Credit Writedowns

Fitch, the ratings agency, has reversed itself on Canada. It now believes that the housing market there is poised for only modest declines at worst. Previously, Fitch had said that Canada’s housing market was well overpriced and that a…

In yesterday’s commentary, I wrote that China was attempting to rebalance its economy, which ultimately means a slowdown in its use of commodities. This has hit the commodities currencies particularly hard, with the Australian Dollar down…

Some of the largest natural resource exporters with floating exchange rates have seen their currencies come under significant pressure over the past year.

News links for 21 Jan 2014

China is a big wildcard for 2014. Growth slowed last year to a 14-year low. It isn’t yet clear if the trend will continue and what China’s leadership will do if growth does slow further.

News links for 20 January 2014

While JPMorgan's Loan to deposit ratio is particularly low, the bank is by no means unique. LTD in the US is at the lows not seen in decades. On an absolute basis the gap between deposits and loans is now at some $2.4 trillion and growing.…

Here are seven themes Marc Chandler sees dominating the investment Climate from Fed tapering, to ECB reaction to disinflation to Australian and Canadian Dollars remaining out of favour.

The ECB's dovish forward guidance is clear and does not lack the doubts seen in the UK, or to a less extent, the US. However, in an usual occurrence overnight rates (EONIA) has moved above the refi rate (25 bp), when it should be trading…

This past holiday sales season was weak for a number of retailers in the US. But, discounting was the culprit rather than poor demand by consumers. I see retail sales holding up but a shake out in retail is sure to come as the deflationary…