Tag Archives | central banks

“I’m Sorry, America” says Fed’s official responsible for QE operations

Over the years, the blog has been very critical of the quality of people appointed by the US Federal Reserve to undertake the actual trading involved in its ‘Quantitative Easing’ (QE) programmes: In October 2008, it felt “distinctly underwhelmed” by news that the person supervising decisions on which financial institutions should live or die during the peak of the Crisis […]

Continue Reading

Benzene highlights rising risks in financial markets

The blog is busy preparing its presentations for its World Aromatics and Derivatives Conference later this month, co-organised as always with ICIS.  As well as looking at the impact of the transition to the New Normal, it will be investigating the current state of benzene markets.  These are always an excellent leading indicator for the global […]

Continue Reading

Benzene challenges financial markets’ rosy view of the outlook

This is Budget week, when the blog prepares to present its Budget Outlook for 2014-16.  On Saturday, it reviewed its 2012 forecast.  And starting tomorrow, it will analyse auto markets – as these are the largest single driver of demand - before issuing its 2014 Outlook next Saturday. The chart above presents the dilemma facing companies, […]

Continue Reading

Most major financial markets have doubled since 2009 lows

The period since March 2009 has been a wonderful time for most investors in the major markets.  As the blog’s 6-monthly update shows, almost every index has increased, and by large amounts: Russia has been the biggest winner, up 151%, due to its oil and gas export position The US is up 147%, as the […]

Continue Reading
D

Pimco warns on “negative impacts” of central bank policiy

A new report from Pimco, the world’s largest bond fund manager, makes it clear they share the blog’s worries about the increasingly negative impact of western central bank policy: “Central banks have reached a critical inflection point in which the negatives of their aggressive policies may be outweighing the positives and in fact hampering growth. […]

Continue Reading
D

“Its going to be scary”

As the Financial Times wrote on Saturday: “Earlier this year, it all seemed so straightforward. Central banks printed money and proffered soothing words, and markets went up. Now, it’s getting more complicated.” In fact, nervous readers might want to stay away from financial markets for a while. Just 2 weeks ago, crude oil prices suddenly […]

Continue Reading
WTI Apr13.png

“Surplus oil is filling inventories worldwide” – Reuters

Have you ever wondered, as you pay your energy bill or fill the fuel tank in your vehicle, just why oil prices have risen so much on the past decade? The question occurred to the blog when reading a Reuters report of the latest Outlook from the International Energy Agency (IEA). It notes the IEA […]

Continue Reading
Core slide.png

Volcker speaks out on central bank policies

Central bankers clearly read too many super-hero comics when they were young. Ben Bernanke at the US Federal Reserve, Mario Draghi at the European Central Bank, Mervyn King at the Bank of England and now Haruhiko Kuroda at the Bank of Japan, all see themselves as Superman solving the world financial crisis. The only problem […]

Continue Reading
Index Apr13.png

Companies warn on Q2 earnings outlook

Traders in Western financial markets are confident of 3 key facts about the economic outlook: • The US is already recovering, with auto and housing markets returning to pre-2008 levels • The Eurozone crisis is almost resolved and recovery is expected by H2 • China’s new leadership will ensure its growth surprises on the upside […]

Continue Reading
WTIvS&P Nov12.png

Oil markets have lost their price discovery role

The US spent $6bn on its presidential and congressional elections this year. Apart from expressing the will of the people, it may also prove valuable if it helps to highlight the danger of allowing wishful thinking to override factual evidence on the ground. One example of this failing was last Monday’s forecast by the highly-respected […]

Continue Reading