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Here is what a US-China ‘currency pact’ would mean for the dollar and the yuan

  
  Analysis
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Morgan Stanley (this via Bloomberg) say a pact is likely to weaken the USD and strengthen the Chinese yuan.

Well, yeah.
More:
  • could lead to broad based USD weakness, especially benefitting China-proxy currencies
  • yield curves would get steeper
  • yen would weaken
MS say it’d be a ‘Plaza Accord’ lite.
A bit of a summary if its of interest.

Asset Managers With $74 Trillion on Brink of Historic Shakeout

  
  Analysis
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This is quite amazing via Bloomberg:

“The industry that gave rise to investing titans Peter Lynch, Bill Miller and Bill Gross is facing an existential crisis.

For years, mom-and-pop investors frustrated by high fees and subpar returns from big-name money managers have been shifting their savings into ultra-cheap funds that simply mimic the returns generated by benchmark stock and bond indexes. Passive investing, as it is known, was in. Active was out.

At first, few noticed the trickle of money out of funds run by star money managers into cheaper index products. But now, no one can ignore the flood. The exodus from active funds has sent fees inexorably lower, led to the loss of thousands of jobs and forced large-scale consolidation among firms. That’s pushing the industry, with $74 trillion in assets as measured by Boston Consulting Group, towards a shakeout where only the strongest will survive.”

 

The graphic tells the story:

What has Christine Lagarde said about ECB policies?

  
  Analysis
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Lagarde’s thoughts on ECB policies

Lagarde's thoughts on ECB policies
Bloomberg has a nice recap of all of Lagarde’s comments on ECB policies like QE and negative rates.
“Many of the right decisions have been taken. Most recently, initiatives by major central banks — the European Central Bank’s OMT bond-purchasing program, QE3 by the U.S. Federal Reserve, the Bank of Japan’s expanded Asset Purchase Program — are big policy signals in the right direction.” – Sept 24, 2012.
The entire collection is dovish. The risk is that those comments are part of her job at the IMF.
One thought that’s doing the rounds is that Lagarde’s real job at the ECB will be to push eurobonds forward and eventually the United States of Europe. That’s a compelling argument because closer ties is something she’s always pushed for and it would be part of the mandate implicitly coming from Macron and Merkel.
“Our goal should be clear: Restarting convergence and ensuring the fruits of economic growth are shared broadly across the EU. This will help restore faith in the European project.” – Feb 14, 2019.
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