at least a good portion of the population is studying up on how much personal info they have given out to
the Tech Giants...... Occasionally there are push backs.
Message 31675816
(you have to take a quick look at that post to know what the intro discussion is about...... it a
fascinating read...... within 3 days we will know if the most restrictive personal internet privacy law
proposal will be on the ballot in CA. in Nov...... imagine if the tech companies don't have the legal right
to use positioning abilities to know where we are......)
DJT admin... are following the markets hour by hour and announced a modification to the CFICS trade
dispute with China shortly before 6 AM this morning...
he killed the executive order....Trump Decides to Use Updated Law to Restrict Chinese Investment, Drops Executive Action Option President also asks Commerce Department to examine export control
The team of officials briefing reporters repeatedly stressed that the administration had decided to work with Congress on updating the 1980s law known as the Committee on Foreign Investment in the U.S., or CFIUS, which gives the executive branch the power to review foreign investments seen as a national security risk.
They repeated that the bill, which has passed both houses of Congress, has strong bipartisan support.
Bloomberg has had a series of interesting interview..... there is over $12 Trillion dollars of loans worldwide
that are denominated in USDollars ..... must be paid back in USD...... and thus a USD that is too rich / high
puts pressure on all the borrowers... as they are paying back the loans in debased local currencies.
and of course, US rates have been climbing higher...
The BOE is sounds a warning bell......
and the cross currents on the US yield curve... if the US economy is strong why can not the 10 year rate
maintain a 3.0% yield.
2 -10 year spread is even narrower today
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BOE Warns of Growing Risks in Global Debt Markets
Bank of England sees threats to financial stability coming from unease over Italian debts and worries about borrowing in China
By Jason Douglas WSJ
Updated June 27, 2018 8:44 a.m. ET
LONDON—The Bank of England sounded an alarm Wednesday over global debt markets, saying it sees pockets of risk to the stability of the financial system in places ranging from U.S. corporate borrowing to risky loans in Britain to foreign-currency lending to emerging markets.
The BOE’s warning comes as the global economy faces multiple challenges, as major central banks led by the U.S. Federal Reserve step back from the easy-money policies of the past decade and as trade tensions escalate.
“The recent tightening in global financial conditions could be a precursor to a much more substantial snapback in world interest rates and more challenging bank, corporate and sovereign funding conditions,” BOE Governor Mark Carney said at a press conference, adding that growing protectionism “could sap some of the current strength of the global economy.”
The U.K. central bank said in its twice-yearly financial stability report that the risks to financial stability world-wide have increased in the past six months. Officials cited a range of threats, including renewed unease over Italy’s ability to pay its debts and perennial worries about borrowing in China.
They also voiced particular concern about the U.S., where corporate borrowing has ballooned to 290% of first-quarter earnings, according to BOE calculations. Rising indebtedness has been accompanied by looser lending standards, leading to a surge in high-risk lending, the central bank said, a large share of which is being parceled into securitized assets sold to investors world-wide.
(yes that does sound like 2005-2007)
Borrowers may struggle to repay their loans if interest rates continue to rise or global growth falters, the BOE said.
Officials voiced similar worries about emerging markets, where governments and the private sector have loaded up on dollar-denominated debt and now face a squeeze from both a rising greenback and higher U.S. interest rates. British banks’ exposure to major emerging markets excluding China amounts to around 15% of their total assets, the BOE said.
“Where borrowers have taken advantage of market conditions to raise their debt levels, an adjustment in market prices could expose a debt overhang, giving rise to risks to financial stability,” the BOE said in the report.
Its warning highlights renewed unease in policy circles over the risks of heavy indebtedness, which critics of central banks say they have helped fuel by pinning interest rates to the floor for years in an effort to revive sluggish economies. Still, central banks, including the BOE, take comfort from postcrisis reforms designed to ensure the banking system can better withstand unexpected economic and financial shocks.
The BOE reiterated that its stress tests suggest British banks are strong enough to withstand a disorderly U.K. exit from the European Union.
But Mr. Carney stepped up warnings that more work needs to be done—especially by EU authorities—on issues such as the legal framework for derivatives to prevent disruption to the provision of financial services in the event of an abrupt break.The U.K. is scheduled to leave the EU in March 2019.
The EU has not yet indicated their solution to these fundamental issues which would be expected to have more material impacts on the costs and availability of finance on the continent in the unlikely event of a disorderly Brexit,” Mr. Carney said.
Negotiations between London and Brussels over the terms of Britain’s EU exit are ongoing. The U.K. is due to leave the EU in March next year but a host of critical issues remain unresolved, including future customs arrangements, product regulations and cross-border financial services.
They also voiced particular concern about the U.S., where corporate borrowing has ballooned to 290% of first-quarter earnings, according to BOE calculations. Rising indebtedness has been accompanied by looser lending standards, leading to a surge in high-risk lending, the central bank said, a large share of which is being parceled into securitized assets sold to investors world-wide.
Borrowers may struggle to repay their loans if interest rates continue to rise or global growth falters, the BOE said.
Officials voiced similar worries about emerging markets, where governments and the private sector have loaded up on dollar-denominated debt and now face a squeeze from both a rising greenback and higher U.S. interest rates. British banks’ exposure to major emerging markets excluding China amounts to around 15% of their total assets, the BOE said.
“Where borrowers have taken advantage of market conditions to raise their debt levels, an adjustment in market prices could expose a debt overhang, giving rise to risks to financial stability,” the BOE said in the report.
Its warning highlights renewed unease in policy circles over the risks of heavy indebtedness, which critics of central banks say they have helped fuel by pinning interest rates to the floor for years in an effort to revive sluggish economies. Still, central banks, including the BOE, take comfort from postcrisis reforms designed to ensure the banking system can better withstand unexpected economic and financial shocks.
The BOE reiterated that its stress tests suggest British banks are strong enough to withstand a disorderly U.K. exit from the European Union.
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Europe is making it extremely difficult for Britain to leave the EU and the Global banking capital of London,
has been witnessing a disapora of "the City's" investment banking jobs head to various way stations in Europe.
none with the infrastructure, history, continuity.... and the English Language as the principle language...
Angela Merkel, who has been in power for almost as long as FDR has the next few days to ameliorate
the immigration morass in Germany.... or she will be leaving.... the photo of her standing up and leaning on
the desk starring at DJT was released by her German team.... It was fascinating to see how completely different
the seven official tweet photos were of from the 7 members of the G7 meeting the weekend before the NK
summit.
The markets are not prepared for her to loss her position... and the Italian Government is wants the migrants out
and is not very interested in paying back there debt..... Italy is a leading candidate to bail from the EUR...
There is a fair amount of talk that we have a global rolling bear market and those are the best in the sense
that the excesses are corrected in waves and there is not an overall whack....
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oh and Bitcoin and the Cryptocurrencies..... obviously getting hammered.......
Look at BITCOIN basis the CME nearby futures continuation chart..... it is on the mat at the
bottom of it's bearish descending triangle..... 90% of the times this pattern breaks down.... and
u we should / could see some real capitulation selling..... it has gotten very quite as it
precariously attempts to hold 6000
JP |
