Tag Archive: newsletter

FX Daily, February 13: QT is not the Opposite of QE

2019-02-13

by

2019-02-13

silence
The Federal Reserve has long been clear on the sequence of events as it innovated the playbook during the Great Financial Crisis. There would be a considerable period between when the Fed would finish its credit easing operations that involved purchasing Treasuries and mortgage-backed securities (MBS) and its first-rate hike.

Read More »

Mark Carney Steadies GBP/CHF Rates on Global Viewpoint

2019-02-13

by

2019-02-13

Swiss Franc Rates Coin Note
The pound to Swiss franc exchange rate has been steadied following comments from Mark Carney during a briefing on the global economy at the Barbican centre in London yesterday. I was fortunate to be in attendance and was struck by Carney’s confident manner, although he highlighted some major risks ahead which would be key for GBP/CHF rates.

Read More »

Scandals hurt Swiss Business Reputation in 2018

2019-02-13

by

2019-02-13

Switzerland’s reputation as a place to do business took a serious hit last year following various scandals, from corporate bank fraud to illegal subsidies. The Swiss Economy Reputation Index 2018external link, published on Tuesday by Basel-based consultancy Commslab and the fög research institute at the University of Zurich, dropped for the fifth consecutive quarter, reaching its lowest level since July 2014.

Read More »

Quantum Metal Lease #1 (gold)

2019-02-13

by

2019-02-13

Offers for Quantum Metal
Monetary Metals leased gold to Quantum Metal, to support the growth of its gold distribution business through retail bank branches. The metal is held in the form of retail Perth Mint bars.

Read More »

FX Daily, February 12: Dollar Buying Pressure Subsides

2019-02-12

by

2019-02-12

The Dollar Index's eight-day advance is in jeopardy. Although the greenback recorded new highs against some major currencies, the momentum appears to be stalling. The news stream is constructive as a compromise seems to have been reached to avoid another US government shutdown, and there is some optimism that the US and China will strike a deal even if not by March 1.

Read More »

Switzerland investigating Venezuela-linked corruption

2019-02-12

by

2019-02-12

Switzerland’s attorney general has opened an investigation into a corruption case involving Venezuela, according to a weekend report published by Schweiz am Wochenende. The Latin American nation is in the grips of a major political, economic and social crisis. According to the prosecutor's statement to the weekly, proceedings were initiated at the end of 2017 against unknown persons “in the context of the events in Venezuela”.

Read More »

We’re Overdue for a Sell-Everything/No-Fed-Rescue Recession

2019-02-12

by

2019-02-12

Federal government 2005-2015
We're way overdue for a sell-everything recession, one that the Fed will only make worse by pursuing its usual policies of lowering interest rates and goosing easy money. As I noted last week, central banks, like generals, always fight the last war--until the war is lost. 

Read More »

Large Gold Bullion Shipment Moves From London to Dublin Gold Vaults As Brexit Concerns Deepen

2019-02-12

by

2019-02-12

-Large Gold Bullion Shipment Moves From London to Dublin Gold Vaults As Brexit Concerns Deepen. – Growing demand from investors to relocate tangible assets out of the UK. – “Zurich continues to be the most sought-after location for storage, but Dublin has already surpassed Hong Kong and will likely usurp the second spot from London”.

Read More »

What They Don’t Want You to Know about Prices, Report 10 Feb

2019-02-11

by

2019-02-11

Gold and Silver Price
Last week, in part I of this essay, we discussed why a central planner cannot know the right interest rate. Central planner’s macroeconomic aggregate measures like GDP are blind to the problem of capital consumption, including especially capital consumption caused by the central plan itself.

Read More »

FX Daily, February 11: Dollar Starts New Week on Firm Note

2019-02-11

by

2019-02-11

Lifted by the re-opening of Chinese markets after the week-long Lunar New Year holiday, global equities are trading firmer. Outside of Japanese markets that were closed, the large markets in Asia--China, Taiwan, South Korea, and Hong Kong advanced.

