freemexy's blog
USD may decline if earnings reports from large-cap companies such as
HSBC and Disney put a discount on haven-linked assets.To get more news
about WikiFX, you can visit wikifx news official website.
Meanwhile, Fed rate decision is another factor hindering USD from any gains and forcing stock markets higher. The Fed said at the rate decision for July that it would not let go of the gas pedal in regards to quantitative easing. The notion of an uninterrupted market liquidity from the Fed helped further mitigate fears about credit crisis and inspired market sentiment. By doing so, however, it hammered the demands for haven-linked assets such as USD and amplified the gains of cycle-sensitive assets such as stocks.
In addition, a series of PMI data out of key supply chain and consumer-oriented economies will start trickling out this week. If these data is better than expected, there may be the trace for economic stabilization, which booms cycle-sensitive assets higher at the expense of haven-linked assets.
WikiFX, a third-party forex broker inquiry platform, has collected the information of 19,000+ forex brokers, 30 regulators, and helped victims recover over 300,000,000.00 USD. WikiFX App provides functions like forex brokers inquiry, calender, forex news express, calculator and other trading tools to help you get trading done with ease.
Forex brokers inquiry: in order to create a safe forex trading environment, WikiFX offers you two methods of checking the compliance of forex brokers, online checking and offline investigation report. WikiFX has an independent inspection team, conducting on-spot visit to brokers offices to identify they are trustworthy or not.
Meanwhile, Fed rate decision is another factor hindering USD from any gains and forcing stock markets higher. The Fed said at the rate decision for July that it would not let go of the gas pedal in regards to quantitative easing. The notion of an uninterrupted market liquidity from the Fed helped further mitigate fears about credit crisis and inspired market sentiment. By doing so, however, it hammered the demands for haven-linked assets such as USD and amplified the gains of cycle-sensitive assets such as stocks.
In addition, a series of PMI data out of key supply chain and consumer-oriented economies will start trickling out this week. If these data is better than expected, there may be the trace for economic stabilization, which booms cycle-sensitive assets higher at the expense of haven-linked assets.
WikiFX, a third-party forex broker inquiry platform, has collected the information of 19,000+ forex brokers, 30 regulators, and helped victims recover over 300,000,000.00 USD. WikiFX App provides functions like forex brokers inquiry, calender, forex news express, calculator and other trading tools to help you get trading done with ease.
Forex brokers inquiry: in order to create a safe forex trading environment, WikiFX offers you two methods of checking the compliance of forex brokers, online checking and offline investigation report. WikiFX has an independent inspection team, conducting on-spot visit to brokers offices to identify they are trustworthy or not.
US stocks moved higher on Monday, as traders anticipated a deal between
the White House and Congressional Democrats. Most sectors in the S&P
500 index were higher, led by Healthcare. Real-estate bucked the trend.
The Nasdaq hit a fresh new record high, led by gains in Microsoft and
the Semis. The VIX volatility index hit a fresh 5-month low at 22,
before rebounding into the close to settle near 24.40. Apple shares
continued to rally climbing nearly 3% on Monday after notching up a 14%
gain last week.To get more news about WikiFX, you can visit wikifx news official website.
Manufacturing in the US accelerated the most in 16-months, which is a forward-looking index. This helped buoy US yields which in turn help the US dollar rebound. The dollar rebounded putting pressure on precious metals, but oil and natural gas rallied helping to buoy the energy space. Natural gas prices surged 16% on Monday on a warm weather forecast. Microsoft confirmed that it would work out a deal to purchase Chinese company TikTok from Byedance. President Trump said that he would want part of the sale to come to the American People. This enraged some businesses in China.
ISM Manufacturing Accelerates by the Fast Pace in 16-months
U.S. manufacturing expanded in July at the fastest pace since March 2019. The Institute for Supply Management reported that its manufacturing index rose to 54.2 last month from 52.6. Expectations were for a reading of 53.6. The ISMs measure of production increased in July to 62.1, the highest level since August 2018, and a gauge of orders climbed to 61.5, which was the strongest since September of that year. Customer inventories fell to 41.6 in July, the lowest this year and showing that stockpiles were shrinking at a faster pace. Factory inventories also declined after barely growing a month earlier.
