Commenting on the market reaction, Adam Seagrave, head of global sales trading at Saxo Markets, said: “The initial reaction has been weaker GBP but we are now seeing a rally to a new high. This is presumably the market interpreting the announcement as Boris wanting advisors who are more willing to back aggressive fiscal stimulus.”
Bernie Sanders leads in Iowa polls ahead of Monday’s Iowa Democratic presidential caucus.
If he wins Iowa and New Hampshire, strategists say he could gain a lot of momentum toward winning his party’s nomination.
Traders who thought Johnson would use his considerable parliamentary majority to cut ties with the Brexit hard-liners in his party and deliver a soft divorce were “caught by surprise,” said Kit Juckes, chief foreign-exchange strategist at Societe Generale SA.
It was the currency’s biggest slump in a year.
Saudi Arabia’s oil company Aramco gained 10% in its first moments on the stock market Wednesday in a dramatic debut that held until closing and pushed its value up to $1.88 trillion, surpassing Apple as the largest listed company in the world.
Perhaps the most infamous recent example was the breakdown of the 127-year-old Denver Post. Since private equity firm Alden Global acquired the paper, it has cut two out of every three staff positions — twice the industry rate for downsizing.
To add insult to injury, the firm has been using staff pension funds as its own personal piggy bank. In total, they’ve moved nearly $250 million into investment accounts in the Cayman Islands.
Russia is set to be a major winner after an attack on Saudi Arabian oil facilities slashed production and ramped up tensions in the Middle East, analysts predict.
In a frantic day for the world’s markets, oil prices climbed by almost 15% Monday following the drone attacks on Abqaiq, Saudi Arabia’s largest oil refinery, which pumps around 5% of the world’s oil supply.
A leaked shortlist for the next Governor of the Bank of England made its way from the highest levels of the Treasury to the pages of The Times last Saturday, and has now been followed up by an orchestrated letter signed by Remain supporting MPs. The letter is a not-so-subtle attempt to confirm the leak by making the Civil Service’s recommendation list public and therefore making it politically harder for the Chancellor to appoint a Brexiteer to the role.
– Sterling surges to five-week high against dollar and euro after MPs defeat Government over no-deal
– China and US agree to continue negotiations next month, sending stock markets up
– German factory data shows continued slowdown
Jeremy Corbyn, the scourge of bankers and avowed opponent of capitalism, is winning support from unexpected new quarters: two of the biggest global banks operating in the City of London are warming to the Labour leader.
Unlikely as it may seem, he is now seen as the lesser of two evils by analysts at Citibank and Deutsche Bank, respectively American and German titans of the financial system.
The New Zealand dollar rose after Reserve Bank governor Adrian Orr painted a rosy picture of the local economy and described the 50 basis point cut in the official cash rate earlier this month as „a pre-emptive double cut“ to reduce the need to cut more later.
Japan’s Nikkei dropped 1.2% while Hong Kong’s Hang Seng Index was last in positive territory after sharply recovering from early losses. The Shanghai Composite fell 0.8% while the smaller-cap Shenzhen Composite slipped 1%. Benchmark indexes in Taiwan , Singapore and Indonesia all retreated, and Australia’s S&P/ASX 200 slumped 2.2%. South Korea’s Kospi was closed for a holiday.
Bank stocks led the decline Wednesday as the inversion of the yield curve is seen making it harder for banks traditional business model to work when short term borrowing costs are higher than longer term lending rates.
Bank of America BAC, -4.69%, Citigroup CITI, -5.40% and J.P. Morgan JPM, -4.15% all ended sharply lower.
Investors are on edge because the German economy shrank in the second quarter, and the US-China trade war still looms large over markets, despite the latest truce. Industrial production in China grew at the weakest rate in 17 years.
The deposit is part of a package with the United Arab Emirates worth $500 million announced in April. Both countries pledged an overall $3 billion in aid, with the rest going toward fuel, wheat and medicine.
John Gershman and Alec Irwin state in “Dying for growth”:
„100 countries have undergone grave economic decline over the past three decades. Per capita income in these 100 countries is now lower than it was 10, 15, 20 or in some cases even 30 years ago. In Africa, the average household consumes 20 percent less today than it did 25 years ago. Worldwide, more than 1 billion people saw their real incomes fall during the period 1980-1993. Meanwhile, according to the United Nations Development Program’s 1998 Human Development Report, the 15 richest people in the world enjoy combined assets that exceed the total annual gross domestic product of sub-Saharan Africa. At the end of the 1990’s, the wealth of the three richest individuals on earth surpassed the combined annual GDP of the 48 least developed countries.“
The Thistle won’t waste ink on how the wealthy have fared since the mainstream corporate press does a very commendable job in this respect.
The focus of the IMF programs was never institutional improvement but structural adjustments, which only protected the interests of a small elite, as these neoliberal policies worked well for them and not the general people.
Emirates NBD Capital Limited was global coordinator. The transaction was anchored and arranged by Commercial Bank of Dubai, Emirates NBD Bank, Noor Bank, Dubai Islamic Bank, Mashreqbank and Sharjah Islamic Bank.
The World Bank has approved $722 million loan for Pakistan that will largely be used for improving civic and public transport facilities in Karachi – the largest metropolis that needs nearly $10 billion additional investment to make it liveable.
For decades, the Pakistani authorities have been unable to establish effective tax collection practices. Currently, only one percent of Pakistanis pay their taxes and the country has one of the lowest tax-to-GDP ratios in the world.
Successive governments have avoided imposing stricter controls because they have been staffed by members of the same elites that are actively evading taxes. They are able to do so not only because of government inaction but also because of widespread corruption. In fact, it is cheaper for them to bribe than to pay their dues.
