European Central Bank President Mario Draghi has expressed concerns that the euro is growing too strongly and will make it difficult to achieve the bank's 2% inflation target, but columnist Mark Gilbert doubts Draghi's efforts to curb the euro's progress will be successful. Gilbert refers to a similar but unsuccessful move by predecessor Jean-Claude Trichet and contends that investors increasingly regard the euro as a safe haven amid political upheavals in the US and UK.
Some expect Federal Reserve Chair Janet Yellen to use her speech at the Jackson Hole, Wyo., economic symposium to announce further interest-rate increases, contrary to market expectations, and an October start to shrink the central bank's balance sheet.
Lloyd Blankfein, CEO of Goldman Sachs Group, appeared to take a swipe at President Donald Trump via Twitter amid the solar eclipse Monday. "Wish the moon wasn't the only thing casting a shadow across the country," Blankfein tweeted.
The charts for TJX, parent company of retailer T.J. Maxx, lead technical analyst Bruce Powers, CMT, to contend that it may be ready for a strong breakout. Powers forecasts that it could go on to hit a minimum target of $77.54.
Banks are interpreting guidance from regulators as a chance to treat variation-margin payment as settlement for cleared swaps. The legal substance is unambiguous, says Michael Voisin of Linklaters, but the guidance "is effectively confirming what people always thought: that the treatment works in accordance with US regulatory capital rules."
The UK will abandon its demand that EU courts cease to have any authority in the UK after Brexit, according to a position paper to be released today by Prime Minister Theresa May's government. The paper says that some foreign judgements against businesses and individuals will be enforced in the UK to ensure that cross-border laws are applied in a "fair and sensible way", a government source said.
Fitch Ratings upgraded the Greek government's credit rating to B- from CCC, citing progress on its economic growth and lower political risk. The announcement prompted the 10-year government bond yield to drop 5 basis points in early trading Monday.
Tracking benchmarks closely has become essential to investment performance. Third-party providers have answered the call with products that deliver pricing of over-the-counter securities, but investors increasingly want to understand the quality of this pricing data.
The European Central Bank's widely anticipated move toward tapering its bond-buying scheme looks likely to have a considerable effect on emerging economies, which hold record levels of euro debt, and could hamper those economies' recent rally. However, the effect is unlikely to equal the "taper tantrum" that wiped half a trillion dollars off the MSCI Emerging Markets Index when the Federal Reserve proposed a similar move in 2013.
Lord Nicholas Macpherson, former permanent secretary to the UK Treasury, issued an unusually forceful condemnation of quantitative easing and bond-buying schemes, likening their effect to that of heroin. He tweeted that they bring diminishing returns and increasingly negative side effects, and called for them to be ended.
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