Manufacturing in the US accelerated the most in 16-months, which is a forward-looking index. This helped buoy US yields which in turn help the US dollar rebound. The dollar rebounded putting pressure on precious metals, but oil and natural gas rallied helping to buoy the energy space. Natural gas prices surged 16% on Monday on a warm weather forecast. Microsoft confirmed that it would work out a deal to purchase Chinese company TikTok from Byedance. President Trump said that he would want part of the sale to come to the American People. This enraged some businesses in China.
ISM Manufacturing Accelerates by the Fast Pace in 16-months
U.S. manufacturing expanded in July at the fastest pace since March 2019. The Institute for Supply Management reported that its manufacturing index rose to 54.2 last month from 52.6. Expectations were for a reading of 53.6. The ISMs measure of production increased in July to 62.1, the highest level since August 2018, and a gauge of orders climbed to 61.5, which was the strongest since September of that year. Customer inventories fell to 41.6 in July, the lowest this year and showing that stockpiles were shrinking at a faster pace. Factory inventories also declined after barely growing a month earlier.
Warlocks are true masters of the Shadow Magic and other Dark and
Forbidden arts. They control Demons, employ Destructive Magic as a
weapon and take pleasure from inflicting pain and suffering to their
enemies. Warlocks are very strong and versatile Damage Dealers,
especially when leveling, even though their Demon Minions are not as
strong as Hunter's Beasts when it comes to Tanking. Their incredible
utility, survivability, and DPS toolkits make them one of, if not the
best Class for World PvP. Potent Crowd Control options in a form of Fear
and Seduction abilities, combined with lethal Damage over Time and
Burst Damage spells are their fearsome (no pun intended) trademarks.
Their only true weakness comes in the form of low mobility, but let us
face it; if Warlocks had access to speed-increasing Talent or a Spell
they would be just unstoppable (to be honest, they are unstoppable even
with their limited mobility in some cases).To get more news about Buy WoW Classic Items, you can visit lootwowgold news official website.
When in a group, Warlocks provide great Utility in a form of Soulstones that allow an in-Combat resurrection of a pre-designated party member (usually a Healer in a 5-man group or, less often, a Tank), Healthstones that work like Health Potions, and the Ritual of Summoning that makes assembling a Group much, much easier. Contrary to what their lore background might suggest, Warlocks are best friends of any Player that likes to run through any kind of group content.
This guide will aid you and your Warlock on your journey to level 60; it will help you choose a Race, present you with an optimal leveling Talent build, point you towards Dungeons and Quests that award worthwhile Wands, provide some tips & tricks, and more.
When in a group, Warlocks provide great Utility in a form of Soulstones that allow an in-Combat resurrection of a pre-designated party member (usually a Healer in a 5-man group or, less often, a Tank), Healthstones that work like Health Potions, and the Ritual of Summoning that makes assembling a Group much, much easier. Contrary to what their lore background might suggest, Warlocks are best friends of any Player that likes to run through any kind of group content.
This guide will aid you and your Warlock on your journey to level 60; it will help you choose a Race, present you with an optimal leveling Talent build, point you towards Dungeons and Quests that award worthwhile Wands, provide some tips & tricks, and more.
Hunters are ranged damage-dealers that rely on their loyal Pets when it comes to keeping their enemies at a safe distance. As a Class, they are easy to play and surprisingly difficult to master, as there are a lot of things that a good Hunter must learn and finetune (micromanaging Pets, Stutter Stepping, playing around Hunter's main weakness in PvP - a Dead Zone, etc.). Their high Damage output and good sustain, combined with their Pet companions, let them progress through levels at a pace unmatched by any other Class and even solo level-appropriate Elite Mobs without too much of a problem.To get more news about Buy WoW Shadowlands Gold, you can visit lootwowgold news official website.
Hunters Excel in both Open World and Battleground PvP thanks to their high Damage output, surprisingly potent Crowd Control options, very high Range, and a Pat that can harass their Targets and be very annoying to deal with efficiently. Their main weakness in PvP is the so-called Dead Zone, which is an area around the Hunter between his minimal Ranged Attack and maximum Melee Attack ranges - between 8 and 5 yards around him (which means that Hunter can't attack Targets that are within that area). The Dead Zone can be exploited by experienced enemy Spell Casters and make Hunter's life rather miserable (but exploiting it well takes a lot of skill and is by no means easy). Their End-Game PvE DPS, while not the highest, is good enough to secure them spots in Raids when combined with their kiting and CC abilities that are simply necessary for some encounters.
