“UBS swings back to profit and smashes earnings expectations for the first quarter”, was the CNBC headline shortly after #UBS Q1-24 results announcement. But what about all other MSM? Everyone, of course, is jumping on the same celebratory bandwagon. I wonder how many of these people influencing markets and sentiment…
Category:Daily
Daily post about finance and breaking news
IF YOU WANT TO BECOME RICH, THERE IS NO POINT IN TRYING TO TRADE A STOCK MARKET CRASH, BUT YOU SHOULD START PREPARING TO TAKE ADVANTAGE OF THE NEXT CYCLICAL BULL RUN THAT WILL COME AFTER
Last week ended with the #VIX closing at 13.49, well below its ~19.50 long-term average, while the CNN “fear and greed” index closed at 40 in “fear” territory. Warren Buffett disclosed his cash “war chest” grew to 189bn #USD and socials have been fantasizing all over the weekend about the…
WHY UNDERSTANDING CENTRAL BANKS’ ACCOUNTING IS IMPORTANT TO UNDERSTAND THE CONSEQUENCES OF THEIR ACTIONS (ESPECIALLY THE BOJ ONES)
Yesterday, I got this interesting question that I believe the answer is worth sharing with everyone: why does the #BOJ balance sheet decrease when the #BOJ intervenes in the FX? And why doesn’t that mean there is less liquidity in the global system? Understanding central banking accounting is the key…
THIS LAST BURST OF QUANTITATIVE EASING WILL ACCELERATE THE OVERALL MONETARY IMPLOSION ALREADY UNFOLDING
Yes, quantitative easing is what just happened under everyone’s nose. The #JPY interventions of this past week effectively injected about 100 billion #USD into the global financial system that previously was not circulating. Why? Because #Japan MOF selling reserves to fetch #USD that can then be sold in the market…
IS HSBC CEO “UNEXPECTEDLY” LEAVING BECAUSE THE BANK WON’T BE ABLE TO HIDE ITS PROBLEMS FOR MUCH LONGER?
Did anyone expect HSBC CEO Noel Quinn to step down yesterday? Clearly not: However, a 3 billion$ buyback plus a 21c special dividend announcement sweetened the bitter pill of the CEO’s resignation so much that the investors’ sugar-high reaction was quite remarkable, with the stock closing up 4% and now…
WHY ILLEGAL IMMIGRATION IS VERY INFLATIONARY AND IF THE FED DOES NOT HIKE RATES NOW INFLATION WILL BE HOT RIGHT BEFORE THE US ELECTIONS IN NOVEMBER
Despite the #BOJ panic intervention as soon as the #JPY broke 160 against the #USD, and a US Treasury QRA (Quarterly Refinancing Announcement) that has been disclosed for an amount higher than expected, the longer end part of the US government bonds yield curve did not bother to move that…
EXPLAINING AND SIMPLIFYING THE JPY (COUNTERINTUITIVE) “DOOM LOOP”
Last week, I ventured a bit too deeply into the plumbing of the global financial system with the article “THE JPY (COUNTERINTUITIVE) DOOM LOOP – THE MORE JPY LOSES VALUE, THE MORE LEVERAGE IS FORCED TO COME OFFLINE, THE MORE THE JPY LOSES VALUE” and I apologize to all those…
STOP DREAMING – THE US ECONOMY HAS BEEN IN A RECESSION SINCE Q2 2021!
Every time I look at a new release of public, politically, seasonally adjusted data, I struggle not to smile (often, not to laugh lately). Things must be so bad this time that 7 months away from US elections, despite adjustments beyond the limits of human creativity, we’re getting this type…
EVERYONE IN UBS IS LOOKING FOR A LIFEBOAT TO ESCAPE THE SINKING TITANIC
As I warned about many times before (#UBS ENCORE SERIES), the rescue of Credit Suisse was surely going to put #UBS in great danger and, as expected, the bank is now going through an existential crisis. The extent of the existential crisis was already clear in their Q4-23 results, where…
THE JPY (COUNTERINTUITIVE) DOOM LOOP – THE MORE JPY LOSES VALUE, THE MORE LEVERAGE IS FORCED TO COME OFFLINE, THE MORE THE JPY LOSES VALUE
Almost 9 months ago now in the post “$JPY CARRY TRADE – THE BIGGEST FINANCIAL TICKING TIME BOMB OF ALL?“, I tried to explain how, in the current market conditions where the shortage of quality collateral assets is becoming incredibly scarce, a depreciating #JPY would have put the ginormous and…