Read More »

Swiss Consumer Price Index in January 2019: +0.6 percent YoY, -0.3 percent MoM

2019-02-11

by

2019-02-11

Switzerland Consumer Price Index (CPI) YoY, January 2018
The consumer price index (CPI) fell by 0.3% in January 2019 compared with the previous month, reach-ing 101.3 points (December 2015 = 100). Inflation was 0.6% compared with the same month of the pre-vious year. These are the results of the Federal Statistical Office (FSO).

Read More »

FX Weekly Preview: Little Resolution in the Week Ahead

2019-02-11

by

2019-02-11

According to legend, the person who unraveled the Gordian Knot would rule the world. No one succeeded until Alexandar the Great took his mighty sword and sliced the knot in half. A young boy saw him afterward, crying on the steps of the Temple of Apollo. "Why are you crying?" the boy asked, "you just conquered the world. "Yes'" Alexander wept, " now there is nothing else for me to do."

Read More »

Train delay data queries image of Swiss railways

2019-02-11

by

2019-02-11

Trains operated by the state-owned Swiss national railway operator are less punctual than company statistics make believe. A private website, launched in 2017 and compiled from data provided by the transport ministry, found that on average one in six intercity trains – or just under 84% - operated by the Federal Railways is late. That is, it arrives at its destination with a delay of at least three minutes.

Read More »

2019: The Three Trends That Matter

2019-02-11

by

2019-02-11

Look no further than Brexit in Britain, the yellow vests in France and the Deplorables in the U.S. for manifestations of a broken social contract and decaying social order. Among the many trends currently in play, Gordon Long and I discuss three that will matter as 2019 progresses: 2019 Themes (56 minutes).

Read More »

Telecoms firms awarded 5G mobile frequencies

2019-02-10

by

2019-02-10

The Swiss government has raised CHF380 million ($379 million) from auctioning fifth-generation (5G) mobile radio frequencies, it said on Friday. The three Swiss main providers, Swisscom, Sunrise Communications and privately owned Salt, each received part of the spectrum after newcomer Dense Air dropped out of the bidding.

Read More »

Swiss start-ups to benefit from multi-million fund

2019-02-10

by

2019-02-10

Start-ups and innovative small and medium-sized businesses are to be encouraged to stay in Switzerland thanks to a new fund of up to CHF500 million ($499 million). The initiative, from Swiss Entrepreneurs Foundation (SwissEF) and launched on Thursday, has the backing of some heavy hitters in the business world, including insurer Mobiliar and banks UBS and Credit Suisse.

Read More »

Brace for Impact

2019-02-10

by

2019-02-10

Spending by the top 5% pulls away from the 95%
As credit-asset bubbles pop, the dominoes start falling. The economy is far more precarious than the surface boom/bubble suggests. A great many households, enterprises and municipalities are in overloaded boats whose gunwales are just a few inches above the water; the slightest wave will swamp and sink them.

Read More »

Cool Video: Noise or Signal?

2019-02-10

by

2019-02-10

From the second half of last week through the first half of this week, the S&P 500 rallied.  It surpassed our target of 2700 and made it to almost 2740, retracing more nearly 2/3 of the decline from the record high set last September. It stalled ahead of the 200-day moving average, which had previously offered support declines. 

Read More »

Sunrise confirms talks to buy Liberty Global’s Swiss unit

2019-02-09

by

2019-02-09

Switzerland’s Sunrise Communications Group has confirmed it is in talks to buy Liberty Global’s cable operator UPC Switzerland. The company said in a statement on Tuesday: “Sunrise confirms it is in discussions with Liberty Global regarding a possible acquisition of UPC Schweiz. Sunrise will only pursue a transaction that is strategically compelling and demonstrably value creative for its shareholders.”

Read More »

More Of What Was Behind December, And Not Just December

2019-02-09

by

2019-02-09

Rational Expectations
As more and more data rolls in even in this delayed fashion, the more what happened to end last year makes sense. The Census Bureau updated today its statistics for US trade in November 2018. Heading into the crucial month of December, these new figures suggest a big setback in the global economy that is almost certainly the reason markets became so chaotic.

Read More »