This guide will aid you and your Hunter on your journey to level 60; it will help you choose a Race, present you with an optimal leveling Talent build, point you towards Dungeons and Quests that award worthwhile Ranged Weapons, provide some tips & tricks, and more.
Each Race has unique traits and abilities, some of which greatly benefit a Hunter, other - not so much. More competitive Players might even want to choose their Faction based on Racial traits of one of its member Races. We will take a closer look at all Races that can choose the path of a Hunter and determine which are the best for PvP and PvE.
While leveling a Warrior to 60 is a tough challenge, players who manage
to do it are rewarded with a Class that has the most potential in the
game (both for Tanking and Damage Dealing). For the most part, Fury
Warriors top DPS meters in Classic and scale very well with Gear, which
means that they get even better as the game progresses through Raid
Tiers. However, the fact that the Class does well in the End-Game is
wide known, which results in an abundance of Warriors and potentially a
substantial difficulty in finding a strong Raiding Guild. Another side
effect of Warrior's popularity and clearly visible strength is the fact
that solid gear is hard to get, as competition for it is always fierce
(there will be multiple Fury Warriors in every Raid and all of them will
want exact same items). If you want to main a Fury Warrior, you have to
be one of the best Fury Warriors out there, otherwise, you will drown
in a sea of other Rage users.To get more news about WoW Gold Classic, you can visit lootwowgold news official website.
There is only one profession that makes a real impact in Raids and it is Engineering (Alchemy is also a decent option, but you can buy Flasks, Elixirs, and Potions from other players, which makes it much less impactful). It gives you access to powerful explosives that increase your AoE and Single-Target DPS. On top of that, it lets you create and use Gnomish Battle Chicken Trinket that summons a Guardian Chicken that fights at your side and has a chance on hit to cast a "Battle Squawk" which boosts Melee attack speed of all Party members by 5%, making it a must-have in every competitive group. The fact that Engineering is also considered the best PvP profession is an added benefit to its power in PvE environment.
Proper Talent allocation is essential for maximizing Damage output. Here, we will describe the most optimal spec and lead you through the Talent Trees level-by-level to explain some choices.
There are two paths to choose - the standard Dual Wield build that provides the highest sustained DPS and an alternative Two-Handed build that can be used if you happen upon a solid Two-Handed Weapon that is clearly better than your current One Handers. Moreover, the Two-Handed build is a good choice at the start, because of lower Hit requirements (with a Two-Handed weapon, you ignore dual-wielding Hit chance penalty), especially on Horde's side thanks to the Windfury Totem.
There is only one profession that makes a real impact in Raids and it is Engineering (Alchemy is also a decent option, but you can buy Flasks, Elixirs, and Potions from other players, which makes it much less impactful). It gives you access to powerful explosives that increase your AoE and Single-Target DPS. On top of that, it lets you create and use Gnomish Battle Chicken Trinket that summons a Guardian Chicken that fights at your side and has a chance on hit to cast a "Battle Squawk" which boosts Melee attack speed of all Party members by 5%, making it a must-have in every competitive group. The fact that Engineering is also considered the best PvP profession is an added benefit to its power in PvE environment.
Proper Talent allocation is essential for maximizing Damage output. Here, we will describe the most optimal spec and lead you through the Talent Trees level-by-level to explain some choices.
There are two paths to choose - the standard Dual Wield build that provides the highest sustained DPS and an alternative Two-Handed build that can be used if you happen upon a solid Two-Handed Weapon that is clearly better than your current One Handers. Moreover, the Two-Handed build is a good choice at the start, because of lower Hit requirements (with a Two-Handed weapon, you ignore dual-wielding Hit chance penalty), especially on Horde's side thanks to the Windfury Totem.
UBS Group (NYSE:UBS) is one of the world's premier asset managers, with
business lines in investment banking, corporate and consumer banking,
and the golden goose: global wealth management. After plunging in the
market's sell-off earlier this year, UBS' stock has been climbing
steadily on the back of a strong first-quarter earnings report. It's now
down about 7% in 2020 after surging more than 50% from its lows.To get
more UBS news, you can visit shine news official website.
