Archives of “barclays” tag

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Goldman Sachs says real concerns about USD as reserve currency. Barclays says No.

  
Analysis, Forex
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GS is alarmed, says “Real concerns about the future of the US Dollar as the world’s reserve currency have started to emerge.”

Barclays says nope, the US “isn’t anywhere close to losing its reserve currency status”. Barclays cite:
  • “depth of capital markets and overwhelming volume of USD denominated global transactions” 

On the recent decline in the dollar:

  • “Reserve managers and investors have spent the better part of the last few years accumulating USD assets and with the recent developments, simply find it prudent to diversify into less USD denominated exposures” 

Barclays comments via Bloomberg.

I’m with Barclays on this one.
GS is alarmed, says "Real concerns about the future of the US Dollar as the world'sreserve currency have started to emerge."

Barclays on the FOMC – 25bp cut in July, more to come by end of 2019

  
  Analysis
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Scanning through some of the late week info from via banks, this via Barclays, in brief:

  • Powell’s testimony was dovish, surprisingly so
  • Increases confidence on 25 bp cut to come this month
  • two more 25bp cuts to come by the end of the year
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No surprise from Barclays on the July forecast, this is consensus. A further 50bps to come by year end is a bit of an eyebrow raiser though.

Citi on the FOMC, 25 bp cut this month and another by year end

Citi see an increased downside risk for the US economy …. but acknowledge:
  • that view is clearly not shared by Chair Powell
  • July … a 25 basis point cut is likely to provoke two or more dissents, 25 basis points may be the compromise policy outcome
  • Following … one additional 25 basis point cut, most likely in September

A look inside the Wall Street/DC money machine.

  
  Education
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A memo sent out to vice-presidents and higher-level employees at Barclays Capital provides a rare glimpse into how Wall Street flexes its political muscles around election times.

While Wall Street has traditionally been regarded as a bastion of free-market Republicanism, this impression has largely been disproved in recent years. Wall Street invested far more in Democratic candidates and campaigns in the 2008 election cycle, when Barack Obama was elected president.

Goldman Sachs [GS  169.20    -1.87  (-1.09%)   ], for instance, saw 75 percent of its donations go to the Democratic political machinery in 2008. And in this cycle, the latest figures available show 54 percent of Wall Street contributions going to Democrats. The political action committee money is even more skewed toward Democrats, with 57 percent hitting in that direction. (Those numbers don’t include the third-quarter contributions, which may have balanced out the numbers a bit.) (more…)

Leeson: Rogue trader culture is more rife than ever

  
Economy, Education
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Nick Leeson, the original rogue trader whose actions led to the collapse of the venerable Barings Bank and to a six-year prison sentence, yesterday warned that the culture of the City has spun out of control.

With banks reeling from numerous scandals and the London financial district under intense pressure to reform itself, Mr Leeson said that unless punishments are increased traders will continue to run amok.

“Rogue trading is on the increase. The latest scandals are just a sign that the culture is running riot without any checks in place.

“Every day you wake up and see something different,” he told The Independent. (more…)

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