Tag Archive: newsletter

The Future is Already Here–It is Just Not Evenly Distributed

2018-11-11

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2018-11-11

When William Gibson would say that "the future is already here-it is just not evenly distributed," he was referring to how wealth and location determine one's access to technological advances (the future). Yet it equally can apply to the US-Chinese relationship.

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UBS prepares to fight US mortgage-backed securities lawsuit

2018-11-10

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2018-11-10

UBS Group AG, Switzerland’s largest bank, says it will “vigorously” contest a United States Department of Justice lawsuit concerning mortgage-backed securities it sold in the run-up to the 2008 global financial crisis. In a statement issued on Wednesday, UBS said it had been advised that the DOJ intends to file a civil complaint as early as Thursday “related to UBS's issuance, underwriting and sale of residential mortgage-backed securities (RMBS)...

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Fed Sticks To Script, Enjoys the Sweet Spot

2018-11-10

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2018-11-10

The Federal Reserve kept policy on hold, and its sparse statement gave little clue as to what it makes of the pressures in the money markets or the weakness in the housing market.  The effective Fed funds rate is bumping against the cap provided by the interest rate on reserves.  Some repo rates, like SOFR (the intended replacement for LIBOR), have on occasion poked above what should be the ceiling.

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FX Daily, November 09: Greenback Stabilizes at Higher Levels

2018-11-09

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2018-11-09

The US dollar's gains scored in the wake of the Fed's signal that will continue on course to gradually hike rates have been extended. Most emerging market currencies are lower as well.  Equity markets are heavy.  Bond yields in Europe and US are a little lower, with the exception of Italian bonds. 

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Cryptoasset start-up backed by Swiss banking heavyweights

2018-11-09

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2018-11-09

Some of the doyens of the Swiss financial industry, including former Swiss National Bank president Philipp Hildebrand and ex-UBS CEO Peter Wuffli, have joined the cryptoasset revolution with new financial services operator Sygnum. The Swiss-Singapore enterprise announced itself suddenly on Thursday after operating in stealth mode for months.

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Why Are so Few Americans Able to Get Ahead?

2018-11-09

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2018-11-09

Real Median Household Income in the U.S. 1990-2018
Our entire economy is characterized by cartel rentier skims, central-bank goosed asset bubbles and stagnating earned income for the bottom 90%. Despite the rah-rah about the "ownership society" and the best economy ever, the sobering reality is very few Americans are able to get ahead, i.e. build real financial security via meaningful, secure assets which can be passed on to their children.

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Sterling hits highest buying level against Swiss Franc since August

2018-11-08

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2018-11-08

The Pound has made good gains against the Swiss Franc over the course of November so far, hitting the highest level we have seen since August and smashing through the 1.30 level. Sterling strength: Rumours of Brexit deal agreement lead to Sterling boost The main reasons behind the rise in value of Sterling is due to positive vibes surrounding Brexit.

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Harmful Modern Myths And Legends

2018-11-08

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2018-11-08

Germany Real GDP, Q3 2018
Loreley Rock near Sankt Goarshausen sits at a narrow curve on the Rhine River in Germany. The shape of the bluff produces a faint echo in the wind, supposedly the last whispers of a beautiful maiden who threw herself from it in despair once spurned by her paramour. She was transformed into a siren, legend says, a tantalizing wail which cries out and lures fishermen and tradesmen on the great river to their death.

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Gold ETFs See Strong Demand In Volatile October After Robust Global Gold Demand In Q3

2018-11-08

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2018-11-08

GDT Q3 2018
Gold ETFs saw inflows in volatile October as investors again hedged risk. Gold ETFs see demand of 16.5 tonnes(t) in October to total of 2,346t, the equivalent of US$1B in inflows. Global gold demand was robust in Q3 – demand of 964.3 tonnes – plus 6.2t yoy.

