Deflation is the scariest word! The FOMC statement last night managed somehow to avoid saying what surely should be what is on every member of the FOMCs’ lips- DEFLATION. The recent Federal Reserve Bank regional surveys have shown that inflation is falling and quickly, and the recent Business surveys from ISM in the US have […]
Dramatic moves in commodities — FIU
Taking stock of what has happened. The last week has seen dramatic moves in commodities and none more so than in Gold. There is lots of speculation as to what has caused this selling of commodities but the simple matter of fact is that there were more sellers than buyers at the levels of last […]
Chaotic Markets — FIU
Today was a day that the financial markets used to have back in 2008. It was a fairly quiet start to the European trading session which was dominated by a poor German 10yr Bund auction which saw German 10yr yields hit 1.675% at the end of the morning session. There had been some US Investment […]
Distortions are all over the markets again – shows so many in the market really lack the conviction of their statements — FIU
And the risk markets are always hoping for Central Banks to intervene and to bail them out. This continues to look like a pyramid scheme. The latest optimism comes today from a Chinese press report suggesting that the Chinese will cut the Reserve Requirement Ratio in the coming weeks, ahead of most analysts expectations. It […]
Monetary stimulus begun to fade — FIU
The reaction to the monetary “stimulus” provided by the FOMC and the BoJ over the past week has begun to fade and will continue to do so. And whilst some continue to say that the ECB has provided additional stimulus, I will point out that they haven’t bought a single bond of any country under […]