Asking the Right Questions
Mario Draghi and the lower “lower bound”….
In September 2014, ECB President Mario Draghi cut interest rates on their main refinancing operations, the marginal lending facility rate and the deposit facility to 0.05%, 0.30% and -0.20% respectively. At the time Draghi confirmed that “now we are at the lower bound, where…
A Karl Pilkington Perspective on Central Banks
Those who have heard of Karl Pilkington probably know him as the guy in the TV show An Idiot Abroad. However, it was the podcasts with Ricky Gervais and Stephen Merchant (co-creators of The Office) in the mid-2000’s that earned him cult status, for…
All eyes on Janet Yellen and the US Fed!
A major source of the market volatility in recent months has been the uncertainty around the outlook for interest rates in the US. This week will be eventful, with the US Federal Reserve holding their much anticipated monetary policy committee meeting, as market participants…
Market Recap: Week of August 10th 2015
Market Recap Global equity markets were mixed last week, with the major indices in Europe and Asia outperforming their US peers. Bond yields edged up slightly in Europe while the UK 10-year yield dropped 4bps to 1.97%, as the Bank of England’s Mark Carney…
Super-Thursday: Carney keeps the party going
Thursday marked the beginning of a new approach to monetary policy communications from the Bank of England (BOE), simultaneously releasing their decision on interest rates, the minutes from that meeting and the quarterly inflation report, which sets out detailed economic analysis and inflation projections…
Market Recap: Week of July 20th 2015
Market Recap Global equity markets recorded strong gains last week, buoyed by the perceived end to the Greek crisis, as the Greek government conceded to the demands of their creditors to remain in the single currency. In Europe, the FTSE Eurofirst 300 closed up…
Greek crisis intensifies, the known unknown!
The Greek drama intensified last week causing markets to move erratically. The on-again, off-again deal between Greece and its creditors is fraying on investors’ nerves as the ending is becoming way too close to call. Early week gains on news that an agreement was…
Equity market valuations are “quite high”
Central bankers have not covered themselves in glory in the past when timing turning points in financial markets and real estate, and hence when they should take away the punch bowl.
Market Recap: Week of May 4th 2015
Market Recap: stronger Euro hurts European equities Most of the major equity indices were in the red last week, following weaker than expected economic data, most notably weak first quarter GDP data from the US and the UK.
Ben Bernanke v Wall Street Journal
Former Fed Chairman Ben Bernanke has been making waves since his retirement from the US Federal Reserve in 2013. While his easy monetary policy stance earned him the nickname “Helicopter Ben”, at $250,000 a speech Bernanke is bringing easy money to a whole new…
