Institutional Balm for Markets, But Demand Destruction Deepens

White House Watch looks at declaration of national emergency accompanied by new testing regime. From the White House to Ottawa and Germany and beyond, governments Friday applied massive reinforcement of economies and health care mechanisms while the relentless spread of the coronavirus and its erosion of demand continued, its destructive force still unbounded. US stock […]
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In the FICC of It

The podcast lives up to its name this week with an in-depth look at conditions in fixed income, credit and FX markets as volatility spikes continue in markets generally. After a few observations on bitcoin’s failure to live up to its hype as a hedge in times of turmoil and conditions in the FX market […]
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Mighty US Engine of Commerce Slows Itself from Cruising Speed

White House Watch looks at the ramping up of the US response to COVID-19. It’s been something to behold, how the United States is cautiously adjusting at every level to the threat of the coronavirus – and how the stock markets have disregarded official reassurances. Day by day, in an orderly manner, the collapse of […]
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An Earnest President Trump Gets Serious

White House Watch discusses the latest moves by President Trump to combat the spread of Covid-19. [UPDATED 13:00]: President Trump, his breezy rally personality put aside, addressed the nation Wednesday night to lend gravity to the warnings that Americans must urgently prepare for the increasingly serious threat of the dangerous coronavirus, saying he is blocking […]
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And Another Thing…

As we reported at the start of this week, Citi formally confirmed what most of us knew, that it was cutting the number of connections to its FX business. I see this as the start of a process, however – nowhere near the end – one that also reflects what is likely to be a […]
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Creeping Realism vs Markets’ Embrace of Optimism

White House Watch looks at the stock market rebound against the backdrop of worsening coronavirus news in the US. Market optimism overruled medical pessimism for a Tuesday moment, with dreams of some kind of fiscal policy panacea pitted against nightmare scenarios prompted by worsening news about the coronavirus and its anticipatory side effects. Stocks roared […]
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Stocks Oversold or Just Prematurely Sold?

White House Watch looks at Trump’s comments on payroll tax cut, income supplements, while DJIA Closes -7.8%; S&P -7.6%; Nasdaq -7.3%; 10-Yr 0.575%; German 10-Yr -0.858%. Markets show a positive bounce after Trump comments as Asia markets opened. “Good for the consumer, gasoline prices coming down!” Guess who tweeted that? And prompted 85,000 “likes”? Of […]
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Markets Collapse, Volatility Spikes, as Oil Adds to Virus Concerns

FX volatility jumped again overnight in Asia with volumes also leaping higher as dealers report activity across the region surpassing recent highs. The latest bout of activity was triggered by a 30% collapse in the oil price as Saudi Arabia responded to Russia’s decision on Friday to increase oil output rather than agree with OPEC […]
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In the FICC of It

The is one subject on the agenda for this week’s podcast – the return of volatility to FX markets. Joining P&L’s managing editor Colin Lambert to discuss the issue are David Mercer, CEO of LMAX Group, and Joel Kruger, currency strategist at LMAX Exchange. After Kruger provides his view of current conditions in, and drivers […]
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Will CBDC Play a Role in Retail Payments, Settlements?

At the Future of Payments Forum hosted by the Bank of Japan (BoJ) in Tokyo last week, deputy governor, Masayoshi Amamiya, presented his views on Central Bank Digital Currencies (CBDCs) and the future of payment and settlement systems as they pertain to retail payment services. Recent private sector initiatives, including stablecoins, indicate customers’ need for […]
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