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good morning to +150 economists who signed our @FT letter calling for IMF-coordinated capital controls to give developing countries policy autonomy for the #coronavirus response
@adam_tooze @Jayati1609 @anninak82 @JoMicheII @BBonizzi @Powell_J_R

ft.com/content/350538…
Nationalisation of bond markets is a good metaphor for what central-banks in high income countries have done against #coronavirus

Few in the Global South have this luxury.
ft.com/content/3e9abe…
if you wonder is this really necessary, look at the red line, and remember Argentina went through a version of this with Macri, and only stabilised with capital controls.
and yes, not all economists. lots of other, far cleverer people!
and the ungated version with the full list of signatories.

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Daniela Gabor
@DanielaGabor
short explainer of daily swap lines with @ecb example:

European banks need dollar financing for their dollar assets (loans, bonds, derivative positions etc) or for their clients.

Usually, in non crisis times, they get dollars from USD repo markets or from fx swap markets.
in crisis times, willingness to provide dollar funding shrinks in private markets.

some European banks can borrow directly from US Federal Reserve, but mostly will go to ECB.

The Fed then agrees with the ECB to open up a swap line. for both, it's matter of financial stability
The first leg of the swap: the ECB creates a Euro account for the Fed, the Fed a dollar account for the ECB, at an agreed exchange rate (more accurately, accounts exist and get credited). They 'lend' to each other.

Second leg at future point in time, this transaction unwinds.
Read 19 tweets
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Daniela Gabor
@DanielaGabor
waking up to the excellent news that @ecb will preserve the safety - and fiscal room for fighting Covid - of the Euro government debt.
Without conditionality, and without passing the ball to ESM.
Covid has now pushed Euro towards the sensible macro-financial architecture that we would have had without the crazy politics of 'risk sharing'.
As I wrote two years ago, Euro needs
no Eurobonds without safe national sovereign bonds to avoid contagion/liquidity effects
Read 6 tweets
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Daniela Gabor
@DanielaGabor
Brutal EM outflows. If Fed doesn't exte d swap lines soon we are looking at either
1. Capital controls on everything that moves.
2. Every EM with a twin currency/banking crisis, plus brutal domestic demand contraction.
Reluctance and legal constraints should be off the table, if Fed wants to preserve the USD as international currency.
Otherwise, hello RMB hegemony.
Translation for non finance geek humans. Emerging and developing countries in serious trouble
Read 8 tweets

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Brandi Wash Your Damn Hands Buchman
@BBuchman_CNS
Good morning.

The House Oversight Committee wants answers and they want them now on why broad testing for #coronavirus has yet to take place. Lawmakers will also scrutinize how tests are paid for, the role of insurers and more.
Hearing begins today at 930AM ET.
The witnesses:
On March 3, the Cmte sent a letter to CDC director Robert Redfield requesting the following breakdown on coronavirus cases. ⬇️
The letter in full available here: documentcloud.org/documents/6807…
There have been lingering questions over how CDC has reported its data and for a time, the agency yanked coronavirus test rate reports off of its website altogether. Yesterday, dir. Redfield vowed that CDC would restore reporting online.
Background:
courthousenews.com/house-grills-c…
Read 97 tweets
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Brandi Testing & Transparency Buchman
@BBuchman_CNS
Good morning. At 830AM ET, Secy of State Mike Pompeo comes before the House Foreign Affairs Cmte to face Qs on the Trump admin's Iran posture for the first time since the targeted killing of Qasem Soleimani.
Pompeo's opening remarks here:
documentcloud.org/documents/6789…
@CourthouseNews
@CourthouseNews Livestream link available here: foreignaffairs.house.gov/hearings?ID=BD…

If you can't watch the live-stream today, I'll have the story coming up for @CourthouseNews
@CourthouseNews Pompeo starts out today's hearing by expressing frustration that he has to field questions about coronavirus when @davidcicilline asks what his role, as Secy is, in global response to virus.
"We agreed I’d come here to talk about Iran & the 1st question today is not about Iran."
Read 20 tweets
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Tyler Young
@tylerisyoung
CORONAVIRUS (COVID-19)
This is a roundup of what I found to be the most interesting & helpful sources on my journey into the void. #Coronavirus #Pandemic #Misinformation #CDC #CPP #WHO
This is for friends & family, but also to raise concern over media censorship & begin a discussion of what are best practices for both traditional & decentralized media outlets. This is a collection of sources to tell a larger story and spark interest.
Very few sources peer reviewed. Some behind paywalls. Some mainstream news. Some International News. Some in other languages (Use chrome). Some Harvard medical Journals. Some unverified. Some factually incorrect. Have some salt with your rice & beans.
Read 132 tweets
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Trinh Nguyen
@Trinhnomics
Good morning! Another beautiful & sunny day in Hong Kong - crispy & cool air! Can't say the same about macro & micro data in Asia. Yesterday we got bad data out of Japan & Thailand & downgrades by Singapore & Thailand (don't worry, more to come).

Cathay & Apple warn of earnings!
Nikkei 225 is having another meh day w/ markets open almost down 1% & Asian FX feeling blues vs USD. DXY even now higher at 99.2 with EUR at 1.08 & GBP 1.2996 & the USD continues to surge on fear of impact of #coronavirus

Not a rounding error 🦠😬🌄🌞🇭🇰

You know I have been going on & on about the real estate sector & something that markets don't look at enough. Why? Well, b/c for every small & medium enterprise not getting sales, there's a landlord. So? Either rent/sale price falls to help reduce costs or SMEs out of business.
Read 6 tweets
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Trinh Nguyen
@Trinhnomics
Good morning. Divergence b/n US & Asia is happening again w/ US ISM manufacturing bouncing in Jan to 50.9 from 47.8 while Asian data remains weak (Vietnam, Malaysia, Indonesia, Korea, Thailand, & China slower). New orders rose to 52! After an abysmal Monday China iron ore⏬today.
As mentioned yesterday, we only had that magnitude of single-day drops 5 times since 2001 & in 2007 markets rebounded the next day but NOT 2015. The drop of iron ore forebodes 2015 for today & not 2007, meaning, likely get to buy it cheaper if u think markets over-reacting🤗!
Link on US ISM manu if u want to read from the source (should always read primary data if u have access to interpret data urself). Asian data below. B/c of this, USD rising to 97.8 (note this is just w/ major floaters & mostly EUR & doesn't include CNY)

instituteforsupplymanagement.org/ISMReport/MfgR…
Read 21 tweets
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ZyroFoxtrot🇺🇸⭐️🇺🇸⭐️🇺🇸⭐️🇺🇸
@ZyroFoxtrot
A State Of Panic Hits The Globe As Cases Of China’s New Mystery Virus Rise Exponentially

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Can a virus be patented?

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JAPANESE SHOPKEEPER HANGS SIGN IN RESPONSE TO CORONAVIRUS PANIC: “NO CHINESE ALLOWED”

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