Tag Archive: newsletter

FX Daily, July 22: Greenback is Mostly Firmer to Start New Week, while the Euro is Pinned near $1.12

2019-07-22

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2019-07-22

What promises to be an eventful two weeks has begun quietly. The ECB, Fed, BOJ, and BOE will meet over the next fortnight. The central banks of Turkey and Russia meet this week and are expected to cut rates. The UK will have a new Prime Minister.

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FX Weekly Preview: Highlights in the Week Ahead

2019-07-22

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2019-07-22

Three events that will capture the market's attention next week: The consequences of the Japanese election, the first look at US Q1 GDP, and the ECB meeting. The central banks of Turkey and Russia also meet. Both are expected to cut interest rates, following rate cuts in the middle of last week by South Korea, Indonesia, and South Africa.

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Hildebrand hatte SNB nicht verstanden: Sie muss zugunsten eigener Wirtschaft investieren

2019-07-22

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2019-07-22

Bilderberg, Gerzensee und „Franken-Rütli“ – das sind alles Geschwister im Geiste: undurchschaubar, informell, nicht greifbar, gegen aussen, eine Versammlung der Macht, mit dem Vorspuren von Entscheiden grösster wirtschaftlicher und politischer Tragweite.

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Our Ruling Elites Have No Idea How Much We Want to See Them All in Prison Jumpsuits

2019-07-22

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2019-07-22

Pretax income growth in the United States
Even the most distracted, fragmented tribe of the peasantry eventually notices that they're not in the top 1%, or the top 0.1%. Let's posit that America will confront a Great Crisis in the next decade. This is the presumption of The Fourth Turning, a 4-generational cycle of 80 years that correlates rather neatly with the Great Crises of the past: 1781 (Revolutionary War, constitutional crisis); 1861 (Civil War) and 1941 (World War II, global war).

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Switzerland could lose billions in global corporate tax reform push

2019-07-22

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2019-07-22

Switzerland stands to lose up to CHF10 billion ($10.2 billion) as a consequence of attempts by other countries to change how multinationals are taxed. Countries belonging to the G20 and OECD are pushing for changes in corporate taxation rules to capture a larger share of taxes of multinationals based in tax-friendly destinations like Switzerland.

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Rents have risen in Switzerland’s main cities, according to rental website

2019-07-21

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2019-07-21

The website homegate.ch has compiled data on rental prices in Zurich, Basel, Bern and Geneva over the last two years. The data shows how rents have risen in these cities and presents them on maps showing prices rises by suburb in each of these cities.

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Monthly Macro Monitor: We’re Not There Yet

2019-07-21

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2019-07-21

US High Yield Master 2000-2015
I first wrote about the current economic slowdown a year ago and Jeff Snider actually started seeing signs of slowdown in the Eurodollar market as early as May 2018. So, the slowdown we’re in now certainly isn’t a surprise here at Alhambra. I think though that we often forget how long these things take to develop.

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Globally Synchronized, After All

2019-07-20

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2019-07-20

Retail Sales (ex Autos), NSA 1993-2019
For there to be a second half rebound, there has to be some established baseline growth. Whatever might have happened, if it was due to “transitory” factors temporarily interrupting the economic track then once those dissipate the economy easily gets back on track because the track itself was never bothered.

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Retirement age to rise for women in Switzerland

2019-07-20

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2019-07-20

The Swiss government has been looking at measures to shore up the finances of Switzerland’s pension system for some time. The difference between the official retirement age for women (64) and men (65) is an obvious target.

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Monetary Metals Don’t Need a “Gold Standard” Proxy System

2019-07-20

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2019-07-20

President Trump moved recently to nominate an avowed sound money advocate, Judy Shelton, to the Federal Reserve Board. That triggered a flurry of superficial and derisive references in the controlled media to Shelton’s past support of a gold standard.

