New Overnight Developments Abroad - Daily Update
Dollar Flat, Stocks Somewhat Lower as Investors Await Some Key Corporate Earnings Announcements
October 25, 2022
U.S. equities have slipped but by less than 0.5%. Share prices were mixed in Asia and Europe, with gains of 1.0% in Japan and 0.5% in France but losses of 1.5% in Taiwan, 0.7% in in Germany, 0.6% in Great Britain, and 0.5% in India. The dollar strengthened 0.6% against the Chinese yuan but just […] More
Larry's Blog
2022 MLB World Series a Mis-Match on Paper
October 24, 2022
In the era of divisional postseason play that was introduced in 1969, only the 1976 Cincinnati Red with a 7-0 record have gone undefeated in the major league baseball playoffs. With series records of 3-0 against the Seattle Mariners in the American League Divisional Series and 4-0 against the New York Yankees in the American […] More
New Overnight Developments Abroad - Daily Update
Six Things to Know
October 24, 2022
In a vote of no confidence in the political intentions and economic policy competence of President Xi, who grabbed an extra five-year term in defiance of post-Mao tradition, foreign investors in China are rushing for the exits. Share prices plunged 6.4% in Hong Kong and 2.0% in China. The delayed September Chinese economic data were […] More
Larry's Blog
The MLB Team With the Best Record in the First Half of the 2022 Regular Season Has Been Exposed in the Playoffs
October 23, 2022
The New York Yankees compiled a 58-43 won-loss record in the first half of the 2022 regular baseball season but went 41-40 the rest of the way. That drop-off was mere prologue to the dramatic erosion of offensive productivity through eight post-season games. Although sporting the second highest average runs-per-game during the regular season, the […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: October 22 – 28, 2022
October 21, 2022
Central Banks: Monetary policies will be reviewed at the Bank of Japan, European Central Bank, Bank of Canada, Bank of Russia, Central Bank of Brazil and National Bank of Georgia. Quarterly publications of the Bank of Japan’s quarterly Outlook for Economic Activity and Bank of Canada’s Monetary Policy Report will be released. ECB President Lagarde, […] More
New Overnight Developments Abroad - Daily Update
Spooky Friday
October 21, 2022
With Halloween just ten days away, investors are hitting the weekend in a very defensive mood. Philadelphia Federal Reserve President Harker added to the hawkish drumbeat, predicting a Fed rate above 4% by December. Dollar strength against a whole spectrum of other currencies is casting a big shadow over expected corporate earnings in the coming […] More
Central Bank Watch
Turkish Central Bank Rate Cut
October 20, 2022
A bizarre tinge to this Thursday had been injected earlier by the Central Bank of Turkey whose officials slashed its one-week repo rate by 150 basis points to 10.5%. Seven reductions beginning in September 2021 add up to 850 basis points from a then-peak of 19.0%. Turkey’s easing monetary policy cuts against the global grain, […] More
Central Bank Watch
Indonesia and China
October 20, 2022
Bank Indonesia’s seven-day reverse repo rate was lifted by an expected 50 basis points to a 32-month high of 4.75%. There had been two earlier hikes this year of 25 basis points in August and 50 bps in September. At 4.75%, the rate is just 25 basis points below its pre-pandemic level of 5.0%. Indonesian […] More
New Overnight Developments Abroad - Daily Update
Unusual Developments
October 20, 2022
British Prime Minister Truss just announced her resignation after an unusually brief six weeks in office. Having campaigned as the second coming of Margaret Thatcher, Truss lost the the confidence of her own party when a public roar of protest greeted her program of radical and unfunded tax cuts. Her departure is unlikely to quell […] More
Foreign Exchange Insights and Next Week
Dollar-U.S. CPI Inflation Different Now from 1970s Experience
October 19, 2022
Intuition suggests that a spike in U.S. inflation would be associated with a depreciating dollar, and that’s what happened from the mid-1960s to 1980. Inflation measures change in the internal purchasing power of U.S. money, and changes in the dollar’s exchange rate quantify changes in the external purchasing power of money. The inflation problem that […] More