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New Swiss broadcasting fee starts next year

2018-11-08

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2018-11-08

After a referendum in March 2018 threatened to axe Switzerland’s costly broadcasting fee, the government put forward a counter proposal, which was adopted when 71.6% of voters voted to keep the fee. On 1 January 2019, the lower fee contained in the government’s plan will come into force. Next year, instead of CHF 451, each household will need to cough up CHF 365.

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Japan services PMI rebounds strongly in October

2018-11-08

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2018-11-08

The domestic economy is retaining its momentum, but external headwinds are building.The Japanese services purchasing managers index (PMI) rose sharply in October, surging by 2.2 points to 52.4, after a notable drop in September. The manufacturing PMI rose as well, but more moderately, reaching 52.9 in October from 52.4 in September.

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Swiss franc still highly valued, but no policy change

2018-11-07

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2018-11-07

The Swiss franc, investment in arms, and the housing market were some of the issues the government discussed with the chairman of the Swiss National Bank. SNB chairman Thomas Jordan told the government that he sees the Swiss currency as highly valued and warned of the continuing risks of bubbles in the housing market.

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FX Daily, November 07: Equities and Bonds Jump While the Dollar Slumps

2018-11-07

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2018-11-07

The dollar has fallen against nearly every currency. It had been moving lower at the start of the week, but what seems like a correction broadened and deepened following the US midterm election. The outcome was largely in line with expectations for the Republicans to hold the Senate and the Democrats to take a majority of the House for the first time since 2010.

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‘Lighthouse’ Planned for Swiss Mountain Top

2018-11-07

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2018-11-07

Plans have been presented to upgrade a popular tourist destination on a mountain top in central Switzerland. As part of the CHF100 million ($100 million) project on the Titlis, a building made of steel and glass will be added to the existing tower for technical installations on 3,028 metres (9,934 feet) altitude.

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Euro and Yen Outlook

2018-11-07

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2018-11-07

Broadly speaking, the risk is that the dollar's cyclical advance is not complete. The drivers will likely remain in place through at least the middle of next year. Additional gradual interest rate hikes by the Federal Reserve and a favorable policy mix underpin the dollar.

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Is This “The Most Important Election of our Lives” or Just Another Distraction?

2018-11-07

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2018-11-07

The problem isn't polarization; the problem is neither flavor of the status quo is actually solving any of the nation's most pressing system problems. As I write this at 5 pm (Left Coast) November 6, the election results are unknown. While various media are trumpeting this as "the most important election of our lives," the less eyeball-catching, emotion-triggering reality is this election is nothing but another distraction.

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FX Daily, November 6: US Goes to the Polls

2018-11-06

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2018-11-06

Overview: The US dollar is narrowly mixed against the major currencies today, largely consolidating its recent losses. Equities are mixed.  In Asia, Japan, Australia, and Hong Kong equities gained around 1%, while most other bourses were softer.  In Europe, the Dow Jones Stoxx 600 is little changed in late morning turnover.

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Builders Resume Street Protests

2018-11-06

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2018-11-06

Construction workers have continued their protests against worsening labour conditions in Switzerland. An estimated 4,000 people took to the streets of Lausanne on Monday in the latest stage of a series of short regional strikes underway since mid-October.

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Talking Turkey

2018-11-06

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2018-11-06

Turkey’s economic challenges arise from the imbalances created during the economic boom that saw poverty halved between 2002 and 2011, extensive urbanization, and integration in the world economy through trade and capital flows. The dramatic economic changes saw the rise of Erdogan, who was re-elected as President for a second term in June. His party (AKP) is joined by the Nationalists (MHP).

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Wizard’s First Rule, Report 4 Nov 2018

2018-11-06

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2018-11-06

Gold and Silver Price
Terry Goodkind wrote an epic fantasy series. The first book in the series is entitled Wizard’s First Rule. We recommend the book highly, if you’re into that sort of thing. However, for purposes of this essay, the important part is the rule itself: “Wizard’s First Rule: people are stupid.” “People are stupid; given proper motivation, almost anyone will believe almost anything.

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