bond yields inch closer towards 0%
So, if you’re looking for an argument for a weaker dollar after the Fed, just be wary that other major economies aren’t faring that much better. The fact that 10-year Treasury yields still pay well over 2% should be a reason for investors to not be too worried about prolonged dollar weakness in the bigger picture.
OPEC members need to send the price of oil higher, some not at breakeven yet
That’s according to RBC Capital Markets, they reckon oil is “still below the fiscal breakeven level in a number of OPEC countries”
Looking ahead to the June meeting on OPEC:
- Saudi Arabia will lead OPEC to extend the production cut deal “for the duration of 2019”
- Adds that Russia a reluctant partner in the supply cuts, bt will agree to continuing the arrangement
Pakistan Rupee another all-time closing low
China to impose temporary antidumping measures on some products
On stainless steel billet and hot-rolled stainless steel plate
- from EU, Japan, South Korea, Indonesia
- From March 23
Uber to list shares on NYSE in blockbuster IPO
Uber will list its shares on the New York Stock Exchange in what is expected to be the biggest initial public offering of the year, according to two people familiar with the matter.
The US ride-hailing company is expected to make its paperwork public as soon as April for a listing that bankers and investors think could value it at more than $100bn.
In choosing NYSE, Uber is going to the home of some of the biggest IPOs in history, including Alibaba, General Motors and Visa.
While previous generations of technology companies such as Google and Apple chose rival Nasdaq, technical problems with Facebook’s 2011 listing have shifted the tide in NYSE’s favour. The Big Board has boosted its share of recent marquee tech listings, including Spotify, Snap and Twitter.
Uber also has close connections with NYSE: its chief financial officer, Nelson Chai, was formerly finance chief at the exchange, and John Thain, an Uber board member, was once NYSE’s CEO.
Uber’s IPO is one of a number of hotly anticipated Silicon Valley listings expected in the coming months. Its smaller US rival Lyft plans to list its shares on Nasdaq next week.
Uber declined to comment. The choice of exchange was first reported by Bloomberg.
US sanctions 2 Chinese shippers over North Korea trade
A pair of Chinese shipping companies have been blacklisted by American authorities for allegedly helping North Korea evade U.S. and international sanctions over its nuclear and missile programs, tightening the Trump administration’s net as it pushes denuclearization talks with Pyongyang.
Dalian Haibo International Freight was designated for providing goods and services for Paeksol Trading, overseen by North Korea’s Reconnaissance General Bureau, the Treasury Department said Thursday. Paeksol has been subject to U.S. and United Nations sections.
Liaoning Danxing International Forwarding is alleged to have helped North Korean officials in the European Union operate and purchase goods for their government via deception.
The sanctions are the first since the abrupt end to the summit between U.S. President Donald Trump and North Korean leader Kim Jong-Un last month in Hanoi.
“Treasury will continue to enforce our sanctions, and we are making it explicitly clear that shipping companies employing deceptive tactics to mask illicit trade with North Korea expose themselves to great risk,” Treasury Secretary Steven Mnuchin said in a statement.
The Treasury and State departments also named 18 vessels suspected of involvement in ship-to-ship transfers with North Korean tankers, along with 49 vessels believed to have exported North Korean coal since new U.N. sanctions were imposed on Aug. 5, 2017. The ships are not limited to North Korean vessels, with others under the flags of such countries as Sierra Leone.
North Korea has demanded the US removes weapons from Guam and Hawaii
Report from Korean media (Dong-A Ilbo … Donga for short!)
Not sure if its in the “Friday funnies” section
Brexit – Draft EU statement confirms April 12 or May 22 the dates
Brexit Summit updated draft conclusions say EU would agree extension to May 22 if Brexit deal approved in UK parliament next week
- if not, UK would need to inform EU by April 12 on way forward
So what that all means is that the draft EU statement offers an unconditional Brexit delay until April 12.
And a possible longer extension through to until May 22 if the Brexit deal passes the UK Parliament before then.
—
Its such a shame I did not misspell ‘draft’ as ‘daft’ in the headline. Maybe next time.
Here’s what could hurt the Fed’s credibility (and it just happened).
CNBC interviewed DoubleLine Capital CEO Jeffrey Gundlach, a partial report is here.
Reuters have a bit more from Mr. G also, from a phone interview. Gundlach makes very pertinent points indeed:
- The Fed’s cautious stance on raising interest rates could backfire by creating uncertainty in the economy and hurt the U.S. central bank’s credibility
- “This U-Turn – on nothing fundamentally changing – is unprecedented”
- “Three months ago, we were on ‘autopilot’ with the balance sheet – and now the bond market is priced for a rate cut this year. The reversal in their stance is stunning.”
Will try to dig up a link to Reuters for more….. here we are Reuters
—
I don’t always agree with what Mr. G says (but acknowledge he is the billionaire 😀 ) but hard to argue with his assessment on this.
