Tag Archive: newsletter
USD/CHF technical analysis: Greenback loses steam against Swissy, trades near 0.9930 level
USD/CHF erased its intraday gains, settling near the 0.9930 level. Support is seen at the 0.9920 level. On the daily chart, USD/CHF is trading in a range below its 200-day simple moving average (DMA). The spot is holding just above the 50 SMA today at the 0.9921 level.
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No Swiss citizenship for WEF founder Schwab, reports say
World Economic Forum founder Klaus Schwab will not be receiving honorary Swiss citizenship, despite the idea having being mooted earlier this year. Such an honorary conferral of the passport has no basis in Swiss law, the Federal Justice Office announced on Tuesday, after it was contacted by the daily Südostschweiz newspaper.
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Now That We’ve Incentivized Sociopaths–Guess What Happens Next
As long as central banks create and distribute trillions in conscience-free credit to conscience-free financiers and corporations, the incentives for sociopathy only increase. "Sociopath" is a word we now encounter regularly in the mainstream media, but what does it mean? Here is a list of 16 traits, many of which are visible in lionized corporate and political leaders and entrepreneurs.
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FX Daily, November 12: Farage Declares Truce with Tories after being Offered a Peerage, Underpins Sterling
Global capital markets are calm as investors look for a new catalyst. The MSCI Asia Pacific Index snapped back after posting its first back-to-back decline in a month. All the equity markets were higher, but Australia. The Nikkei, Kospi, and Taiex led the advance with about a 0.8% gain. European shares closed firmly near session highs yesterday, even if still lower on the day, and there has been some follow-through buying today.
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Billionaires’ club shrinks as economy wobbles
The world lost 57 billionaires last year as economic woes and the unexpected strengthening of the US dollar wiped $388 billion (CHF386 billion) from their combined wealth. Switzerland had three fewer billionaires; the 33 who remain saw their bank accounts shrink by $16 billion.
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For Labor And Recession, The Bad One
There’s a couple of different ways that Unit Labor Costs can rise. Or even surge. The first is the good way, the one we all want to see because it is consistent with the idea of an economy that is actually booming. If workers have become truly scarce as macro forces sustain actual growth such that all labor market slack is absorbed, then businesses have to compete for them bidding up the price of marginal labor.
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The Real Boom Potential
For the last five years Larry Summers has called it secular stagnation. It’s the right general idea as far as the result, if totally wrong as to its cause. Alvin Hansen, who first coined the term and thought up the thesis in the thirties, was thoroughly disproved by the fifties. Some, perhaps many Economists today believe it was WWII which actually did the disproving.
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The Feds Spend More on National-Debt Interest Than You Think
Recently, the Treasury Department reported a 26% increase in the federal budget deficit with a 2019 deficit of $984 billion. The reported data on the budget can be misleading. You might think that a budget deficit is the amount of spending that exceeds budget revenue, in other words, the amount of borrowing needed to make up for this shortfall. However, in the world of Washington D.C., not all spending is counted as spending and it’s possible for...
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FX Daily, November 11: Dollar Consolidates and Equities Follow Asia Lower
Overview: Escalating violence in Hong Kong and the continued fall in Chinese producer prices weighed on equities in Asia Pacific trading. The MSCI Asia Pacific Index has risen nearly 7% during the five-week rally and is off to a weak start this week. Hong Kong's Hang Seng fell around 2.6%, its biggest loss in three months, and China's CSI 300 was off 1.75%. Nearly all the local markets fell but Australia.
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Billionaire Boom “Has Now Undergone A Natural Correction”
Over the last five years ending in 2018, the billionaire boom created more billionaires than the world has ever seen. These financial elites saw their wealth increase by more than a third over the same period, but as soon as 2018 rolled around, the billionaire boom deflated, according to a new UBS/PwC Billionaires Report.
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French-speaking cantons biggest winners from next year’s fiscal transfers
The amount of money paid by “rich” cantons to “poor” ones will rise by CHF 61 million to CHF 5.3 billion in 2020, according to a recent government press release. The only French-speaking canton paying will be Geneva. All of the rest will see the sums they receive rise compared to 2019. In 2020, Geneva will pay CHF 275 million, down slightly from the CHF 300 million it paid in 2019.
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FX Weekly Preview: Caution: Prices Diverging from Macro Drivers
Sometimes the news drives the markets and but now it seems that the markets are driving the news. The dramatic swing in market sentiment from fearing a repeat of Q4 18 and the pessimism of World Bank/IMF forecasts have been cast aside for a few data points and a tease from the world's two largest economies that an agreement to begin a de-escalation process not just extending the third tariff truce.
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EM Preview for the Week Ahead
EM was mostly lower last week, as doubts crept in about the recent trade optimism. Some events also served as reminders of idiosyncratic EM risk that can’t be overlooked, such as downgrade risks (South Africa), failed oil auctions (Brazil), and violent protests (CLP). EM may remain on its back foot until we get further clarity on the US-China talks, but we remain confident in our call that a deal will be struck soon that lower existing tariffs.
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Riding the Type 3 Mega Market Melt Up Train
Beta-driven Fantasy. The decade long bull market run, aside from making everyone ridiculously rich, has opened up a new array of competencies. The proliferation of ETFs, for instance, has precipitated a heyday for the ETF Analyst. So, too, blind faith in data has prompted the rise of Psychic Quants… who see the future by modeling the past.
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Why Government Should not Fight Deflation
For most experts, deflation is considered bad news since it generates expectations of a decline in prices. As a result, they believe, consumers are likely to postpone their buying of goods at present since they expect to buy these goods at lower prices in the future.
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Avenir Suisse erteilt Schweizer Staatsfonds klare Absage
Kein Sparschweinchen aus SNB-Pfründen. (Bild: Shutterstock.com/ valeriiaarnaud)Das Vermögen von Norwegens erfolgreichem Staatsfonds hat die Billionen-Franken-Schwelle geknackt und erntet entsprechende mediale Aufmerksamkeit. Dies lässt auch in der Schweiz Forderungen nach einem ähnlichen Konstrukt aufleben, um vorhersehbare AHV-Finanzierungslücken dereinst zu decken.
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More than 100 members of Extinction Rebellion convicted in Switzerland
In September 2019, groups of people belonging to the group Extinction Rebellion blocked two road bridges in Lausanne. Local police cleared the bridges by removing, in some cases carrying, protesters away. On 7 November 2019, 117 of the people involved in the bridge protests were convicted and fined for breaking Switzerland’s penal code, according to RTS.
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Red Flags Over Labor
Better-than-expected is the new strong. Even I’m amazed at the satisfaction being taken with October’s payroll numbers. While you never focus too much on one monthly estimate, this time it might be time to do so. But not for those other reasons.
Sure, GM caused some disruption and the Census is winding down, both putting everyone on edge. The whisper numbers were low double digits, maybe even a negative headline estimate.
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A Perfect Example of the Euro$ Squeeze
Germany’s vast industrial sector continued in the tank in September. According to new estimates from deStatis, that country’s government agency responsible for maintaining economic data, Industrial Production dropped by another 4% year-over-year during the month of September 2019. It was the fifth consecutive monthly decline at around that alarming rate.
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