While the other big bank stocks have been largely sluggish since March, UBS is racing ahead in a competitive space. Here's what's behind UBS' rally, and why it might be a great buy today.During the Great Recession, banks -- both foreign and domestic -- were a large part of the problem. Overleveraged trading divisions were hit hard as mortgage-backed securities, one of the largest markets for bond notes and derivatives trading, were decimated.
The fundamentals of the current recession are very different. No longer so overextended, banks had been on a relatively conservative growth trajectory, bolstered by strong balance sheets and a booming economy. While many are bracing for extensive loan losses, they appear to be better capitalized in this crisis.
And some -- those that rely less on lending and more on wealth management and investment banking -- are doing even better. Given its market positioning and revenue drivers, UBS is one of the institutions getting a boost during this crisis. For the quarter ending on March 31, UBS reported that net profit after taxes rose 40% year over year, a phenomenal gain.
UBS' global wealth management group, which accounted for 57% of the company's operating income, reported numbers that reveal a coronavirus bump. While net interest income remained fairly steady (up 2% year over year), transaction-based income increased 19% over the same period in 2019 and 28% from the fourth quarter on "higher levels of client activity" -- understandable given March's record volatility.
While often derided as the least prestigious (read: smallest) of the global investment banks, UBS' investment banking division (which contributed 31% of operating income) reported stunning numbers in the first quarter: $1.6 billion in net income, up from $949 million in the previous quarter and $1.1 billion in Q1 2019 -- incredible increases of 70% and 47%, respectively. With the global recovery still very much up in the air, that continued uncertainty may mean those elevated client activity levels are here to stay. So, while banks like JPMorgan Chase have failed to regain traction after the coronavirus plunge, UBS became the little engine that could.
According to a UBS investor sentiment survey conducted on global investors with more than $1 million of investable assets and business owners with more than $1 million in annual revenue, investors aren't panicking. While 46% of surveyed clients reported short-term (over the next 12 months) pessimism, 70% were optimistic about the world economy over the next 10 years. Of those clients, only 16% plan to decrease their investments, while 47% do not plan to adjust their portfolio. And, in the face of a global recession, 37% plan to increase their investments. With investor sentiment this high, UBS can feel safe delivering value in the face of global turmoil.
While the other big bank stocks have been largely sluggish since March, UBS is racing ahead in a competitive space. Here's what's behind UBS' rally, and why it might be a great buy today.During the Great Recession, banks -- both foreign and domestic -- were a large part of the problem. Overleveraged trading divisions were hit hard as mortgage-backed securities, one of the largest markets for bond notes and derivatives trading, were decimated.
The fundamentals of the current recession are very different. No longer so overextended, banks had been on a relatively conservative growth trajectory, bolstered by strong balance sheets and a booming economy. While many are bracing for extensive loan losses, they appear to be better capitalized in this crisis.
And some -- those that rely less on lending and more on wealth management and investment banking -- are doing even better. Given its market positioning and revenue drivers, UBS is one of the institutions getting a boost during this crisis. For the quarter ending on March 31, UBS reported that net profit after taxes rose 40% year over year, a phenomenal gain.
UBS' global wealth management group, which accounted for 57% of the company's operating income, reported numbers that reveal a coronavirus bump. While net interest income remained fairly steady (up 2% year over year), transaction-based income increased 19% over the same period in 2019 and 28% from the fourth quarter on "higher levels of client activity" -- understandable given March's record volatility.
While often derided as the least prestigious (read: smallest) of the global investment banks, UBS' investment banking division (which contributed 31% of operating income) reported stunning numbers in the first quarter: $1.6 billion in net income, up from $949 million in the previous quarter and $1.1 billion in Q1 2019 -- incredible increases of 70% and 47%, respectively. With the global recovery still very much up in the air, that continued uncertainty may mean those elevated client activity levels are here to stay. So, while banks like JPMorgan Chase have failed to regain traction after the coronavirus plunge, UBS became the little engine that could.
According to a UBS investor sentiment survey conducted on global investors with more than $1 million of investable assets and business owners with more than $1 million in annual revenue, investors aren't panicking. While 46% of surveyed clients reported short-term (over the next 12 months) pessimism, 70% were optimistic about the world economy over the next 10 years. Of those clients, only 16% plan to decrease their investments, while 47% do not plan to adjust their portfolio. And, in the face of a global recession, 37% plan to increase their investments. With investor sentiment this high, UBS can feel safe delivering value in the face of global turmoil.