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FX Daily, July 19: Dollar Pares Losses as Market Partly Corrects Confusion of Magntiude and Timing of Fed

2019-07-19

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2019-07-19

Overview: Comments underscoring the importance of acting preemptively by two Fed officials sent the dollar reeling and helped lift equities after the S&P fell to a two and a half week low. The decline in rates and the US shooting down of an Iranian drone in the Gulf helped spur gold to new six-year highs. There was some attempt to clarify the (NY Fed's) comments and the dollar has pared yesterday's losses.

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Euro area manufacturing is not out of the woods

2019-07-19

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2019-07-19

Euro Area Industrial Production, MoM 2019
Industrial production rebounded in May. But a closer look shows that the improvement was narrowly spread, and euro area manufacturing faces numerous challenges ahead.After two consecutive months of contraction, euro area industrial production (IP, excluding construction) rose by 0.9% month on month (m-o-m) in May, above consensus expectations.

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US FX intervention still someway off

2019-07-19

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2019-07-19

US Dollar Overvaluation According to OECD Purchasing Power Parity, 1971-2019
The likelihood of active FX intervention by the US authorities remains low but is increasing and the Trump administration can be expected to continue to pressure the Fed to cut rates.The Trump administration has been focusing on the US’s trade deficit with some of its main trading partners such as China and Germany. A strong dollar is exacerbating this deficit and has visibly exasperated President Trump.

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US ratifies double-taxation deal with Switzerland

2019-07-19

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2019-07-19

The United States Senate on Wednesday ratified a double-taxation agreement (DTA) with Switzerland, ending years of stalemate. The agreement, which required two-thirds of votes, was accepted by a large majority, according to the US Senate website.

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FX Daily, July 18: Dollar on Back Foot as Equities Slide

2019-07-18

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2019-07-18

Overview:  Profit-taking continues to weigh on global equities earnings concerns saw the biggest drop in the S&P 500 in three weeks.  The MSCI Asia Pacific Index fell for the fourth consecutive session.  The Nikkei gapped lower for the second straight session and has now retraced half of the gains scored since early June.  The Shanghai Composite is at its lowest level in a month.

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Pound to Swiss Franc forecast: Will GBP/CHF rates fall below 1.20?

2019-07-18

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2019-07-18

The pound to Swiss Franc exchange rate has been on steady decline since May when it peaked at 1.3397. Since then, it has fallen to 1.2245 as Brexit uncertainties continue to weigh on sterling, with the market feeling the prospect of a no-deal Brexit has increased. The franc has also risen in value owing to its status as a safe haven currency, and the continued fears over the global economy.

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Swiss Trade Balance Q2 2019: the positive trend continues to export

2019-07-18

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2019-07-18

Switzerland Trade Balance, June 2019
In the second quarter of 2019, exports increased by 1.4% and imports by 0.2%. The two traffic departments have thus set a record quarterly result. The trade surplus, on the other hand, stood at 6.8 billion francs.

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UBS warns of a looming shortage of workers in Switzerland

2019-07-18

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2019-07-18

The Swiss bank UBS estimates there could be a shortfall of 500,000 workers in Switzerland in the coming 10 years as the baby boomer generation retires. However, the bank predicts the shortfall will not be even across all industries. Some sectors are expected to stagnate. Workers in these industries might find it harder to find work.

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FX Daily, July 17: Back to the Well Again

2019-07-17

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2019-07-17

Overview:  After slapping punitive tariffs on structural from China and Mexico last week, US President Trump threatened to end the tariff truce with China because it is not stepped up its purchases of US agriculture products.  Trump said the tariff freeze was in exchange for ag purchases, but at the time it seemed as if granting licenses to US companies to sell to Huawei was the quid pro quo.

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China: Q2 growth lowest in decades

2019-07-17

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2019-07-17

Growth in Real Chinese GDP by Sector, 2010-2019
Downward pressure on growth persists amid ongoing trade tensions.Chinese real GDP growth came in at 6.2% year-over-year (y-o-y) in Q2, down from 6.4% in Q1, and the lowest quarterly growth in over two decades.The tertiary sector (mainly services) continued to lead growth, expanding by 7.0% y-o-y in Q2, the same as in Q1.

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