Tag Archive: newsletter

Libra stablecoin project ‘no threat’ to financial system

2019-09-30

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2019-09-30

Facebook’s Libra cryptocurrency poses no threat to central banks or to financial law and order, the head of the Geneva-based Libra Association tells swissinfo.ch. Many regulators, politicians and central banks have reacted with alarm to the proposed new digital payments system.

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BNP Paribas bank accused of complicity in Sudan rights abuses

2019-09-29

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2019-09-29

Victims of rights abuses in Sudan have filed a legal complaint against the French BNP Paribas bank and its Swiss subsidiary, accusing them of complicity in crimes against humanity, genocide and torture allegedly committed in Darfur between 2002 and 2008.

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Dollar Firm as US Economy Continues to Outperform

2019-09-29

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2019-09-29

Political uncertainty is likely to persist in the US; the big unknown is whether this will impact the US economy. US core PCE reading will be of particular interest and is expected to rise 1.8% y/y; Quarles (voter) and Harker (non-voter) speak. Dovish BOE comments are weighing on sterling; France reported weak CPI and consumer spending data.

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USD/CHF technical analysis: Bulls trying to defend multi-week old ascending trend-channel

2019-09-29

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2019-09-29

USD/CHF daily chart, June - October 2019
Fading safe-haven demand undermined the CHF demand and extended some support. Bears await a sustained weakness below short-term ascending channel support. The USD/CHF pair struggled to register any meaningful recovery and remained well within the striking distance of near three-week lows set in the previous session, coinciding with the lower end of a multi-week-old ascending trend-channel.

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Pets Are Now as Unaffordable As College, Housing and Healthcare

2019-09-28

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2019-09-28

Price Changes, 1996-2016
Like so many other things that were once affordable, owning pets is increasingly pricey. One of the few joys still available to the average household is a pet. At least this is what I thought until I read 5 money-saving tips people hate, which included the lifetime costs of caring for a pet. It turns out Poochie and Kittie are as unaffordable as college, housing and healthcare (and pretty much everything else).

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World’s Largest Gold ETF Sees Holdings Rise 1.8 percent to 924.94 Tonnes In One Day

2019-09-28

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2019-09-28

Spot Gold Price USD
◆ Gold prices have inched 0.3% higher today as a sharp drop of nearly 2% yesterday has attracted bargain hunters. ◆ Gold tested support at $1,500/oz after another peculiar sell off in the futures market saw prices fall $30 in two hours on the COMEX yesterday with most of the selling coming after European and London markets had closed.

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Chasing wealth managers is a risky business

2019-09-28

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2019-09-28

Zurich is a sober and orderly city, so a fierce altercation near the Swiss National Bankexternal link between a banker to the world’s billionaires and a private detective who was trailing him is worthy of John Le Carré. It is all the more lurid that Credit Suisse ordered surveillance of Iqbal Khan after he left abruptly for its rival UBS.

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FX Daily, September 27: Markets Limp into the Weekend with the Euro Languishing at New Lows and Sterling under Pressure

2019-09-27

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2019-09-27

Overview: Equities remain under pressures. The MSCI Asia Pacific Index lower today, though Chinese and Australian shares were firmer. It is the second consecutive week the benchmark has fallen. European equities are firmer, but not enough to offset the losses earlier this week and are set to snap a five-week advance.

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US stamps policy on the Universal Postal Union

2019-09-27

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2019-09-27

I think it’s fair to say many people may not have heard of the Universal Postal Union (UPU). Its unassuming headquarters sits peacefully in a leafy suburb of Bern. It is the only United Nations agency to grace Switzerland’s capital with a presence. In fact, the UPU is older than the UN itself. Founded in 1874, its mandate is to regulate the booming new (in the 19th century) international communication of letters and parcels.

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Dollar Firm Despite Rising US Political Uncertainty

2019-09-27

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2019-09-27

The dollar continues to benefit despite US political uncertainty President Trump claimed to be getting “closer and closer” to a trade deal with China; we are very skeptical. There is a lot of US data to be reported and a heavy slate of Fed speakers today.

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Here’s How We Are Silenced by Big Tech

2019-09-27

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2019-09-27

This is how they silence us: your content has been secretly flagged as being "unsafe," i.e. "guilty of anti-Soviet thoughts;" poof, you're gone. Big Tech claims it isn't silencing skeptics, dissenters and critics of the status quo, but it is silencing us. Here's how it's done. Let's start with Twitter.

