What’s going on? The UK economy grew only 0.1% in July, 1/10 of the rate in June. What does this mean? While June was the end of a notably strong 2Q, which saw the UK economy grow 5%. T Things are now very different in 3Q, however: The government has withdrawn various economic support measures The supply…
Tag: interest rate
Ep 170: Record-breaking year of M&A and what’s behind
What’s going on? 2021 is on track to become a record-breaking year for M&A, with plenty of companies reporting double or triple-digit % increases in the # of deals they’re striking vs last year. What does this mean? $4 trillion worth of deals have taken place since the start of 2021, more than twice this time…
Ep 162: The Fed’s announcement of slowing the bond-buying program and its effects on the economy
What’s going on? The Fed indicated that it’ll start tapering (slowing) its bond-buying program before the end of 2021 – just like investors expected. What does this mean? In 2020, the Fed cut interest rates to near-0% and started buying up $120b worth of bonds/ month. That flood of cheap money actually helped the economy stay alive…
Ep 145: Eurozone bond yields are promised not to rise
What’s going on? The European Central Bank promised to keep eurozone bond yields from rising. What does that mean? Like the US, the eurozone’s pumped lots of money into the economy to keep things stable throughout the pandemic. Now that a recovery’s near, investors are worried that those money would lead to inflation, forcing the…
Ep 142: HSBC’s better-than-expected quarterly earnings and Asian expansion plan
What’s going on? HSBC posted better-than-expected quarterly earnings It admitted it’ll need to start expanding into Asia sooner. What does that mean? HSBC has had two big challenges lately: it’s been making less from lending due to ultra-low interest rates, while simultaneously having to set aside enough cash for bad debt allowances; Even though last quarter’s…
Ep 104: Trial And Error
What’s Going On Here? After the Fed’s emergency interest rate cut on Tuesday, some investors were left wondering if the central bank had used the right tool for the job. What Does This Mean? When central banks lower the cost of borrowing money, they’re trying to encourage companies to take out loans and use that…
Ep 88: Trim Pickings
What’s Going On Here? The International Monetary Fund (IMF) trimmed its growth forecasts for the global economy, but it also softened previous risk warnings. What Does This Mean? The IMF now expects the world economy to grow 3.3% in 2020 and 3.4% in 2021, down from previous forecasts of 3.4% and 3.6%. Still, that’d represent a…
Ep 87: Step Right Up
What’s going on? US investment bank JPMorgan Chase proved its strength and won a prize when it announced financial results: its 2019 was the most profitable year for any US bank ever. What does this mean? JPMorgan reported a 21% surge in profit last quarter: largely driven by a 56% increase in trading revenue. Bond trading was…
Ep 76: A Recipe For Success
What’s Going On Here? Morgan Stanley whipped up an optimistic prediction: it reckons the start of next year will provide all the ingredients we need for a global economic recovery. What Does This Mean? The past two years have seen global economic growth slow from 3.8% to 3%, in part because of the US-China trade…
Ep 62: That Shrinking Feeling
What’s Going On Here? German economic activity shrank in September for the first time in six and a half years – and the jury’s out on just how deep this rabbit-hole could go. What Does This Mean? Monthly surveys ask companies in the manufacturing and services sectors how busy they’ve been. And in September, those in the…
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