The SAIC Motor Group, China’s biggest automaker, reported retail sales
up 2.8 percent in June to 479,000 vehicles from the same period of last
year.To get more saic motor news, you can visit shine news official website.
It said it had achieved positive year-on-year growth of retail sales each month since April and that sales had increased by 101.8 percent in the second quarter compared with this year’s first quarter.
Sales in the first quarter had been impacted by the COVID-19 situation, but the automobile industry was now in recovery, and the Shanghai government’s policies to promote purchases had achieved good results.
In the first half of the year, SAIC focused on technological innovation, laying a foundation for future sustainable development, it said, with great efforts in the field of new-energy vehicles, intelligent and connected vehicles and software technology.
SAIC said its business performance in overseas market is good, with its self-owned brand sales overseas reaching 79,000 units, a 17.3 percent increase year on year.
In the second half of the year, SAIC will announce commencement of business in Mexico. SAIC's MG brand will also enter Spain, Switzerland and Germany.
In early April, Shanghai said it would further rev up auto consumption and released a series of policies. A number of new car launches and preferential promotions took place during the two-month Double Five Shopping Festival. SAIC held an auto carnival at the Shanghai Exhibition Center from May 1 to May 10.
Zhang Xiaofeng, an independent market analyst, said consumer confidence is improving and thus SAIC Motor's performance is also improving. In the second half of this year, Zhang said SAIC is expected to continue to perform well.
It said it had achieved positive year-on-year growth of retail sales each month since April and that sales had increased by 101.8 percent in the second quarter compared with this year’s first quarter.
Sales in the first quarter had been impacted by the COVID-19 situation, but the automobile industry was now in recovery, and the Shanghai government’s policies to promote purchases had achieved good results.
In the first half of the year, SAIC focused on technological innovation, laying a foundation for future sustainable development, it said, with great efforts in the field of new-energy vehicles, intelligent and connected vehicles and software technology.
SAIC said its business performance in overseas market is good, with its self-owned brand sales overseas reaching 79,000 units, a 17.3 percent increase year on year.
In the second half of the year, SAIC will announce commencement of business in Mexico. SAIC's MG brand will also enter Spain, Switzerland and Germany.
In early April, Shanghai said it would further rev up auto consumption and released a series of policies. A number of new car launches and preferential promotions took place during the two-month Double Five Shopping Festival. SAIC held an auto carnival at the Shanghai Exhibition Center from May 1 to May 10.
Zhang Xiaofeng, an independent market analyst, said consumer confidence is improving and thus SAIC Motor's performance is also improving. In the second half of this year, Zhang said SAIC is expected to continue to perform well.
Belgium
enforced tough restrictions on social interactions again as it battles
fresh outbreaks of the coronavirus that have multiplied in the past two
weeks.To get more news about OlympusFx, you can visit wikifx news official website.
Each
household is allowed to have leisurely contact with no more than five
other persons for the next four weeks starting Wednesday, Prime Minister
Sophie Wilmes said in Brussels. That?s a reduction from 15 per week,
which was on an individual basis. The epidemic situation in the city of
Antwerp, home to Europe?s second-biggest port, will require ?forceful?
action from local authorities, according to Wilmes, who said the
restrictions should help the country steer clear from a new lockdown.
???We?re
touching individual liberties. That?s a tough message,? Wilmes told
reporters. ?But the virologists tell us a lot of infection clusters are
linked to parties, marriages and the like.?
??Belgium
has been confronted with a resurgence of the epidemic since mid-July
following two months of gradual reopening at a time when the average
number of daily infections never dropped below 80. Antwerp, the most
populous city of Belgium?s Dutch-speaking northern region of Flanders,
has been hit the hardest, with a rate of 108 weekly infections per
100,000 inhabitants. About 17% of Belgium?s 581 municipalities have now
crossed the threshold of 20 weekly infections per 100,000 inhabitants
set by health officials to signal excessive spread.
Old Mutual Ltd. is poised to stop trading its shares on the Zimbabwe Stock Exchange, the latest step in the governments efforts to bring order to its chaotic foreign-exchange market.To get more news about OlympusFx, you can visit wikifx news official website.
