Daily Comment
Daily Comment (September 26, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] It was a quiet weekend. The only major news of note was that Jeremy Corbyn was elected as the leader of the Labour Party by nearly 62% of party members.[1] Most political pundits are predicting the Labour Party is doomed to the political wilderness until it… Read More »
Daily Comment (September 23, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] This morning’s big news comes from OPEC, where Reuters is reporting that Saudi Arabia offered a production cut if Iran would freeze production. We do not know how much the kingdom has offered to reduce its output, but Iran did tell Russian media that it would… Read More »
Daily Comment (September 22, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] As expected, the Fed did not raise rates yesterday. Risk markets rallied following the release and are higher again this morning as investors focus on the more dovish aspects of the release. A key sentence was added to the FOMC statement, which read, “The Committee judges that… Read More »
Daily Comment (September 21, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] Equity markets are generally higher following the BOJ release. The BOJ did not do anything too radical—no helicopter money or foreign bond purchases. But, there were some changes. The focus of policy will shift to the yield curve as the 10-year JGB will be pegged at… Read More »
Daily Comment (September 20, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] Given the large amount of news from the weekend, there were a couple of items that we wanted to mention but, for brevity, waited until today. First, the Bank of International Settlements released its table of early warning indicators for banking system stress. The key data… Read More »
Daily Comment (September 19, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] It was a very busy weekend for news. Let’s take a look: Terrorist attacks: There were a couple of bomb explosions over the weekend along with a number of unexploded devices found in the Greater New York area. The story is evolving but security officials have… Read More »
Daily Comment (September 16, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] There isn’t a ton of news in the financial markets this morning. The most discussed is the DOJ decision to levy a $14 bn fine against Deutsche Bank AG (DB, $14.76). In European trading, shares were off over 8% overnight. The bank was anticipating a fine… Read More »
Daily Comment (September 15, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] The big overnight news was the BOE’s decision to hold rates and bond-buying steady, which was expected. The committee vote was 9-0 in favor of the current policy. The bank did indicate, however, that it was still on course to lower rates later this year and… Read More »
Daily Comment (September 14, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] In the next AAW (published Friday), we will discuss the very important impact of foreign issues on U.S. Treasury yields. This is one reason why the financial markets have become focused on the BOJ’s review of its monetary policy. There are rumors swirling as to what… Read More »