And we're back!
Started by Tamas, May 25, 2022, 05:15:04 AM
QuoteThe Swiss National Bank has offered UBS UBS -5.50%decrease; red down pointing triangle Group AG around $100 billion in liquidity to help it take on the operations of Credit Suisse CS -6.94%decrease; red down pointing triangle Group AG, according to the people familiar with the matter. Details of the liquidity offer couldn't be learned but are part of the talks to engineer a takeover of Credit Suisse.
QuoteCentral banks have moved globally to keep credit flowing after an unsettled period in the US banking sector and the Credit Suisse merger.Six central banks, including the Bank of England, announced they would boost the flow of US dollars through the global financial system.On Sunday the struggling Credit Suisse was taken over by UBS in a Swiss government-backed deal.The US dollar liquidity "swap line" arrangement will run from Monday.In a statement the Bank of England, Bank of Japan, Bank of Canada, the European Central Bank, US Federal Reserve and Swiss National Bank launched the co-ordinated action to "enhance the provision of liquidity".
QuoteIt Turns Out That JPMorgan Bought the Nickel That Turned Out to Be StonesJPMorgan Chase owned bags of material kept in a Dutch warehouse that were supposed to contain nickel but turned out to be full of stones, people familiar with the matter said.The London Metal Exchange said last week that sacks thought to hold 54 metric tons of nickel in an unnamed warehouse had failed to comply with its standards. The bags were in a shed in the Dutch port city of Rotterdam, The Wall Street Journal and other outlets reported. The problem: They contained stones instead of a silvery metal used in steel and electric-vehicle batteries.The LME didn't disclose the name of the company that believed itself to be the owner of nickel briquettes valued at $1.3 million at current prices. The firm was JPMorgan, according to the people, some of whom said the bank first bought the material several years ago.The company that controls the warehouse, sprawling logistics firm Access World Group, was owned by miner and trader Glencore PLC at the time. In a statement, Access World said it is inspecting "warranted bags of nickel briquettes at all locations" and that it believes the issue to be "an isolated case and specific to one warehouse in Rotterdam."Access World, rather than JPMorgan, is likely to face pressure to foot the bill because it is responsible for checking metal on entry and keeping it safe while it is in the shed. The LME has said it is working with the operator to find out what went wrong.Wall Street banks aren't as active in physical commodity markets as they were a decade ago, when companies such as Morgan Stanley and Goldman Sachs Group shipped oil on tankers, stuffed metal into warehouses and shuttled sugar between continents. New regulations brought in after the 2008 financial crisis and a stretch of calm markets encouraged banks to pull back from trading commodities.Still, JPMorgan remains a big player in metals, trading copper, aluminum, zinc and others on the LME as well as precious metals like gold.JPMorgan was a major trading partner of China's Tsingshan Holding Group, and led discussions with other banks after a blowup in the metal giant's nickel trades spawned a crisis on the LME last year.
Quote from: Sheilbh on March 19, 2023, 12:33:46 PMIt seems particularly weird given that I've heard of loads of central bankers writing papers and presenting on the challenges of unwinding QE, its impact on liquidity, the risks etc - which seems to be exactly what's playing out.
Quote from: HisMajestyBOB on March 22, 2023, 05:43:03 AMWell if everyone is on an adjustable rate mortgage, then the CPI needs to exclude mortgages otherwise every rate hike will result in higher CPI via higher mortgages, leading to higher interest rates, etc.So maybe everyone should refinance to a 30 year fixed.
Quote from: Tamas on March 22, 2023, 04:01:27 AMUK CPI (which omits rise in inconsequential things like mortgage payments and such) came in somewhat higher than last month at 10.4%So what gives? Blip on the road down or a sign that 4% base rates will not stop 10%+ inflation?
Quote from: Sheilbh on March 22, 2023, 06:42:26 AMSome of it looks blip-y. Services inflation fell by more than expeted in January but has now bounced back to where it was expected to be in February. Some, less so - food inflation particularly.
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