Month: August 2020

US July Personal Income Ticks Up, PCE Growth Slows

Personal income ticked up in July after two declines, reflecting a further increase in wages and salaries and small gains in proprietors’ income and rental income. At the same time, consumer spending increased in each of the last three months, though at a progressively slower rate. Consumption is running well above the second quarter average, […]

BoE’s Bailey: Bank Underestimated its Fire Power

The Bank of England (BoE) underestimated the tools at its disposal in the event of a Covid-sized crisis and sees an ample supply of financial assets should the economy require further quantitative easing. “It looks from today’s vantage point that we were too cautious about our remaining firepower pre-Covid,” said BoE Governor Andrew Bailey, addressing […]

Powell: Fed will be Flexible with Average Inflation Targeting

Federal Reserve Chair Jerome Powell said Thursday the Fed will be “flexible” in pursuing a new “average inflation targeting” regime and not use any set “mathematical formula”. Powell, elaborating on what he called a “robust” new monetary policy strategy framework adopted earlier by the Fed’s policymaking Federal Open Market Committee, also noted the new policy […]

Analysis: Fed Can Now Focus on Jobs

The pandemic’s destruction of US employment was not the trigger for the new Federal Reserve policy framework, in the works long before the virus hit. However, the jobs crisis is a perfectly appropriate context for the focus on employment. That focus had already become the hallmark of the Jay Powell era – and now it […]

ECB Chief Economist Hints at Further Eurozone Stimulus

The European Central Bank (ECB) may be forced to enact further extraordinary measures to lift inflation toward its target following the shock of the coronavirus, according to the ECB’s chief economist, Philip Lane, Thursday. “For the ECB to deliver on its mandate [the Bank may resort] to additional monetary stimulus,” Lane told the Kansas City […]

BNP Paribas Names New Head of Structuring Americas

BNP Paribas today announces the appointment of Sarah Wang as head of structuring Americas, which involves oversight of structuring teams across business lines. Previously, Wang worked at Barclays for 16 years, most recently as head of securitised product solutions structuring in the US. Prior to that, she was head of structuring in APAC and held various structuring […]

Virtu Releases FX Global Cost Review for Q2

Forward point volatility persisted into Q2 as a result of the pandemic, keeping market spreads high Every quarter, Virtu Analytics collates the performance of trades within Virtu Financial’s FX peer universe to provide colour around realised spread costs against market quotes. Spreads are expressed in basis point deviations from the market quoted mid-price (half-spread). Forward […]

IASB Issues Amendments to IFRS Standards

The International Accounting Standards Board (IASB) has finalised its response to the ongoing reform of interbank offered rates (IBOR) and other interest rate benchmarks by issuing a package of amendments to IFRS Standards. The amendments are aimed at helping companies to provide investors with useful information about the effects of the reform on those companies’ […]

COVID Exposes Compliance Issues, Drive Spending on Surveillance Tech

Spending on trade surveillance technology has been increasing at an impressive rate and could exceed previous growth expectations as firms address weaknesses in compliance infrastructure exposed during the COVID-19 pandemic, according to a survey by Greenwich Associates. Over the last decade, the trade surveillance technology market grew at a rate of 13% to 14% per […]