Tag Archive: newsletter

Massive Deficit Spending Greenlights Waste, Fraud, Profiteering and Dysfunction

The nice thing about free to me money from any source is the recipients don't have to change anything. Free money is the ultimate free-pass from consequence and adaptation: instead of having to make difficult trade-offs or suffer the consequences of profligacy, the recipients of free money are saved: they can continue on their merry way, ignoring the monumental dysfunction of their lifestyle.

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Never Mind the Bollocks, Here’s the Avocado Toast, Report 16 Sep 2018

For about ten bucks a month, Netflix will give you all the movies you can watch, plus tons of TV show series and other programs, such as one-off science documentaries. They don’t offer all movies, merely more than you can watch. Oh, and there are no commercials. They don’t just give you old BBC reruns, which you know they can get for a pittance.

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Der Nationalbank sind die Hände gebunden

EZB-Präsident Mario Draghi konstatierte letzte Woche zufrieden, dass die aktuellen Turbulenzen in einzelnen Staaten auch dort bleiben und nicht andere Länder anstecken. Seine Kollegen in der Nationalbank, die diese Woche ihren geldpolitischen Entscheid fällen, dürften das etwas anders sehen.

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Credit Suisse found lacking in fight against money laundering

Swiss bank Credit Suisse has failed to meet its obligations to prevent money laundering, says Switzerland’s financial supervisory authority. According to FINMA, the Financial Market Supervisory Authorityexternal link, the misconduct is related to the alleged corruption cases around FIFA, world football’s governing body, and the oil companies Petrobas and PDVSA.

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FX Weekly Preview: Dollar Pullbacks Remain Shallow as Rate Differentials Widen

The trajectory of monetary policy in the US and Europe has been fairly clear. There is practically no doubt that the Fed will hike rates on September 26. Despite softer than expected PPI and CPI figures, the market has become more confident of another move in December. The Federal Reserve's balance sheet unwind reaches its maximum velocity of $50 bln a month in Q4.

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Emerging Markets: Preview of the Week Ahead

EM FX ended mixed in Friday, capping off an up and down week. RUB and TRY initially firmed on their respective rate hikes but gave back some of those gains heading into the weekend. Trade tensions are likely to remain high, as press reports suggest President Trump is pushing ahead with tariffs on $200 bln of Chinese imports even as high-level talks are planned.

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Some Swiss Rail ticket machines set to disappear

Ticket machines once replaced many of the people selling ticket from counters. Now the internet and mobile phones threatens ticket machines. As more and more people use dash past ticket machines with an electronic train ticket in their pocket, Swiss Rail is looking at phasing out some machines according to various newspapers including 20 Minutes.

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Basel-EuroAirport rail link should open in 2028

The EuroAirport Basel-Mulhouse-Fribourg Airport should be accessible by rail by 2028. Project leaders are convinced that trains will replace the buses currently connecting the city of Basel to the airport within ten years. The French national railway company SNCF said on Thursday that is it is normal that financing for a project of this magnitude is not yet fully secured in France.

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Downslope CPI

Cushing, OK, delivered what it could for the CPI. The contribution to the inflation rate from oil prices was again substantial in August 2018. The energy component of the index gained 10.3% year-over-year, compared to 11.9% in July. It was the fourth straight month of double digit gains.

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European labour market remains in rude health

But there is room for further improvement.This week euro area employment data confirmed that labour market recovery remains on track. Employment grew at 0.4% q-o-q in Q2 2018, marking the 20th consecutive quarter of expansion. Employment is now 2.4% above its pre-crisis (2008) level. Since Q2 2013, 9.2 million jobs have been created in the euro area.

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Swiss agricultural policy costs households 2,500 francs a year, according to study

Broadly, Switzerland’s agricultural sector costs the country CHF 19.9 billion while contributing only CHF 3.4 billion, concludes a study published by the think tank Avenir Suisse. The CHF 19.9 billion cost the report’s authors calculate is made up of tax breaks and direct federal and cantonal payments to the sector (4.9b), the cost of artificially inflated consumer prices due to import restrictions (4.6b), environmental damage (7.3b), and the...

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ECB (Data) Independence

Mario Draghi doesn’t have a whole lot going for him, but he is at least consistent – at times (yes, inconsistent consistency). Bloomberg helpfully reported yesterday how the ECB’s staff committee that produces the econometric projections has recommended the central bank’s Governing Council change the official outlook. Since last year, risks have been “balanced” in their collective opinion.

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FX Daily, September 14: Dollar Losses Extended

The US dollar remains on the defensive after retreating yesterday.  Its losses against the most of the major and emerging market currencies are being extended today.  The combination of softer US inflation coupled with a less dovish than expected ECB, a Bank of England lifting growth forecasts, while warning that a Brexit without an agreement could spur higher mortgage rates, and a more aggressive rate hike by Turkey conspired to force the dollar...

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A successful bank should be boring

No changes to the ECB’s monetary stance and policy guidance mean we are holding to our forecasts for quantitative easing and rate hikes.The ECB made no change to its monetary stance and policy guidance at its 13 September meeting. The end of quantitative easing (QE) was confirmed for after December, following a final reduction in the pace of net asset purchases to EUR15bn per month in Q4 2018.Much of the focus was on the updated ECB staff...

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New long-haul budget airline from Basel launches fundraising

The idea is simple. Keep costs low by flying point-to-point, thus avoiding costly hubs, use one model of aircraft to contain pilot and aircraft maintenance costs, and charge passengers for everything from coffee to checked-in luggage. Southwest Airlines was first to launch the model and copycats like EasyJet followed.

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Europe Starting To Reckon Eurodollar Curve

We’ve been here before. Economists and central bankers become giddy about the prospects for success, meaning actual recovery. For that to happen, reflation must first attain enough momentum. If it does, as is always forecast, reflation becomes recovery. The world then moves off this darkening path toward the unknown crazy.

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FX Daily, September 13: Vulnerable To Disappointment

There is an eerie calm in the markets ahead of the highlight for the day and week. The central banks of the eurozone, UK, and Turkey hold policy meetings, and the US reports August CPI. The greenback is a mostly firmer, with the Australian dollar as the notable exception. On the one hand, we would note that is it higher for the fourth consecutive sessions, after finding some support near $0.7100 earlier in the week. 

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Swiss Producer and Import Price Index in August 2018: +3.4 percent YoY, unchanged MoM

The Producer and Import Price Index remained unchanged in August 2018 compared with the previous month. The index stood at 103.4 points (December 2015 = 100). Prices were higher in particular for pharmaceutical and chemical products, while scrap became cheaper. Compared with August 2017, the price level of the whole range of domestic and imported products rose by 3.4%.

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The Next Financial Crisis Is Right on Schedule (2019)

Neither small business nor the bottom 90% of households can afford this "best economy ever." After 10 years of unprecedented goosing, some of the real economy is finally overheating: costs are heating up, unemployment is at historic lows, small business optimism is high, and so on--all classic indicators that the top of this cycle is in.

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Is the tide turning for social media platforms in Switzerland?

The Swiss appear to be switching off from social media, according to a survey, which suggests that the image of Facebook and Twitter have taken a hit. Some 55% of the Swiss population used social media in 2017, down 4% compared with a year earlier, a media brand study for the consultancy firm Publicom revealed. The report, published on Wednesday, says that social media lost more users last year than print media.

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