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Good morning 🌞- summer is here & it is a sauna in 🇭🇰. Over the weekend:
a) Labor lost & Conservative won in 🇦🇺 (good in my book)
b) Trade-war tension ratcheted up a notch w/ Google suspends some biz w/ Huawei.
This wk, we got Fed mins & Korea 1st 20-day of exports🤗
a) Labor lost & Conservative won in 🇦🇺 (good in my book)
b) Trade-war tension ratcheted up a notch w/ Google suspends some biz w/ Huawei.
This wk, we got Fed mins & Korea 1st 20-day of exports🤗
Let's follow the $$ (Lipper-FMI fund flow for wk ended 15 May):
Losers: Risk assets (high yield, loan, US stock & EM debt 🙁)
Winners: High quality & low risk assets (investment grade, money market 👌🏻💪🏻
Losers: Risk assets (high yield, loan, US stock & EM debt 🙁)
Winners: High quality & low risk assets (investment grade, money market 👌🏻💪🏻
Who is excited about China fix this morning?
🙋🏻♀️
The PBOC decides a fix & CNY is allowed to trade +-2% around this fix, usually based on a wide range of factors, including the USD (trade-weighted basket & they give u the weight). But, it blocks them so they add others for space
🙋🏻♀️
The PBOC decides a fix & CNY is allowed to trade +-2% around this fix, usually based on a wide range of factors, including the USD (trade-weighted basket & they give u the weight). But, it blocks them so they add others for space
When they revealed the weight in 2015 (2016?), if I remember correctly, I questioned why they gave the weight. B/c the MAS does the same, it has a NEER but it doesn't disclose weight for POLICY SPACE so can do wutever it wants.
Hence China needed to add counter cyclical factors
Hence China needed to add counter cyclical factors
I understand central banks b/c often try to think what is it like to be them as they sit on the other side of markets & have to deal w/ the ebbs & flows of capital & a lot of it is beyond their control (Fed decides the USD, ECB decides EUR, well, indirectly, & BOJ JPY). Not easy.
In terms of politics we got:
a) India exit polls - Modi once more until 2024 seems as indicate his coalition will rule once more (risk assets rallying of continuation of status quo);
b) European Parliamentary elections coming up (23-26 May)
a) India exit polls - Modi once more until 2024 seems as indicate his coalition will rule once more (risk assets rallying of continuation of status quo);
b) European Parliamentary elections coming up (23-26 May)
