Treasury Secretary Janet Yellen tells counterparts that she sees a "moral case" for freeing up frozen Russian assets to help Ukraine
Yellen urges tapping frozen Russian central-bank assets to aid Ukraine [Market Watch]
This is the US Debt Clock
It's curiously fascinating and horrifying at the same time. It's the speed at which the numbers increase.
US$34 trillion in debt with debt interest costs running at US$1 trillion per year, a 2-3$US trillion budget deficit to fund and with tax revenue at only US$4.5 trillion, my dog can runs the numbers and she tells me - it's a bust.......
Washington clearly has run out options for funding Ukraine.
Stealing money seems to be on the cards but it's wider repercussions are a really high-risk trade. A trade with huge duration. Any country with assets held by the West would have to reconsider what they're holding if the US can steal them at any time.
Added to the mix is Macron, and others, suggesting NATO troops on the ground in Ukraine. A suggestion that has clearly enraged Putin, setting back any chance of a peaceful settlement, which Putin seems to want before Trump gets into power again.
The Wall Street Journal stoking the flames and passing the buck
Will the EU Step Up to Seize Russian Reserves? [WSJ]
Shares of NYCB falls 25% after bank discloses ‘internal controls’ issue, CEO change [CNBC]
New York Community Bank stock, $NYCB, crashes 20%+ after reporting "material weakness in internal controls."
The weakness is reportedly related to loan review resulting from ineffective oversight and risk assessment.
NYCB is the same bank that acquired the collapse Signature Bank during the regional bank crisis.
This comes just weeks after the bank posted an unexpected $260 million loss in Q4 2023.
The stock is now at its lowest level since 1997.
“As part of management’s assessment of the Company’s internal controls, management identified material weaknesses in the Company’s internal controls related to internal loan review, resulting from ineffective oversight, risk assessment and monitoring activities.
New York Community Bancorp Monthly
With the Bank Term Funding Program ending in 2 weeks, NYCB will have to do their paperwork real fast.
In any case I expect JP Morgan or similar is already agrees terms of a rescue.
The CRE market is now in freefall in the US and China, with banks around the world being impacted. Look for (yet) another rescue plan from the FED.
Harvard’s Endowment Could Deliver Poor Returns for the Second Year in a Row [Harvard Crimson]
Chinese developer Country Garden faces winding-up petition from creditor [FT]
Deutsche Bank to file liquidation suit against Chinese developer Shimao, sources sa [Reuters]
China Stocks See Largest Weekly Outflow Since October, Says BofA [Bloomberg]
China props up renminbi ahead of leadership summit in March [FT}
Inflation globally continues to be the market focus, with only the US seeming to prosper and it's questionable at that. An atrocious durable goods report suggest consumers are really feeling the pinch. Walmart reports good sales numbers in the last quarter, fuelled by new customers who used to buy at more expensive retailers. GDP remains good and CPI seems to have bottomed.
Fed's Bowman says she will stay 'cautious' on monetary policy [Reuters]
House GOP’s budget ‘poison pills’ could force spending cuts, rattle economy [CNBC]
JPMorgan warns investors should brace for 1970s-style 'stagflation' [Fox News]
US Durable Goods January 2024
US PCE Q4 2024
US Core PCE January 2024
Japan
Japan is still desperate for inflation
Japan CPI January
UK
BOE May Sell Whole QE Portfolio in Policy Divergence From US Fed [Bloomberg]
Germany
Germany CPI February 2024
EU CPI February 2024
Following massive spikes in stock markets, here comes Bitcoin and Gold.
Despite rates being high, so is liquidity - increasing money supply, winding down of the Reverse Repo Facility ( FED not mopping up the excess cash created over COVID ). Irresponsible fiscal spending, debt jubilees for students etc.
Central banks are juicing the system and the bubbles are getting bigger.
Let's see how this plays out.
Bitcoin Daily
Gold Daily
Australia Monthly CPI Indicator YoY January 2024
Chalmers warns over weak economic growth [AFR]
Wage growth drives inflation, average pay tops $100k [AFR]
Office values plunge as CBD market bottoms [AFR]
Decision day for the EU and Nonfarm Payroll in the US are the highlights for next week