Tag Archive: newsletter

Dollar Rally Stalls as Fresh Drivers Awaited

2019-11-06

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2019-11-06

US-China relations continue to improve with news of cooperation in a major fentanyl case. Eurozone final services and composite PMIs surprised on the upside; UK Parliament will be dissolved today. Poland is expected to keep rates steady at 1.5%; Russia October CPI is expected to rise 3.8% y/y. China sold €4 bn in its first euro-denominated bond since 2004; Thailand cut rates 25 bp to 1.25%, as expected.

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FX Daily, November 6: Markets Catch Collective Breath as Dollar Consolidates Yesterday’s Advance

2019-11-06

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2019-11-06

Overview: Investors seem to be catching their collective breath today, and the global capital markets are consolidating recent moves. A notable exception is the Chinese yuan, which has continued to strengthen, and the dollar has slipped back below CNY7.0. Asia Pacific equities were mixed, and the four-day advance in the regional benchmark stalled today.

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Robinhood’s “Infinite Money Cheat Code” Gives Traders Access To Unlimited Funds

2019-11-06

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2019-11-06

If one is a central bank - such as the SNB and BOJ - life is easy: you just print as much money as you need out of thin air, and buy whatever you want, without regard for price. For those who are not central banks, having access to unlimited borrowed money may be the next best thing.

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Would an Uber ban in Geneva push other cities to treat drivers as employees?

2019-11-06

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2019-11-06

It’s not the first time Uber has faced some bumps on the road in canton Geneva. But the latest move requiring the ride-hailing company to treat drivers as employees could spell big changes for the company. Will Uber call it quits or set a precedent for other cities?

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The American Middle Class Isn’t Disappearing — But it’s Not All Good News

2019-11-06

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2019-11-06

Median Total Income, Households, in 2018 Dollars
I'm not of the opinion that the American economy is doing amazingly well. However, I'm also not of the opinion that it is falling apart, or that the American middle class is disappearing before our eyes. Nor is there is no one, single, magic statistic we can point to and say "see, we're all worse off — or better off — now." Aggregate economic data is by its very nature lacking in nuance, moreover, difference measures of economic growth and...

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The Fight Against “Home Sharing” Drives up the Price of Short-Term Housing

2019-11-06

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2019-11-06

City Council in London, Ontario recently decided to explore their options for regulating “short-term rentals” arranged through companies such as Airbnb, HomeAway, etc. The motion was brought forward by Councillor Anna Hopkins, who is concerned about (a) complaints from residents about short-term-renters’ noisy parties, and (b) “the role those short-term rentals have on taking potential long-term housing options out of the market.”

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FX Daily, November 5: Animal Spirits Remain Animated

2019-11-05

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2019-11-05

The prospects that the US-China deal could include some rolling back of existing US tariffs helped underpin risk appetites. After new record highs in the US S&P 500 and NASDAQ, Asia Pacific markets marched higher, and the MSCI Asia Pacific reached its highest level since August 2018. A small rate cut by China and catch-up by Tokyo, which was on holiday on Monday, helped extended the regional rally for the 14th session in the past 17.

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‘Farinet’ local currency to be withdrawn from circulation

2019-11-05

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2019-11-05

The Farinet – a local currency introduced in canton Valais in 2017 – is to be withdrawn from circulation at the end of 2019 after failing to stimulate the regional economy as hoped. Farinet banknotes were introduced in Valais in western Switzerland in spring 2017. But on Tuesday the association behind the currency announced it planned to withdraw it at the end of this year.

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Switzerland’s growth hampered by trade tensions, economic slowdown

2019-11-05

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2019-11-05

Trade tensions coupled with a slowdown in Europe are likely to take a toll on the Swiss economy over the next two years, the OECD forecasts. The Organisation for Economic Co-operation and Development (OECD) has revised its growth forecasts downwards for Switzerland. It also recommended Switzerland raise its retirement age.

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November Monthly

2019-11-05

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2019-11-05

Two main developments drove the foreign exchange market in October.  First, the market grew more confident that a hard Brexit could be avoided.  This drove sterling sharply higher.  It rallied from $1.22 on October 10 to a little above $1.30 on October 21 before doubts grew about the likelihood that Parliament will approve the new agreement.

