Global growth had stabilized and in some cases was even perking up when nCoV arrived. EM had quickly become crowded as a global reflation and value trade. These positions are now under intense pressure. The US is still holding in, but for how much longer?
BY ERIC FILL
This week we look at the recent Fed meeting and how the nCoV fears are infecting the markets. SAM Weekly Feb 03 2020
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December 2: The Week Ahead
BY TEMATICA
Market euphoria, Black Friday-Cyber Monday findings, what we're watching this week
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Thoughts From The Divide: High Times and Happy Endings
BY JON WEBB
“I think it was the right decision, and I think it should send a signal that we, that we’re committed to coming up with a good outcome here”
There is no verse in scripture that says “blessed be the dovish, for they shall fatten the sacred bull”. More’s the pity, because it would have been apt. James Macintosh seems to have noticed the same, but framed it slightly differently. Nothing says I love you to asset markets more than Fed rate cuts: the original PCA factor. And to be fair, the admiration appears to be mutual: Powell loves markets and markets love Powell. It’s nice to get positive feedback and it’s not like JP had to drag everyone screaming and kicking.
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Thoughts From the Divide – Lessons Learned
BY JON WEBB
If the saying is that we’re always fighting the last war, Chair Powell and his Fed comrades appear to be shellshocked. Not so long ago, when asked about where the FOMC’s collective thinking was, Mr Powell went with the rather cumbersome formulation “not thinking about thinking about” rate hikes. This time around, when asked about the various ins and outs of potential rate cuts, Powell said point blank that “the next question… is when it will become appropriate to begin dialing back the amount of policy restraint that’s in place… that’s really the next question, and that’s what people are thinking about and talking about”.
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