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So soll EZB-Präsidentin Christine Lagarde die EU-Regierungschefs wegen der Coronavirus-Krise vor einem extremen Schock für die Wirtschaft gewarnt haben. Ohne koordiniertes Vorgehen werde Europa ein Szenario erleben, das viele an die grosse Finanzkrise 2008 erinnern werde, sagte Lagarde am Dienstagabend laut einem Bericht der Nachrichtenagentur Bloomberg während einer Telefonkonferenz des EU-Rats. Schritte der EZB hätten wohl Folgen auf den Frankenkurs, und die...

Fears over coronavirus could boost online shopping this year. (© Keystone / Gaetan Bally) Swiss shoppers spent more than CHF10 billion ($11 billion) online last year, an increase of 8.4% from 2018, according to a study of retail habits. Electronics and fashion goods dominated orders. Food accounted for just 2.8% of the total goods consumed (up from 1.8% in 2018), but the report’s authors expect orders to increase this year with people reluctant to go to supermarkets...

The eurodollar curve’s latest twist exposes what’s behind the long end. To recap: big down day in stocks which, for the first time in a while, wasn’t accompanied by massive buying in longer maturity UST’s. Instead, these were sold, too. Rumors of parity funds liquidating were all over the place, which is consistent with this curve behavior. Let’s start with eurodollar futures; the curve had absolutely collapsed up to Monday. It was remarkable even though not...

The dollar is stabilizing but remains vulnerable to disappointment as markets await details of US fiscal measures US reports February CPI; Joe Biden moved closer to clinching the Democratic nomination BOE delivered a surprise 50 bp rate cut to 0.25% and initiated a new lending scheme; UK government releases its budget today; UK reported weak data RBA Deputy Governor Debelle laid out the likely path for unconventional policy; China reported disappointing money and...

◆ Gold prices rose by 0.6% today as the Bank of England slashed rates in an emergency move to 0.25% and the ECB looks set to follow as it warned of a 2008 style crisis overnight. ◆ The Bank of England slashed its main interest rate to 0.25 percent this morning in a emergency move to combat the fallout from the coronavirus outbreak on the UK economy. Gold only saw a marginal gain of 0.45% in sterling to £1,285/oz but remains near all time record highs of...

[This article is part of the Understanding Money Mechanics series, by Robert P. Murphy. The series will be published as a book in late 2020.] In addition to the Keynesian perspective (covered in chapter 14), a relatively new challenge to the Austrian framework comes from the “market monetarists” and their endorsement of a central bank policy of “level targeting” of nominal gross domestic product (sometimes abbreviated as NGDPLT1). Although not as widespread as the...

Swiss Franc The Euro has fallen by 0.21% to 1.0577 EUR/CHF and USD/CHF, March 11(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The S&P 500 and Dow Jones Industrials sold off after the higher open and briefly traded below yesterday’s lows. Investors seemed disappointed that the Trump Administration was not ready with specific policies after Monday’s tease that had initially helped lift Asia Pacific and...

USD/CHF is under pressure in Asia as US index futures are flashing red. The pair has created a bear flag or a bearish continuation pattern on the 4-hour chart. USD/CHF is currently trading at 0.9364, representing a 0.38% drop on the day, having failed to chew through offers around 0.94 during the overnight trade. The anti-risk CHF is drawing bids in Asia, possibly tracking the S&P 500 futures, which are currently signaling risk aversion with a 2.25% drop. From a...

Zum Franken neigt der Euro ebenfalls wieder leicht zur Schwäche. Im asiatischen Handel hatte sich die Gemeinschaftswährung noch oberhalb der 1,06er Marke bewegt, seit dem Vormittag ging es dann aber tendenziell wieder etwas abwärts, so dass aktuell 1,0597 Franken gezahlt werden. Der US-Dollar notiert mit 0,9328 Franken ebenfalls etwas tiefer als noch im frühen Handel. Die generelle Krisenstimmung an den Finanzmärkten hatte dem Schweizer Franken zu Wochenbeginn einen...

Some reports claim that planes have been flying without passengers in order to maintain landing slots. (Keystone / Laurent Gillieron) With passenger numbers down due to Covid-19, some airlines want authorities to loosen rules maintain that airport landing slots are lost unless fully used. “Use it or lose it”: regulations state that when an airline is allocated a landing slot, it must use it at least 80% of the time planned, or else risk being stripped of it the...