The Bank of England issued a statement to try to calm the market, which has been volatile since the UK government announced a new fiscal policy on the 23rd, but some emergency rate hikes Speculation proved false and the pound it has been sold again. Since the UK voted to leave the European Union (EU) in a referendum in June 2016, the pound has depreciated roughly in the range of $ 1.2-1.4 per pound, but the current parity is aware, further development could lead to the formation of a new range. The pound was close to $ 5 during World War I. Does this long-term downtrend signal Britain’s decline? Here are five things to keep in mind as you start your day.
as necessary
of the Bank of EnglandGovernor Baileyhe said in a statement that he was monitoring developments in financial markets “extremely closely”. “We will not hesitate to change interest rates to the extent necessary to bring inflation back to the 2% target in a sustainable way over the medium term,” said the policymaker. But he denied speculation that the Bank of England would take emergency action, adding, “At our next regular meeting, we will do a careful assessment of the government announcement’s impact on demand and inflation, and on the weaker pound, and we will act accordingly. “he explained.
UK stocks are also expected to decline
Founder of EDL Capital macro hedge fund management, EdouardDragladHe said the Bank of England would be forced to act to stabilize the pound and the UK bond market. Already betting on the drop in the pound, he took profits overnight when the pound fell. He also said he holds a fifth of his position on a weaker pound and a weaker position on UK bonds in anticipation of a rate hike. As for the official interest rate, we believe it may possibly exceed 10%.
accumulate money
As the Fed’s hawk-induced storm rages across all asset classes, investorsa place to escape the stormHow is cash going. A total of $ 4.6 trillion has been accumulated in US money market mutual funds (MMMFs), and very short-term bond funds currently hold around $ 150 billion. Once returns close to zero, these asset classes now produce returns at the high end of 2%, in some cases 3% to 4%, or even higher.
intolerable situation
The dollar’s recent strength has pushed risky assets such as stocks into “unbearable conditions” and a dollar this strong in the past has led to financial or economic crises, Morgan Stanley’s Michael said.Wilsonnoted Mr. Referring to the end of the tech stock bubble in 2000, the global financial crisis of 2008 and the sovereign debt crisis of 2012, he said: “Such an ‘event’ is difficult to predict, but the conditions are right for it to happen. ” Explained In the report, we expect the S&P 500 to reach a “final low” at the 3000-3400 level by the end of the year or early next year.
first lesson
of the Boston FedCollinsIn his first speech since taking office, the governor said further tightening of policies is needed to curb persistently high inflation and that some amount of unemployment will inevitably occur in the process. The governor will have the right to vote at this year’s Federal Open Market Committee (FOMC) meeting.Jeremy Wharton of the University of PennsylvaniaSiegelFed Chairman Jerome Powell should apologize for monetary policy missteps over the past two years.
More hot news
About 4,300 people will attend former Prime Minister Abe’s state funeral today
Corporate bond supply and demand, worse end and recovery in 2H? -SMBC Nikko 2H Outlook
–