17h ago 21:22
Wall Street closes at record high
Boom! Hopes that US interest rates will be cut next month have sent Wall Street to a new all-time closing high.
A spokesman for the US Navy’s Fifth Fleet in Bahrain told the Associated Press that his command was „aware“ of the incident and was seeking further details. U.S. Naval ships are in the area and are „rendering assistance“ after forces in the region received two separate distress calls, the Fifth Fleet said.
Nations which do not repay money they have borrowed – those which default on their sovereign debt – are punished by international markets.
A debt default leads to devaluation of the currency, an increase in the price of servicing national debt, and a lower national credit score – although it is unknown whether the international financial markets would respond in line with historical precedent in this case.
U.S. Treasury Secretary Steven Mnuchin tweeted that he had a „candid“ and „constructive“ talk on trade issues with People’s Bank of China Governor Yi Gang.
Mnuchin had earlier played down expectations for the meeting with Yi, which took place on the sidelines of a gathering of Group of 20 finance ministers and central bankers in Fukuoka, Japan.
With the outlook of the global economy clouded by the ongoing U.S.-China trade war, finance leaders from the Group of 20 nations kicked off a two-day meeting Saturday in Fukuoka to discuss measures to guard against economic risks.
Donald Trump has insisted that the National Health Service must be „on the table“ in negotiations over a future UK-US trade agreement.
Trade unions have called a general strike on 29 May 2019 to oppose austerity measures in Argentina. The Macri government has brought the country to the brink of economic collapse, with workers’ purchasing power decreasing due to high inflation, unemployment, recession and a sharp increase in poverty.
This is the fifth national strike to protest against the Argentinian president, called by different social organizations and the General Confederation of Workers (CGT) union, and it is taking place simultaneously throughout the country.
The General Confederation of Labor (CGT) began a 24 hour general strike at midnight to protest the economic policy of President Mauricio Macri.
Public transport was expected to be paralyzed, including trains, buses, metro and national and international aircraft.
European stocks rose on Friday, recovering from a six-week low as investors hope the United States and China can still resolve their trade dispute, even as a planned increase in US tariffs on Chinese imports comes into effect.
Acknowledging that continued talks on Friday stateside will be „positive,“ Nick Marro, analyst at the Economist Intelligence Unit, said …
The fall in Britain’s currency accelerated on Wednesday afternoon after a leaked paper indicated Brussels would strongly oppose an extension in the Brexit date to the end of June, dealing a fresh blow to the UK prime minister.
UK’s Barclay: There is no set end date to the Irish backstop
Cox’s advice: Legal risk remains unchanged that UK would have no lawful means of exiting arrangement
„So Mark Carney,with his crystal ball economics, has claimed house prices will drop 30% due to a no deal Brexit. Well. If true. So what?. Some people can only afford rent and have to rent forever. I am happy to take 30% hit if it creates a fairer society,“ Andy Alexander tweeted .
(18.10.2018) Palantir is discussing with investment banks Credit Suisse and Morgan Stanley plans to go public as soon as the second half of 2019, the people said. Some bankers have told the firm it could go public with a valuation of as much as $41 billion—depending in part on the timing—or twice what it was most recently…
(17.9.2018) Lagarde: No-deal Brexit would hurt growth and weaken the pound
BREAKING: UK faces massive Brexit workload, says IMF
IMF: UK would be weaker under any Brexit deal
Hammond: We need to heed IMF’s warning
(15.August) The Government’s bill banning foreigners from buying New Zealand homes is now set to become law in weeks after passing its third reading in the House on Wednesday.
The Overseas Investment Amendment Bill was passed with Labour, New Zealand First and the Greens’ 63 in favour and National and Act’s 57 in opposition.
(24.6.2018) At the end of last month, European Commissioner Günther Oettinger scolded rebellious Italian voters who are fed up with European Union bureaucrats and European Central bankers dominating their country. “The market will teach Italians how to vote,” Oettingerm said.
He had made this remark when it seemed Italy was heading toward fresh elections after the latest political crisis. At the time the spread between Italian and German bonds jumped more than 300 points, aggravating Italy’s heavy public debt. In other words, Oettinger was convinced that the need for financial stability would force upstart Italian voters to get back in line with what the bankers want.
Strategists said the turbulence and concerns about Italy may be enough to slow down Federal Reserve’s rate hikes this year, despite an improved U.S. economy.
Italy’s pro-euro elites have overreached disastrously. President Sergio Mattarella has asserted the extraordinary precedent that no political movement or constellation of parties can ever take power if they challenge the orthodoxy of monetary union.
He has inadvertently framed events as a battle between the Italian people and an eternal ‘casta’ with foreign loyalties, playing straight into the hands of the insurgent Five Star ‘Grillini’ and anti-euro Lega nationalists.
5-Star Movement (M5S) leader Luigi Di Maio said Tuesday that the rise in Italy’s bond spread since the effort to form an M5S-League government collapsed showed that the problems lie elsewhere.
Italy’s two populist parties, the anti-establishment 5-Star Movement (M5S) and the anti-migrant Euroskeptic League, led the reaction but were not alone.
Democratic Party bigwig Carlo Calenda, the outgoing industry minister, for instance, called Oettinger’s intervention „intolerable“ and called for him to apologise or resign.
Fallout on the financial markets will prompt Italians not to vote for populist parties, European Budget Commissioner Guenther Oettinger of Germany said Tuesday, according to an excerpt from a Deutsche Welle interview to be published tonight.
Speaking to the nation later Sunday evening, Mattarella was firm in outlining his constitutional role as guarantor of the cabinet lineup. He said he vetoed Savona out of concern for the negative effect that pick would have on financial markets and on the Italian economy.