Category: Economics

There is Data, but Market Activity is Slowing on Cue


The foreign exchange market is becalmed, leaving the US dollar narrowly mixed in uneventful and light turnover. The euro has been confined to less than a third of a cent range. Yesterday it briefly dipped below its 20-day moving average for the first time since the ECB met earlier this month. It remains in the upper half of the two-range ($1.08-$1.10) that has confined prices most of this month. There was only one close outside of this range (December 9) since that ECB meeting.

Monetary Policy is not the only European-U.S. Divergence


The trajectories of the monetary policy at the Federal Reserve and the European Central Bank are diverging.  It is the keystone of our anticipation of further euro weakness in the year ahead.  In addition to this monetary divergence, a geopolitical divergence will be of growing significance.

Corsica Nationalists Grow More Popular as Economy Falters


French politicians were taken aback when Corsican nationalists won December regional elections by a landslide, according to AFP. The Corsican public has long expressed frustration with such issues as a downtrodden economy, lack of autonomy, and North African immigration.

Corsica’s unemployment rate stands at 11 percent, slightly higher than France’s national average, and youth unemployment remains high. Corsica is an island off the coast of Italy, but annexed by France in 1768.

And So Begins the End of 2015


Australia, New Zealand, UK markets closed for Boxing Day.  After rallying last week, oil prices are off 2%, base and precious metals lower.  European core and peripheral bond markets are highs, with yields slipping mostly 2-3 bp.  There is no end to the political uncertainty in Spain, but Spanish 10-year bonds are matching regional performance.

One Holiday Shortened Week Leads to Another


The US dollar traded heavily in the holiday-shortened week.  It slipped against all the major currencies.  The recovery in commodity prices, the new stimulus Chinese officials suggested, and the relatively high yields conspired to help lift the dollar-bloc currencies.  Them and the Swedish krona fared best.  Sterling, the Swiss franc, and Japanese yen managed to eke out small gains. 

The Right Formula could Help You Find the Perfect Gift


According to Sheldon from The Big Bang Theory, if someone is buying you a Christmas gift then the “essence of the custom is that I now have to go out and purchase for you a gift of commensurate value and representing the same perceived level of friendship as that represented by the gift you’ve given me”.

However, if you, like Sheldon, are having trouble deciding who to buy presents for this Christmas, and what to buy, then the mathematics of Game Theory can help.

https://youtu.be/eOWazhuRyME

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Categorized as Economics

Enjoy an Environmentally-Friendly Christmas This Year


Our impact on the environment might not be at the forefront of our minds during the rush of the Christmas festive season. We might be far more worried about our light wallets from the expected pile of presents and massive food feast. Many of us are concerned about just getting through it.

However, the consumer madness of late December is the perfect time to ponder the consequences of our habits and excesses. Christmas is probably the most extravagant of our Western celebrations.

World Bank Finally Acknowledges Development Projects Displacing Local Populations


The World Bank has come under fire recently for policies and practices that many consider shortsighted and insensitive to the less fortunate. A glaring example involves the World Bank’s failure to provide oversight of development projects that force people from their lands and/or harm their means of making a living. However, after years of delay, the World Bank has announced that it will take action to address these social issues. 

No News Shortage as the Holidays Creep Closer


China’s Central Economic Work Conference is responsible for setting the annual GDP target. Although it was not formally announced, President Xi previously indicated that the goal for the economy to expand by around 6.5% a year through 2020.  More telling than the GDP target is the intentions expressed in the new slogan:  flexible monetary policy, forceful fiscal policy.  For Chinese officials, these are not ends in themselves but means to another end.

New Treaty Will Expand Air Travel between US and Mexico


A new treaty between the United States and Mexico promises to greatly expand air travel between the two neighbors. U.S. and Mexican authorities believe this will lead to a boost in travel, shipping, and economic exchange between the two nations. Meanwhile, air carriers have roundly supported the treaty, anticipating substantial additions to their annual revenues.