FT markets round-up: “A big day for central bank announcements saw equity markets take divergent paths and the yen tumble against the dollar and the euro, as the markets weighed up the outlook for global monetary policy. The Bank of Japan grabbed the headlines as it exceeded market expectations with the scale and pace of expansion to its asset purchase programme. The BoJ’s moves helped push Japanese equities sharply higher, with the Nikkei 225 Average jumping 2.2 per cent. The dollar, meanwhile, rose 3.4 per cent against the yen, and the euro gained more than 4 per cent against the Japanese currency.” (Financial Times) Read more
The following is a response from Peter Stella, former chief of monetary and foreign exchange operations at the IMF on the subject of reserve requirements and whether or not they pose an inflationary or credit expansion threat.
The note was penned as a response to an article by Jeremy Siegel, the Russell E. Palmer Professor of Finance at the Wharton School of the University of Pennsylvania, in the FT calling for the Fed to raise reserve requirements. Read more
Gloves off from Kuroda and everyone is very excited…
For those who need a rundown of what the BoJ actually did, here’s a summary from Nomura: Read more
This is the latest Bitcoin price chart:
Live markets commentary from FT.com
“A new phase of monetary easing” in Japan || Bitcoin as fiat, and the story so far || Bundesbank investigating Deutsche Bank || QE3 could start tapering this summer, says San Francisco Fed president John Williams || Barclays should lower warped pay levels, says review || Healthcare deal in Arkansas || Goldman & JPM gain from rivals || KFC accepts mobile payments || Angry Birds sales increase || Ubiquisys acquired by Cisco Read more
Elsewhere on Thursday,
– Those ‘death of peak oil’ claims not so impressive.
– When US currency was beautiful… Read more
At least, markets are sure it’s a new dawn for Japanese monetary policy. And yeah, we know: this sort of initial euphoria has fizzled out before — but the new Bank of Japan governors appear to have actually come through with the goods:
Click screenshot for the statement. More to come soon, and in the meantime, see this from the FT’s Ben McLannahan: Read more
BoJ announces new strategy || Bundesbank investigating Deutsche Bank super senior marks || BoE expected to hold today || RSA facing questions over Deloitte work, fees || Massive data dump on offshore BVI companies || Corporate bond trading goes electronic Read more
A quick update to our latest Bitcoin post, since it seems that some have an issue with the virtual unit being described as a fiat currency.
So here’s our rationale for calling it that.
The term fiat is foremost used in the post to differentiate a faith-based non-collateral-backed currency system from a collateral-backed currency system. Bitcoin, however, is described as the “fiat of all fiats” due to its decentralised fiat nature and because its value lies in the mutual interests of its users rather than a collateral pool. It is, in that sense, a fiat that supersedes all other fiats, because it depends on an algorithmic self-dictated “law” for authority. Read more