Silver as an investment

Category Archives: BOE

Key Events In The Coming Holiday-Shortened Week

It’s a relatively quiet, holiday-shortened (in the US) week, in which volumes are expected to grind lower as we head into the Thanksgiving holiday. In the US, existing home sales will be reported on Tues, expected to edge up to 5.4mn saar in Oct from 5.39mn in Sep. One day later, we get the durable […]

Keep Calm & Carry On

Authored by 720Global's Michael Liebowitz via RealInvestmentAdvice.com, “Before long, we will all begin to find out the extent to which Brexit is a gentle stroll along a smooth path to a land of cake and consumption.” – Mark Carney, Bank of England Governor In 1939, the British Government, through the Ministry of Information, produced a […]

BOE Warns Weekly Fund Redemptions Of 1.3% Would Break Corporate Bond Market

The Bank of England has done some timely and truly eye-opening research into the resilience of corporate bond markets. The research is contained in the Bank of England Financial Stability Paper No.42 and is titled “Simulating stress across the financial system:  the resilience of corporate bond markets and the role of investment funds” by Yuliya […]

BoE Deputy Governor Gives Crazy Speech Warning Markets Have Underestimated Rate Rises

On 2 November 2017, the Bank of England raised rates for the first time in a decade and Sterling’s initial rise was promptly sold off by forex traders as we discussed. The 7-2 vote by the Monetary Policy Committee was not the unanimous decision some had expected, while Cunliffe and Ramsden saw insufficient evidence that […]

Global Stocks Tumble, Asia Plunges On Chinese Commodity Carnage

The euphoria of the past month has ended with a thud and BTFDers are strangely missing as the commodity chill out of China (which overnight became full blown carnage), has unleashed a global risk-off phase ahead of today’s critical CPI data, resulting in broad and sharp selling across global markets, as European stocks followed declines […]

Stockman Warns “Mind The Junk” – This Ain’t Your Grandfather’s Capitalism

Authored by David Stockman via Contra Corner blog, The financial system is loaded with anomalies, deformations and mispricings – outcomes which would never occur on an honest free market. For example, the junk bond yield at just 2% in Europe is now below that of the "risk-free" US treasury bond owing solely to the depredations of the ECB. Indeed, […]

Gold Price Reacts as Central Banks Start Major Change

Gold Price Reacts as Central Banks Start Major Change – Bank of England raised interest rates for the first time in ten years– President Trump announces Jerome Powell as his choice to lead the U.S. Federal Reserve– Most investors outside the US Dollar and Euro see gold prices climb after busy week of central bank news– […]

US Futures Rebound After Disappointing Chinese, European Data

Yesterday’s sharp Chinese selloff is now a distant memory after the BTFDers emerged, and this morning U.S. equity futures are once again levitating as the FOMC begins its two-day policy meeting, following an uneventful BOJ announcement on Tuesday morning which left all QE parameters unchanged. Asian stocks traded mixed steady while European shares climb. The […]

BoE Expected To Vote 6-3 For Rate Increase And Signal Markets Underpricing Future Hikes

The last time the Bank of England raised rates was July 2007, when rates increased to 5.75%. Credit markets began to dislocate a month later (when LIBOR diverged from Fed Funds), equity markets peaked three months after the increase and things eventually got much worse. So, the track record is not auspicious, but the alleged […]

UK Retail Employment Plunges Most Since 2008 As Retail Sales Crash

Yesterday we noted the surge in cable following the stronger-than-expected Q3 GDP print of 0.4% Q/Q, above the 0.3% estimate. Afterwards, the market was calculating an 87% chance that the BoE would hike next week. Brown Brothers commented that: The case against a hike is that inflation appears poised to peak shortly, the economy is […]