It would have been a nice, quiet day today with the market absorbing some pretty lousy economic numbers and waiting for tomorrow's job numbers when out of nowhere our relocated Canadian Central Banker announced that after 9 years he was reducing the Bank of England's discount rate by a 1/4% AND, coming to a theater near you in October, would begin buying 60 billion pound in Guilts and 10 billion in corporate debt of all things. There comes a time in everyman's life when he thinks/dreams/wishes he was Italian, but Carney=Draghi? Do get along.
The outcome was predictable. Sterling tanked to 1.3170 and the ten year Guilt showed 0.64% at its close. All sorts of noise about insuring the continuation of economic growth after BREXIT; the Bank of England stands firm; blah, blah blah. To be sure economic numbers since the referendum have not been good but I wonder whether that is because of BREXIT itself or the fact that everything stinks everywhere except for equities and the best performing group in that market has been Turkey. Go figure. One might also keep in mind that Our Markie was complete Doom and Gloom at the prospect of a "Leave" vote. Every once in a while I get the distinct impression the Mark doesn't like to be wrong...even when proven so...and reacts in a manner to justify his own beliefs no matter what that may be.
That may be harsh I admit but what we received today was another unfortunate example of the world's central bankers attempting to convince themselves that mankind's future rests solely in their hands. At this stage they might all be beginning to believe that they are immortal and you know, if our future depends solely upon them they damn well better be right. Some how I don't think so but unlike Mark, I've been wrong from time to time. We'll see I guess.
Tomorrow's jobs number had better be OK which, given the start of full time electioneering will probably be the case. Fortunately, it doesn't have to be really cooked...just cooked enough if necessary. But another howler like last month....look out below gang. A good piece of the sky may be coming down.
Showing posts with label Mark Carney. Show all posts
Showing posts with label Mark Carney. Show all posts
Thursday, August 4, 2016
Wednesday, September 30, 2015
CLOSING THE WEEK
Much the same thing today which is good because tomorrow I have what will hopefully be my final eye surgery it what has been a near-year long saga. As a result, I'm out of action until next week which works out fine if things stay in place until then. Actually it works out fine even if things don't so who am I kidding.
It was interesting, however to see today Chrissie of the Fund expressing considerable concern at the state of things, particularly the state of the Emerging Markets, and inparticular the state of corporate credit quality. Good call on her part because if this thing called the "global economy" doesn't start to perk up...well, you've heard me wax poetic on that before. Right now the U.S. seems to be the only economy that is perking along, albeit at a pretty slow pace, but how long can that continue with no global support? The Brits are doing OK as well but somehow I get the feeling that all is not well politically or socially with our brethren.
And speaking of them, Mark Carney the Canadian Governor of the Bank of England made quite a bit of press today with last night's speech on global climate change (or is it warming?). Seems the dangers away out there are a financial concern as well. Now Carney is a pretty smart guy but like so many others, he has reached a point in his career where he simply has to run his mouth in order to hear what kind of sound it makes. The concern as to the credit worthiness of energy companies should--as he put it--"governments become serious as to greater fossil fuel restrictions," seems to me a bit of a waste of Mr. Carney's considerable intellectual resources inasmuch as I have seen nothing, even in the most extreme climate change supporting documentation that suggests that more than 30% of TODAY'S energy needs could be supplied by renewable resources in 50 years. May I suggest, Mark, that governments are not about to turn the lights off on the future population of the world? That idea is what up in Canada could elicit a response of DUH, eh? I might, if I be thee, start worrying about the credit worthiness of a few institutions in our eon. At a million nicker a year is that too much to ask?
Next Monday if all goes well.
It was interesting, however to see today Chrissie of the Fund expressing considerable concern at the state of things, particularly the state of the Emerging Markets, and inparticular the state of corporate credit quality. Good call on her part because if this thing called the "global economy" doesn't start to perk up...well, you've heard me wax poetic on that before. Right now the U.S. seems to be the only economy that is perking along, albeit at a pretty slow pace, but how long can that continue with no global support? The Brits are doing OK as well but somehow I get the feeling that all is not well politically or socially with our brethren.
And speaking of them, Mark Carney the Canadian Governor of the Bank of England made quite a bit of press today with last night's speech on global climate change (or is it warming?). Seems the dangers away out there are a financial concern as well. Now Carney is a pretty smart guy but like so many others, he has reached a point in his career where he simply has to run his mouth in order to hear what kind of sound it makes. The concern as to the credit worthiness of energy companies should--as he put it--"governments become serious as to greater fossil fuel restrictions," seems to me a bit of a waste of Mr. Carney's considerable intellectual resources inasmuch as I have seen nothing, even in the most extreme climate change supporting documentation that suggests that more than 30% of TODAY'S energy needs could be supplied by renewable resources in 50 years. May I suggest, Mark, that governments are not about to turn the lights off on the future population of the world? That idea is what up in Canada could elicit a response of DUH, eh? I might, if I be thee, start worrying about the credit worthiness of a few institutions in our eon. At a million nicker a year is that too much to ask?
Next Monday if all goes well.
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