FURTHER FURTHER READING
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It’s probably too early to say concretely that the great yen short of Abenomics has turned into the widowmaker of all widowmakers.
But evidence in favour of such a suggestion is certainly mounting by the day.
We present some examples from the commentary space… Read more
As we noted, it represents the market’s reconnection with disinflationary reality. The smoke and mirrors are fading. What is worrying, however, is that a move of this size has been prompted by simple talk of tapering. If that’s what tapering does, what will the first hint of a proper QE exit inspire?
As a result, it’s unlikely that an outright QE exit is viable at this stage. The deflationary consequences (which include the chances of a major market-sell off) would arguably be too large. Given that let’s analyse what the move in real yields really signifies. Read more
Live markets commentary from FT.com
RBS shares tumble as Hester heads for exit || Record crops to push grain prices lower || Prada slides on slower quarterly profit growth || WTI falls as World Bank cuts outlook || Yen’s rise through Y95 hits Japanese shares hard || The EU abandons data-privacy safeguards Read more
By now, everyone knows Tuesday was a big day for the EM bond market. But has the market really taken stock of how ‘bad’ things are?
Bloomberg reports on Thursday that this is probably the biggest drop in creditworthiness for emerging-market borrowers since the credit crisis started. Worse still, it is deepening. This they say is because speculation is intensifying (no-doubt among the buy-side) that central banks will scale back record stimulus**. Read more
Nope not in that direction:
Up towards 18,000 in fact from it’s current bear-wrought 12,500 or so. That’s Nomura’s bet at least and good luck to them. A taste: Read more
Fiscalists vs market monetarists is a breakout skirmish between rivalrous, unnatural allies whose common antagonists are in retreat.
But on the post-crisis intellectual battlefield, they have mostly been on the same side — or at least stayed out of each other’s way. Read more
COMMENT AND CURIOS
– “The Purest Political Economist of Them All: Albert Hirschman’s Legacy”, by Dan Drezner. Read more