Will Germany’s Bundesbank keep the European Central Bank from the fun of the “Summer of Stimulus”?
While other central banks–the Bank of England and the Bank of Japan, for example–are signaling their willingness to throw more cash at the global financial system in the wake of the Brexit vote that is likely to send the United Kingdom tumbling out of the European Union, Jens Weidmann, president of Germany’s Bundesbank, doesn’t want to play.
Add the Bank of England to the “Summer of Stimulus” list
“It now seems plausible that uncertainty could remain elevated for some time,” Mark Carney, head of the Bank of England said today in his second televised speech since the United Kingdom voted to leave the European Union. “The economic outlook has deteriorated and some monetary policy easing will likely be needed over the summer”
Why the post-Brexit crisis isn’t just like the others
Any post-Brexit crisis will will be a slow motion crisis driven by a gradual slowdown in economic growth in the United Kingdom, the European Union, Japan, China and the United States that results in a dimming of prospects for corporate earnings growth. The crisis will be interrupted periodically, as it has been in the last two days, by the hope that this time central banks will be able to intervene and get this or that economy growing again
Where do we go from here after the Brexit vote? Part I Go long Treasuries
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...Odds of a UK exit from the European Union fall but the Fed adds anxiety to the market on U.S. economy
Just as British bookmakers are soothing some financial market angst over the results of Thursday’s Brexit vote, Federal Reserve chair Janet Yellen is turning up the anxiety meter. Basically what Yellen said today is that the Fed is on watch to see whether the U.S. economy will show signs of improvement in growth. That’s a significant shift from last week when Yellen talked about watching to see when the economy showed signs of improvement.
Market has second thoughts on Fed’s decision to hold interest rates steady
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...U.S. economy and financial markets point Fed in different directions on interest rates for Wednesday decision
Pity the poor Federal Reserve. In making decisions about interest rates–in this case about whether or not to raise interest rates at its June, July or September meetings–it has to consider the condition of both the real economy and the financial markets. And right now the two realms are sending out different signals.
Is “leave the European Union” actually ahead in the June 23 Brexit vote?
The polls are in essence deadlocked in the June 23 vote on whether the United Kingdom should stay in the European Union or leave. That’s enough to create anxiety in the financial markets since no one can be certain how the referendum will come out. Adding to that anxiety is a sense that the polls may not be especially accurate this time around because of the demography of the vote
Saturday Night Quarterback says, For the week ahead expect…
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...
Much better than expected initial claims for unemployment report leads markets to “pause to consider”
The financial markets have stalled today with some minor pullback as investors and traders try to figure out what this morning’s better than predicted report on initial claims for unemployment means in the context of the worse than expected report of just 38,000 jobs created in May
Goldilocks gets some help from (most) data today
There wasn’t much in the economic data today to make the financial markets reconsider their belief in the return of Goldilocks. Global growth numbers supported the view that key world economies will turn in decent performances. But none were so strong as to suggest putting higher interest rates from the Federal Reserve back on the schedule.
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