Tag Archives: Featured

You want to fix the economic system, reduce political bribery and reduce rising income inequality? Shut off the cheap unlimited credit spigot to banks, financiers and corporations. Cheap credit–newly issued money that can be borrowed at low rates of interest–is presented as the savior of our economic system, but in reality, it’s why our system is broken. The conventional economic pitch goes like this: cheap credit...

Swiss Franc Switzerland SVME Purchasing Managers Index (PMI), January 2017(see more posts on Switzerland SVME PMI, ) Source: Investing.com - Click to enlarge GBP / CHF The pound still remains on the back foot against the Swiss Franc with rates for GBP CHF sitting just below 1.25 for this pair. The pound is struggling to gain momentum against all of the major currencies as Brexit is just around the corner. The...

Investors are anxiously awaiting more details on the new US Administration’s economic policies and priorities.  Part of the challenge is that the cabinet represents a wide range of views and it is not clear where the informal power lies, or whose call is it.   In terms of economic policy, trade is being given priority.    It is seen as the key to the jobs and growth objectives. There have been two initiatives: formally...

© Gvictoria – Dreamstime.com - Click to enlarge Tribune de Genève. Last October, Geneva state councillor Mauro Poggia, had his department send out close to 91,000 letters to those receiving social benefits, asking them to contact the authorities if they had failed to declare any assets or income. Laurent Paoliello, a spokesperson from the DEAS, said they received 3,200 letters back. So far, we haven’t been through all...

Precious Metals As Safe Havens – Reassessing Their Role New research confirms that not just gold but also the other precious metals –  silver, platinum and palladium bullion – act as safe havens, especially from ‘Economic Policy Uncertainty.’ This is something that is particularly prevalent today due to the ‘Hard Brexit’ impact on the UK and the Eurozone, risk of trade wars and heightened financial and geopolitical...

Summary: Greece needs to implement its commitments in the next few weeks or it faces a new crisis. The more the government implements its commitments, the less public support it draws. New elections in Greece cannot be ruled out. The problem is uncomfortably familiar. Greece has a chunky payment due to its official creditors. Reports suggest that Greece has not completed much more than a third of the measures...

Summary: US official comments on the FX market appear to have increased in frequency. They are mostly warnings about a strong dollar, but not all comments are dollar-negative. Policy is the ultimate driver but comments pose headline risk. Although in office less than a fortnight,  the new US Administration is showing a disregard not only for the domestic convention but international agreements like on...

By Ingrid Melander, Leigh Thomas and Simon Carraud Marine Le Pen © Reuters. France's FN sets out unorthodox economic plans to support a euro exit - Click to enlarge PARIS (Reuters) – France’s National Front will combine the euro exit at the heart of its economic platform with a cocktail of unorthodox policies including money printing, currency intervention and import taxes, a top party official told Reuters. A key...

Swiss Franc EUR/CHF - Euro Swiss Franc, January 31(see more posts on EUR/CHF, ) - Click to enlarge FX Rates The immigration imbroglio in the United States is being cited in various accounts for the price action, including yesterday’s drop in the S&P 500, where the intraday loss was the largest since before the election.  The drama is also being blamed for the dollar’s losses yesterday, which it is...

The ECB’s nationalization of the European corporate bond sector continues. In the ECB’s latest update, the six central banks acting on behalf of the Euro system provided an update on the list of corporate bonds they bought. They bought into 810 issuances with a total of €573bn in amount outstanding. For the week ending 27th January, the bond purchases stood at €1.9bn across sectors. This increases the number of...