Gloria ai Bastardi - Cap. 1
- Creatore Discussione Dogtown
- Data di Inizio
- Stato
Dogtown
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CHINA: /RISK: JP Morgan strategists note that "The UK, US and Japanese banking systems have the highest exposures to China in absolute amounts, 40% of which reflects local operations in China." And "Relative to the size of their total foreign claims, the banking systems most exposed to China are those of Korea, Taiwan, UK and Australia," they say. JPM points out that the bulk of the $1.1trn in claims that foreign banks have on Chinese entities "is related to the Chinese financial sector" and therefore unlikely to result in much FX risk, mainly "because banks are in general reluctant to take FX risk." About $500bn represents claims to the non-bank private sector (i.e. households and corporates) and roughly half of that "reflects local operations in China, mostly by UK, Japanese and US banks, which entail little fx risk," they say. "In other words, only a fraction, around a third, of total foreign bank claims on China entail fx risk," the strategists say.
Dogtown
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FED: Atlanta Fed Pres Lockhart (FOMC voter this yr, voted to stand pat in Sept) downplays China, says US jobs are better and wages rising, so he supports a rate hike this yr. At Sept FOMC "I put most of the decision weight on prudent risk management around recent and current market volatility. As things settle down, I will be ready for the first policy move on the path to a more normal interest-rate environment. I am confident the much-used phrase "later this year" is still operative. Once normalization is under way, I anticipate a gradual pace of rate increases" even in a weak global environment. He says a month ago, "uncertainties loomed larger, market volatility rose, and, from a policymaker's perspective, risks to the domestic economy ratcheted up a little." This probably will not have large first-order impacts on US growth.
Dogtown
Forever Ultras Ghetto
FED: Atlanta Fed Pres Lockhart (FOMC voter this yr, voted to stand pat in Sept) downplays China, says US jobs are better and wages rising, so he supports a rate hike this yr. At Sept FOMC "I put most of the decision weight on prudent risk management around recent and current market volatility. As things settle down, I will be ready for the first policy move on the path to a more normal interest-rate environment. I am confident the much-used phrase "later this year" is still operative. Once normalization is under way, I anticipate a gradual pace of rate increases" even in a weak global environment. He says a month ago, "uncertainties loomed larger, market volatility rose, and, from a policymaker's perspective, risks to the domestic economy ratcheted up a little." This probably will not have large first-order impacts on US growth.
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