Category Archive: Finance
ECB – Draghi & Tapering
The European Central Bank (ECB) is expected to begin reducing its bond purchases gradually tampering its stimulation program of Quantitative Easing (QE). Nevertheless, reliable sources tell of the ECB being extremely cautious fearing what will happen if buyers do not appear and rates begin to rise sharply. The difference between the ECB and the Fed […]
The Benefits And Costs Of A U.S. Tax Cut
from the International Monetary Fund — this post authored by Sandra Lizarazo, Adrian Peralta-Alva, and Damien Puy U.S. lawmakers getting ready to rewrite the nation’s tax code have a fundamental question to answer: What are the priorities for tax reform? Do you want faster growth? Less income inequality? A tax cut that doesn’t increase the budget deficit? In […]
Case Study: How 3G Capital Squeezed More Out Of Heinz
In March of 2013, 3G Capital and Berkshire Hathaway closed on the acquisition of Heinz, privatizing this foodmaker for a total acquisition price (including debt) of around $28 billion. 3G’s cash contribution (the acquisition made significant use of debt) was just $4 billion. Fast forward to 2015, and 3G Capital and Berkshire Hathaway made another transformative merger […]
Dollar Bulls Shows Some Fight; Gold Confirms Monthly Breakout
While it was a dull week for FX futures positioning heading into (August) month-end, it was a much more interesting story in how the US dollar managed to overcome another spike down to fresh (20-month) lows on Monday, and then Friday’s disappointing (US) jobs report. After what seemed like such a bleak start to last […]
USD/JPY And AUD/USD Forecast – Monday, Sept. 4
USD/JPY The US dollar had a volatile session on Friday as the jobs number came out less than anticipated. Because of this, the markets sold off rather drastically, but found enough support to turn around and bounce above the 110 level again. By doing so, this shows the resiliency of this market but I also […]
ECB Preview: Low Expectations Could Send The Euro Shooting Higher
The European Central Bank does not like the strength of the euro. We know that already from the previous rate decision. President Mario Draghi tried to sound dovish but failed to convince markets. It does not mean that they are giving up. Further “sources,” say that the highly-anticipated decision about QE tapering could wait until December. These […]
Gold Sentiment
We should see a pullback perhaps in gold starting even this week. Video Length: 00:04:49
Precious Metals Flash-Crash After Silver Surged To 4-Month Highs, Gold Nears Election-Day Spike Highs
While stocks have been limping higher since around 2am ET (following headlines on an imminent ICBM launch) they remain lower from Friday’s close: But precious metals the biggest gainers of post-North Korean “hydrogen bomb” testing safe haven flows. Silver broke above resistance at early June highs to test $18 and the highest levels since April 25th. But […]
SPX: Rumblings
Over the past month, there’s a boring, tedious pattern that seems to be repeating itself: (1) The impoverished, backwards, freakish hermitage known as North Korea threatens the world with some ill-conceived rumblings about a nuclear weapon; (2) Worldwide markets (with ever-decreasing size) have a knee-jerk reaction; (3) When it’s clear that Kim Jung-un is completely […]
FX Markets Look To RBA, BOE, And ECB After US Labor Day
The RBA’s meeting this week is expected to go off without much fanfare. Overnight index swaps are pricing in exactly a 1% chance of a rate move at the coming meeting: 1% chance of a cut; 0% chance of a hike. In recent weeks, economic data has started to fall below expectations, with the Citi […]
