Wednesday, 28 January 2015

Financial Orbit wrap 28/01/15

Five sentences or graphics which sum up the Financial Orbit output over the last 24 hours across the website, twitter account and anything else thought about...

Lots happening today - away from the Twitter feed and website posting too.  Here are some highlights:

1. FX volatility – far too high for less than a month into the year...

2. Meanwhile the Chinese yuan mid-point fix was at 6.11282.... diversion at 1.9%, which is a record (PBOC limit is set at 2%) even whilst the currency was rising up the SWIFT tables:

3. Favourite company insights?  In Europe you also have to look at what SKF are saying...and basically it is (outside Asia) a bit neutral...

4. Far too many numbers in the US...but did you see what the Fed said?  Here's a nice summary from Fast FT:
Right at the top, the Fed's policy setting committee notes that economic activity "has been expanding at a solid pace", an improvement from its earlier view that growth was "moderate". Job gains are now "strong" as opposed to "solid", take that to mean what you may.
The Federal Open Market Committee also noted it would look to "international developments" when determining when to lift rates.
It is that latter quote which really interests me...

5. As for a general volatility update, here are a few headlines which interest me over recent hours:

If Syriza really forcing out Bank of Greece Governor Stournaras then Grexit just took another step closer.

Greek Bank Shares Tumbling; Piraeus -30%, NBG -28%, Alpha -23%, Eurobank -22%

Brazil's 2015 Real GDP Forecast Cut to -0.5% by Goldman Sachs

RBNZ say NZD is still too high, sees low inflation through 2015, will be below target; construction and households strong points
China News: most Chinese provinces lower 2015 growth target --BBG

And people wonder why the VIX has reattained 20! 

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