J.L. M. Campuzano (Spanish Banking Association) | The global central banks are putting their plans for monetary normalisation on the table. But they also recognise that inflation risks are contained in the short-term. That means they have a margin of time to proceed with monetary normalisation in a cautious and patient way.
The recession has produced one clear victim and it’s called salaries. Starting with those lost by the jobless and by those who have used up all their unemployment benefit. But those workers on lower salaries, have also suffered, seeing their purchasing power diminished.
Benjamin Cole | While taxes and trade get the headlines, a major issue in the US is ubiquitous restrictive property zoning, and the false signals zoning sends to the Fed. Indeed, the “housing bubble” that led to Fed over-tightening in 2007 barely surfaced in Houston, but was highly prominent in San Francisco. Obviously, the “housing bubble” was not Fed-induced.
Nobody really knows why volatility has disappeared. In theory, there are more than enough reasons for the market to be nervous, and for investors to take advantage of this to obtain higher returns.
Markets are currently looking to the US Federal Reserve’s (Fed) September policy meeting, scheduled for tomorrow and Wednesday. Given the Fed’s statement at its June 2017 policy meeting, the balance sheet reduction should begin gradually at USD 10 billion per month.
The City’s conclusion is that, in relation to their size, the US private equity firms could dedicate more time and deploy more capital in Europe, to the benefit of everyone. But these firms still have doubts about the future of the Eurozone after Brexit. Other non-US and non-European actors are grabbing those opportunities reticent US investors are letting pass by.
Fran Wang via Caixin | China’s drive to boost the housing rental market is spurring the revival of plans to let companies offer real estate investment trusts (REITs) to the public.
J.L.M. Campuzano (Spanish Banking Association) | The increase in the size of the central banks’ balance sheet has without doubt been one of the untraditional measures of the financial crisis. But the president of the ECB has anticipated that probably at its next meeting in October a scheme will be worked out to progressively reduce the asset buying programme.
Benjamin Cole | With the announced mid-October resignation of U.S. Federal Reserve Vice Chairman Stanley Fischer, Donald Trump has a chance to do what Presidents Obama and Bush never did: appoint growth-oriented members to control nation’s central bank.
The 2017 hurricane season will cost a bundle but, according to Carax Alphavalue “when looking at a 5-year chart of the European Reinsurers’ performance, it is clear that the profit-taking temptation was a strong one.” Even after losing 12% since their recent (pre-storms) peak, the sector has outperformed the Stoxx600 by about a third.