The insurer agreed to move its listing to a new bourse in the country that will only deal in foreign currency, three people with direct knowledge of the matter said. The deal came after talks on Monday between representatives of Old Mutual, the Treasury, the Securities and Exchange Commission of Zimbabwe and the ZSE, the people said, asking not to be identified because negotiations were private.
The government of President Emmerson Mnangagwa has blamed a plunge in the local currency on the 175-year-old insurer‘s share price. Companies were using the so-called Old Mutual Implied Rate to determine the forward value for the Zimbabwean currency by using differences in the dollar values of the company’s securities in London, Johannesburg and Harare.
By eradicating the implied rate, the nation‘s ruling party is seeking to end a multitude of exchange rates used by Zimbabweans to navigate the country’s myriad economic challenges. The government last week set new regulations to compel businesses to use a single exchange rate for pricing goods and services in a bid to tame inflation of 737% in a country battling with shortages of everything from food to fuel.
Tabby Tsengiwe, the Johannesburg-based insurer‘s spokeswoman, didn’t respond to a call or a text message seeking comment. Finance Minister Mthuli Ncube didnt respond to calls for comment.
Another meeting is scheduled for next week to resolve administrative issues and discuss the finer details, the people said.
A surge in Old Mutuals Zimbabwe stock -- which like other shares was being used as a hedge against inflation -- widened the gap between its South African and U.K. securities, causing the OMIR to rise to 122. The Zimbabwe dollar has weakened to 72.1470 per U.S. dollar on a foreign-currency auction system that was introduced after a currency peg of 25 was dropped last month.
Terminating Old Mutual‘s listing paves the way for dealing to resume on the Harare-based ZSE -- which was abruptly halted on June 28 -- once Zimbabwe’s Financial Intelligence Unit has completed a probe into trading on the bourse. It is still unclear when the stock exchange in the resort town of Victoria Falls will begin operating.
Old Mutual, which listed on the Zimbabwe Stock Exchange in December 1999, opened its first office in the country in 1902 and offers life, property and casualty cover, asset management, property development and banking services in the country.
The insurer agreed to move its listing to a new bourse in the country that will only deal in foreign currency, three people with direct knowledge of the matter said. The deal came after talks on Monday between representatives of Old Mutual, the Treasury, the Securities and Exchange Commission of Zimbabwe and the ZSE, the people said, asking not to be identified because negotiations were private.
The government of President Emmerson Mnangagwa has blamed a plunge in the local currency on the 175-year-old insurer‘s share price. Companies were using the so-called Old Mutual Implied Rate to determine the forward value for the Zimbabwean currency by using differences in the dollar values of the company’s securities in London, Johannesburg and Harare.
By eradicating the implied rate, the nation‘s ruling party is seeking to end a multitude of exchange rates used by Zimbabweans to navigate the country’s myriad economic challenges. The government last week set new regulations to compel businesses to use a single exchange rate for pricing goods and services in a bid to tame inflation of 737% in a country battling with shortages of everything from food to fuel.
Tabby Tsengiwe, the Johannesburg-based insurer‘s spokeswoman, didn’t respond to a call or a text message seeking comment. Finance Minister Mthuli Ncube didnt respond to calls for comment.
Another meeting is scheduled for next week to resolve administrative issues and discuss the finer details, the people said.
A surge in Old Mutuals Zimbabwe stock -- which like other shares was being used as a hedge against inflation -- widened the gap between its South African and U.K. securities, causing the OMIR to rise to 122. The Zimbabwe dollar has weakened to 72.1470 per U.S. dollar on a foreign-currency auction system that was introduced after a currency peg of 25 was dropped last month.
Terminating Old Mutual‘s listing paves the way for dealing to resume on the Harare-based ZSE -- which was abruptly halted on June 28 -- once Zimbabwe’s Financial Intelligence Unit has completed a probe into trading on the bourse. It is still unclear when the stock exchange in the resort town of Victoria Falls will begin operating.
Old Mutual, which listed on the Zimbabwe Stock Exchange in December 1999, opened its first office in the country in 1902 and offers life, property and casualty cover, asset management, property development and banking services in the country.
Bank Indonesias unprecedented move to buy about $27 billion in bonds
directly from the government may prove to be an exception rather than
the norm in emerging markets.To get more news about OlympusFx, you can visit wikifx news official website.
