German Economic Sentiment Sharply Lower

Economic sentiment in Germany fell in October to its lowest level since July as increasing cases of Covid-19 in Europe, along with Brexit uncertainty, have raised concerns about the economy. The ZEW Indicator of Economic Sentiment Tuesday fell 21.3 points in October to 56.1, and while economists were expecting a decline, the result was far […]
Read More »

BoE’s Bailey: Negative Rates ‘Not Near’

The UK’s top rate setter Monday reiterated his mixed messages over the implementation of negative rates, warning that the Bank of England (BoE) has no imminent plans to push borrowing rates below zero. “We are not near and haven’t addressed whether we should use them,” said BoE Governor Andrew Bailey in a virtual Citizens’ Panel […]
Read More »

And Finally…

As well as the obvious areas around liquidity and spreads, the pandemic appears, if the anecdotal evidence of many of my recent conversations is anything to go by, to have reignited discussion around what constitutes best execution? I’ll be honest and say that I thought this subject was as settled as is it ever going […]
Read More »

Take a Deep Breath, Because Here Comes the Pain

Nothing in life is free. That also applies to the data schedule. After a week that was extremely short on major data, the upcoming week’s schedule is overflowing with it, with the mid-month price, production and sales data crammed into a holiday-shortened four-day week. Hurricane Delta is hitting the already-damaged Gulf Coast as we speak. […]
Read More »

BoC’s Macklem: Resumption of Payments ‘Going Well’

So far, so good is the message from Bank of Canada (BoC) Governor Tiff Macklem Thursday as Canadian borrowers resume loan payments deferred during the pandemic. Still, the BOC will watch closely to see how well households and businesses cope with expiring loan deferrals and will also monitor whether excessive debt is building up in […]
Read More »

ECB’s Mersch: Sustained EU Fiscal Stimulus Requires Treaty Change

A top European central banker praised the eurozone’s fiscal response to the Covid-induced economic downturn, but warned that further stimulus would most likely require a legal change to the roles of European institutions. Far from establishing a precedent for further fiscal integration, the European Commission’s €750 million fiscal package “does not mean that outside of […]
Read More »

US Initial Claims Slip Further, But Not Very Quickly

Initial claims fell by 9,000 in the October 3 week to a level of 840,000, above expectations for a level of 819,000, the Labor Department reported Thursday. While any decline is welcomed, the tight range in which initial claims remain suggests that little progress is being made in getting people back to work. The four-week […]
Read More »

ECB’s Schnabel Raises Alarm on EU Banking Sector

A top European Central Bank (ECB) official lamented the health of the European banking sector, calling for greater integration and risk sharing across the eurozone. The return on equity for eurozone banks fell to 0.01% at the end of the second quarter from 6% a year earlier, according to Isabel Schnabel, a member of the […]
Read More »

OPEC Sees Partial Oil Demand Recover in 2021

OPEC Thursday predicted a partial rebound in oil demand next year, although the coronavirus outbreak remains a major X-factor, while it also expects increasing market share for its members as oil supply from other sources “stagnate or decline”. The group’s 2020 World Oil Outlook contains the bloc’s medium- as well as long-term oil demand and […]
Read More »

And Another Thing…

The size of the fines being dished out by the US authorities are not particularly large – especially for those banks that have been targeted – but the number of sanctions is. As the CFTC noted in a release this very week, it closed its fiscal year with a record number of enforcement actions, and […]
Read More »