Category Archives: Nomura
The 10 “Grey Swans” Events For 2018
One of the traditional push backs against attempts to predict “black swan” events is that they are by default unpredictable, rendering the entire exercise moot. However, for the second year in a row, Nomura’s Bilal Hafeez has found a loophole, or rather loop-animal: the grey swan. As Hafeez writes, while he would like to be […]
After $150 Billion Buying Binge, ‘Tokyo Whale’ Seen Paring Back ETF Purchases In 2018
A few months ago, we noted that the Bank of Japan had decided to throw every textbook out of the window and crank their plunge-protection to ’11’after reports surfaced that they owned a staggering 75% of Japan’s ETFs. The BOJ first started their buying spree in December 2010 – when they held no ETFs at […]
China Slashes Import Tariffs on Consumer Goods In Boost For Trump And Western Exporters
China announced it is slashing import tariffs on 187 consumer products starting next month. The Finance Ministry pointed to the cuts being concentrated in products in short supply domestically which, it believes, will prompt local producers to improve quality. The items in the list which, includes baby formula, diapers, electric toothbrushes, medicines, cosmetics, coffee machines […]
The Five Biggest Tests For China’s Next Central Bank Governor
Zhou Xiaochuan’s long reign as PBoC Governor is drawing to a close. He signaled his impending retirement last month and will be seventy years old In January 2018. Zhou has headed up China’s central bank from the early days of China’s “growth miracle” in 2002 and successfully – thanks to massive credit creation – steered […]
China Deleveraging Hits Corporate Bonds As Cascade Effect Begins
Following the market lockdown during October’s Party Congress, many commentators were disturbed by the continued rise in Chinese government bond yields as we returned to “business as usual”, with the 10-year rising to 4%. At the beginning of this month, we discussed the sell-off (see “China: Shadow Bank Inflows Are Critical To Sustain The Ponzi…But […]
Bank Of Japan Leaves Policy Unchanged As Expected – Admits Defeat On Deflation
Japan's long and sordid dance with unconventional monetary policy continues. With most analysts expecting a 'nothingburger' from Kuroda (though some hinting at the potential for shock-and-awe), The BOJ delivered… nothing – no change. However, most critically, the BOJ admitted defeat of deflation and delayed the timing of reaching their 2% inflation goal to around FY2019. […]
Nomura Demands $134,000 For Premium Research
Just this morning we reported that as the global equity research market wrestles with how it will comply with the EU’s MiFID II regulations, in a new study McKinsey said that banks will have no choice but to fire a ton of equity research analysts who write a bunch of stuff that no one ever […]
Venezuela’s “Mysterious” Bond Deal Reappears, And This Time China Wants Out
As its foreign reserves dwindle to less than $10 billion, the government of Venezuela – desperate for any kind of financial lifeline – has partnered with a Chinese brokerage to try and resell $5 billion in bonds that it initially issued at a deep discount, according to the Wall Street Journal. The brokerage, Haitong Securities […]