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Gold At 3 Week High As Stocks and Dollar Fall On Trump’s Hard Line Stance Against Iran and China

2019-09-27

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2019-09-27

Best performing currencies in 2019
◆ Gold has edged higher to reach three week highs at $1,535/oz today after Trump took a hard-line stance on China and Iran during his U.N. speech. ◆ Stocks fell in the U.S. yesterday and today in Europe on increasing political turmoil in the U.S. and the UK; Concerns about the global economy and the outlook for stocks is enhancing gold’s safe haven appeal.

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USD/CHF consolidates gains above 0.9900, limited by 0.9950

2019-09-27

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2019-09-27

USD/CHF between two key levels
US Dollar rises versus Swiss Franc for the second-day in-a-row. USD/CHF testing key 200-day simple moving average and 0.9950. The USD/CHF rose on Thursday, holding firm above 0.9900. The pair peaked on European hours at 0.9947 and then pulled back finding support at 0.9900. The bounced back to the upside unable to challenge daily highs and is trading at 0.9930.

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FX Daily, September 26: Greenback Remains Firm

2019-09-26

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2019-09-26

Overview: A compelling narrative for yesterday's disparate price action is lacking. A flight to safety, which is a leading interpretation, does not explain the weakness in the yen, gold, or US Treasuries. Month- and quarter-end portfolio and hedge adjustments may be at work, but the risk is that it is a black box: is difficult to verify and lends itself to misuse as a catch-all explanation.  Nevertheless, the rise in US equities yesterday helped...

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Number of people with debt problems rises in Switzerland

2019-09-26

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2019-09-26

The number of people with debts in default continues to rise in Switzerland. At the end of July 2019, 561,000 people, 6.5% of the population, were unable to service their debts according to the price comparison website comparis.ch. The figures, based on data from the credit analysis company CRIF include those who have failed to make repayments and are being pursued by creditors or have declared bankruptcy.

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The SNB Is a Passive Clearing House Rather Than an Active Currency Manipulator

2019-09-26

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2019-09-26

This post is a long excursion to make two simple points: The SNB is IMHO just acting in a passive way as a clearing house for (massive) capital inflows. It is not actively managing the exchange rate. A rate of increase of sight deposits of 2.5bn per week (100bn p.a.) is not extraordinary considering the need to recycle a current account surplus of 80bn p.a.

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Waiting on the Calvary

2019-09-26

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2019-09-26

WTO Global Trade, 2007-2019
Engaged in one of those protectionist trade spats people have been talking about, the flow of goods between South Korea and Japan has been choked off. The specific national reasons for the dispute are immaterial. As trade falls off everywhere, countries are increasingly looking to protect their own. Nothing new, this is a feature of when prolonged stagnation turns to outright contraction.

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Money Markets: Sizing Up the Cavalry

2019-09-26

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2019-09-26

Money Markets Equivalents, 2017-2019
There’s been an unusual level of honesty coming out of Liberty Street of late. Not total honesty but certainly more than the usual nothing denials and dismissals. If you don’t immediately recognize the reference, that’s the street in NYC where FRBNY and its Open Market Desk resides. What is supposed to be the moneyed centered of the universe. After all, as Ben Bernanke famously threatened in November 2002, that’s the printing press.

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Dollar Firm as Risk-Off Impulses Return

2019-09-25

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2019-09-25

Markets have moved into risk-off mode from a confluence of events emanating from the US. Speaker of the House Pelosi formally launched a formal impeachment inquiry; DOJ inserted itself into Trump’s fight with New York state. Trump’s speech to the UN General Assembly yesterday was noteworthy for its belligerence.

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FX Daily, September 25: Risk Appetite Stymied: Dollar Recovers while Stocks Slide

2019-09-25

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2019-09-25

Overview:  Global equities and fixed income reacted to the large moves yesterday in the US when the 10-year note yield fell eight basis points, and the S&P 500 fell by 0.85%.  Investors have focused on three separate developments and two of which came from President Trump's speech at the UN.  He dismissed the likelihood of a short-term trade deal with China and was critical of the large social media platforms.

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