With the world economy in crisis and Modern Monetary Theory gaining attention, governments are being pressured to spend more and turn to their central banks to print money to foot the bill. But when it comes to scooping up that debt, most central banks are doing it in the secondary market.
Sources: Institute of International Finance, using data from Bank for International Settlements, International Monetary Fund, national governments
Three weeks on, currency and bond markets appear to have given Indonesia a pass on its direct financing foray. Analysts say thats because the central bank gave a clear signal that it was a one-time program and officials spearheading the plan, like Finance Minister Sri Mulyani Indrawati, are credible.
“The Indonesia burden-sharing program is a success given it has a clear timeline and framework,” said Jean-Charles Sambor, London-based head of emerging markets fixed income at BNP Paribas Asset Management. “If, however, we start to see a material increase in the size of such programs in emerging markets, it could result in considerable weakness in the currency.” In many emerging nations, laws forbid the central bank from purchasing debt straight from the government, with several now buying domestic paper in the secondary market instead. Fitch Ratings Ltd. cites the following countries as having taken the latter approach: Indonesia, the Philippines, Thailand, Poland, South Africa, Croatia, Romania, Hungary, Chile, Costa Rica and Colombia.
In Argentina, which defaulted on its debt earlier this year, the central bank has transferred 1.3 trillion pesos ($18 billion) to the Treasury since the lockdown was announced on March 19. Cash in circulation has surged, dollar demand is high, and with a massive economic contraction underway, consumer prices are set to rise a staggering 53% over the next 12 months.
The Bank of Russia came under pressure to help fund a growing budget deficit after the energy exporter was hit by a double blow from the pandemic and slump in global oil demand. However, real interest rates remain positive there, so theres still room to use conventional measures.
The South African Reserve Bank is resisting calls for deficit financing, arguing it would bankrupt the central bank. And while the Reserve Bank of India hasn‘t bought bonds directly from the government, it’s expanded its balance sheet amid the pandemic by allowing Indian banks to borrow at cheap rates and lend money back to the federal government.
“There has been a lot of talk of monetary financing, but much less action,” said Elina Ribakova, deputy chief economist at the Washington-based Institute of International Finance.
With the world economy in crisis and Modern Monetary Theory gaining attention, governments are being pressured to spend more and turn to their central banks to print money to foot the bill. But when it comes to scooping up that debt, most central banks are doing it in the secondary market.
Sources: Institute of International Finance, using data from Bank for International Settlements, International Monetary Fund, national governments
Three weeks on, currency and bond markets appear to have given Indonesia a pass on its direct financing foray. Analysts say thats because the central bank gave a clear signal that it was a one-time program and officials spearheading the plan, like Finance Minister Sri Mulyani Indrawati, are credible.
“The Indonesia burden-sharing program is a success given it has a clear timeline and framework,” said Jean-Charles Sambor, London-based head of emerging markets fixed income at BNP Paribas Asset Management. “If, however, we start to see a material increase in the size of such programs in emerging markets, it could result in considerable weakness in the currency.” In many emerging nations, laws forbid the central bank from purchasing debt straight from the government, with several now buying domestic paper in the secondary market instead. Fitch Ratings Ltd. cites the following countries as having taken the latter approach: Indonesia, the Philippines, Thailand, Poland, South Africa, Croatia, Romania, Hungary, Chile, Costa Rica and Colombia.
In Argentina, which defaulted on its debt earlier this year, the central bank has transferred 1.3 trillion pesos ($18 billion) to the Treasury since the lockdown was announced on March 19. Cash in circulation has surged, dollar demand is high, and with a massive economic contraction underway, consumer prices are set to rise a staggering 53% over the next 12 months.
The Bank of Russia came under pressure to help fund a growing budget deficit after the energy exporter was hit by a double blow from the pandemic and slump in global oil demand. However, real interest rates remain positive there, so theres still room to use conventional measures.
The South African Reserve Bank is resisting calls for deficit financing, arguing it would bankrupt the central bank. And while the Reserve Bank of India hasn‘t bought bonds directly from the government, it’s expanded its balance sheet amid the pandemic by allowing Indian banks to borrow at cheap rates and lend money back to the federal government.
“There has been a lot of talk of monetary financing, but much less action,” said Elina Ribakova, deputy chief economist at the Washington-based Institute of International Finance.