Tag Archives: Featured

President Trump’s focus on getting re-elected in November 2020 may have implications for his economic policy choices. As we move closer to the 2020 presidential election, Trump has been blatantly leaning on the Federal Reserve to be more accommodative and has been trying to appoint nominees who share his preference for loose monetary policy to the Fed board. The countdown to the 2020 elections also seems to be prompting...

Swiss Franc The Euro has fallen by 0.03% at 1.1399 EUR/CHF and USD/CHF, April 19(see more posts on EUR/CHF and USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: Many financial centers are closed today. These include Australia, India, most European markets, and the US. In Asia, equity markets that were open moved higher. The Nikkei, which gapped higher on Monday, rose 0.5% today for a 1.5%...

Soybean harvest in Mato Grosso, Brazil (Keystone / Andre Penner) A United Nations representative is demanding action following reports that Swiss crop science company Syngenta is selling highly hazardous pesticides abroad. “There is an urgent need to end this exploitation of lower standards of protection. This is a morally and ethically unjustifiable situation,” Baskut Tuncak, United Nations Special Rapporteur on human...

It had been 55 months, nearly five years since China’s vast and troubled industrial sector had seen growth better than 8%. Not since the first sparks of the rising dollar, Euro$ #3’s worst, had Industrial Production been better than that mark. What used to be a floor had seemingly become an unbreakable ceiling over this past half a decade. According to Chinese estimates, IP in March 2019 was 8.5% more than it was in...

Swiss Franc The Euro has fallen by 0.15% at 1.1393 EUR/CHF and USD/CHF, April 18(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: A bout of profit-taking in equities began in the US yesterday and has carried through Asia and Europe today. The MSCI Asia Pacific Index fell for the first time in five days, while the Dow Jones Stoxx 600 is snapping a six-day advance....

Pound to Swiss Franc rates We have seen a fairly stagnant market following the Brexit extension until 31st October. Although a key factor on GBP/CHF economic date releases will now gain back some of their impact. Yesterday saw the ease of House Price Growth data and figures dropped to a six year low. The average house price of across the UK grew by 0.6%, but property prices in the...

We do not like Purchasing Power or Real Effective Exchange Rate (REER) as measurement for currencies. For us, the trade balance decides if a currency is overvalued. Only the trade balance can express productivity gains, while the REER assumes constant productivity in comparison to trade partners. Who has read Michael Pettis, knows that a rising trade surplus may also be caused by a higher savings rate while the trade...

A bank window panel in Beijing displaying the security markers on the latest 100 Yuan notes in February (Keystone) Swiss bank Credit Suisse has agreed with Founder Securities to increase its shareholding to a majority stake in its Beijing-based Credit Suisse Founder Securities (CSFS) joint venture. As a result of the agreement, Credit Suisse’s shareholding is expected to increase from 33.3% to 51% by way of capital...

Extreme levels of debt and overvaluation characterize the entire global economy, and are not limited to any one nation or sector. Financial crises come in two flavors: fraud and credit-valuation over-reach.Fraud-based financial crises may differ in particulars, but they share many traits: perverse incentives are institutionalized; the perverse incentives reward figuring out how to evade oversight via fraud,...

Swiss Franc The Euro has risen by 0.24% at 1.1395 EUR/CHF and USD/CHF, April 17(see more posts on EUR/CHF and USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The veracity of Chinese data will be questioned by economists, but today’s upbeat reports round out a picture that began with stronger exports and a surge in lending. Chinese officials, we argue, had a “Draghi moment” and decided to...