UK Data Beats Expectations – GBP Rises
Better than expected numbers on all fronts. The UK trade balance deficit squeezes to 11.253 from a downward revised 12.35 billion. Manufacturing production is up 0.7% m/m and 2.7% y/y. Industrial output is also up 0.7% m/m on top of an upwards revision and 2.5% y/y. GBP/USD, which was sleepy ahead of the publication, is […]
Digital Democratization
I was in a conversation with a regulator about bank competition, and they wondered how I saw banks changing. In particular, they were concerned about collegiate – read that as bank cartels – actions by the banks to protect their own interests. I thought about it and said that I did not believe that banks […]
5 Stocks That Doubled In 2017 And Can Keep Soaring Higher
U.S. stock markets are now hitting all-time highs on a daily basis. Stocks have mostly rallied since last year’s election, with a booming U.S. economy, supportive monetary policy and robust corporate earnings being the key triggers. Expectations that the Trump administration’s proposed tax and regulatory reforms will help companies’ and consumers, have given investors further […]
British Pound – Where To From Here?
Last week, the Bank of England hiked interest rates for the first time in nearly a decade by 25 basis points. The rate hike was widely expected, and the BoE Governor Mark Carney hinted that future rate hikes would be limited and gradual. Despite the rate hike, the British pound sold off on the event. […]
The Inflation Of China’s Condition
One day after the China’s government reported disappointing but consistent trade figures, that country’s National Bureau of Statistics published inflation estimates that are being branded at least on this side of the Pacific as some degree of “hot.” As is usually the case, the characterization is wildly off. China is no closer now to an inflation problem, […]
Defining Crowding Out In An Open Economy
Gavin Ekins argues that it’s Time to Shoulder Aside “Crowding Out” As an Excuse Not to Do Tax Reform. From the introduction: Government budget deficits do absorb a portion of national or global saving, diverting the saving from supporting private investment. This is known as “crowding out.” However, saving is flexible both in magnitude and where […]
Perpetual Notes – China’s New Way To Hide Debt (Call It Equity)
The legacy of the soon-to-retire PBoC governor, Zhou Xiochuan, will be that in sharp contrast to his western brethren, he warned that China’s credit bubble would burst before the fact. Two weeks ago, Zhou warned during the Party Congress that China’s financial system could be heading for a “Minsky moment” due to high levels of […]
US-China Trade At Global Crossroads
Despite “America First” policies, President Trump’s economic agenda needs expanding trade with China. President Donald Trump began his grueling 12-day Asia tour amid US Special Counsel’s first indictments, which cast a shadow over the White House’s future. Nevertheless, Trump and President Xi Jinping were able to sign deals worth US$253 billion, which makes the visit […]
Bitcoin Price Doubles In Troubled Zimbabwe
A surprise political move by Zimbabwean president Robert Mugabe, who fired his deputy Emmerson Mnangagwa, has played havoc on the US dollar/bond note parallel exchange rate, as well as on Bitcoin price in the country. image courtesy of CoinTelegraph image courtesy of CoinTelegraph, Bitcoin was already trading at a highly inflated rate in the troubled African country as its […]
