Most of the media has reminded us that on August 9, 2007, BNP Paribas announced it was having problems calculating a reliable net asset value for three mutual funds. So the bank suspended redemptions. The most commonly held view is that this was the beginning – not the origin – of the crisis.
The minutes released by the FED and the ECB last week shared concern about how to inform about their monetary stance. They fear unsettling the markets should investors wrongly interpret the messages conveyed to them. When you lack a clear policy perspective, the best thing you can do is to manage communication in a fairly tight way.
As Trump played his part in the reshuffle of Saudi Arabia for the succession of Mohammed bin Salman, he could likely play a salient role in the apparent coup in the UAE — this time for the succession of Abu Dhabi’s crown prince Mohammed bin Zayed. The plot could help Trump to have complete control over the Gulf in a way that he wishes for US interests.
Yukon Huang via Caixin |China’s outward direct investment, a relatively recent phenomenon, has drawn considerable attention because of its size and geo-strategic importance. Although early on Beijing encouraged an outward strategy, the sharp decline in China’s foreign reserves beginning in 2015 led the financial authorities to believe these investments had gotten out of hand.
The minutes of the Fed’s late July meeting released yesterday reflect ongoing concern about muted inflation data, as well as the fact there seems to be some discrepancy amongst FOMC members over when would be the right time to begin the normalisation of the central bank’s balance sheet.
Larry Beck via Fair Observer | The Democratic Party must seize the moment now and deliver a message of change, but change driven by a renewed collective conscience with social justice at its core.
China’s economy got off to a slow start in the third quarter, with key indicators gauging factory activity and mining, investment and general consumption falling in July to their lowest levels in months, official figures showed Monday.
The summer lull may continue to dampen stock market activity during the month of August, but there are two key events on the investor agenda this week. German GDP figures for Q2 and the minutes of the Fed’s late July meeting.
The biggest financial risk this August – a month particularly prone to financial crises, like the last one which began in August 2007 – is geostrategic: the ongoing misunderstanding between Trump and North Korean leader Pyongyang.