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The Middle Class Is Now The Muddle Class

2019-11-05

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2019-11-05

Workers share of national income, 1994-2020
The net result is the muddle class has the signifiers but not the wealth, power, capital or agency that once defined the middle class. The first use of the phrase The Muddle Class appears to be The rise of the muddle classes (Becky Pugh, telegraph.co.uk) in January 2007. The "muddle" described the complex nature of defining "the middle class," which includes education, class origins, accents, and many other financial, social and cultural...

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Targeting nGDP Targeting, Report 3 Nov

2019-11-05

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2019-11-05

Gold and Silver Prices
Not too long ago, we wrote about the so called Modern Monetary so called Theory (MMT). It is not modern, and it is not a theory. We called it a cargo cult. You’d think that everyone would know that donning fake headphones made of coconut shells, and waving tiki torches will not summon airplanes loaded with cargo. At least the people who believe in this have the excuse of being illiterate.

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FX Daily, November 4: Investor Optimism Carries into the New Week

2019-11-04

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2019-11-04

Overview: Investor optimism is reflected by the risk-taking appetite that is lifting equity markets and bond yields. With Japanese markets closed for a national holiday, the MSCI Asia Pacific Index was led higher by more than 1% gains in Hong Kong, Taiwan, South Korea, and Thailand. The regional benchmark advanced for the seventh session in the past eight and is approaching the year's high.

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Why Nestlé won’t meet its zero-deforestation pledge

2019-11-04

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2019-11-04

When it came under fire from environmental groups over its harvesting of palm oil, Swiss food giant Nestlé committed to eliminating deforestation from its supply chain by next year. But it will take another three years to come close to accomplishing that goal.

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Gretchen-Parlament: Für Thomas Jordan ein Segen

2019-11-04

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2019-11-04

„Gretchen-Parlament“ – diesen Ausdruck wählte ich in Anlehnung an die grüne Greta und ihre Jünger und Jüngerinnen europaweit. Kann von einem legalen Wahlkampf die Rede sein? Grüne Frauen wurden gewählt aufgrund sexueller Übervorteilung. Ich selber war Ständeratskandidat in Basel, wurde aber an keine einzige Podiumsdiskussion zugelassen. Women only.

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Steady euro area growth and rise in core inflation

2019-11-04

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2019-11-04

Euro Area Quarterly GDP growth by Country
According to Eurostat’s preliminary figures, euro area GDP grew by 0.2% quarter on quarter in Q3, the same pace as in Q2 and in line with our expectations. Country wise, France, Italy and Spain grew at the same pace in Q3 as in Q2. In particular, household and investment spending grew at a solid pace in both France and Spain. The preliminary GDP figure for Germany will not be released until 14 November.

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FX Weekly Preview: Synchonized Emergence from Soft Patch?

2019-11-04

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2019-11-04

There have been plenty of developments warning of a global economic slowdown. Yet, seemingly to justify the continued advance in equity prices, there has begun to be talk of possible cyclical and global rebound. That is the new constellation, connecting the better than expected Japanese, South Korean, and Chinese September industrial output figures,  a slightly stronger than expected Q3  GDP reports from the US and the eurozone. 

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EM Preview for the Week Ahead

2019-11-04

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2019-11-04

EM should continue to benefit from the generalized improvement in the global backdrop. Trade tensions have eased whilst the risks of a hard Brexit have fallen, at least for now. Yet recent developments in some major EM countries underscores how important it is for investors to differentiate between the strong credits and the weak ones.

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Swiss government cuts drug prices by 100 million francs

2019-11-03

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2019-11-03

Switzerland’s Federal Office of Public Health (FOPH) recently announced it had reduced the price Swiss healthcare providers and patients will pay for 257 drugs by 16.3%. These lower prices, which take affect on 1 December 2019, are expected to save CHF 100 million annually.

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Minimum Swiss internet speed to triple in 2020

2019-11-03

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2019-11-03

The Federal Council, Switzerland’s executive, has confirmed a decision made by parliament to raise the minimum speed of broadband internet connections in Switzerland. From 1 January 2020, the minimum download speed specified in Switzerland’s universal service agreement with Swisscom will rise from 3 to 10 megabits per second (Mbits/s) and the minimum upload speed will rise from 0.3 to 1 Mbit/s.

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