GBP Markets News 

House buying inquiries at weakest since aftermath of Brexit vote

“The reported net balance for house sales fell to minus 15 per cent, also the lowest since July 2016” writes Ben Chu for independent.co.uk. The most recent Nationwide house price index reading pointed to an annual rise of just 2.1 per cent in August. Before last year’s referendum the Treasury projected that house prices in 2018 could be 10 to 18 per cent lower than otherwise in the event of a Leave vote.However, according to the latest Halifax house price index reading, average house prices rose at an annual pace…

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XTB Implementing Negative Balance Protection in Bid to Safeguard Clients

“Per the new changes, XTB will be applying negative balance protection on both trading platforms, xStation and MetaTrader” reports financemagnates.com. XTB (WSE:XTB) has taken new measures to protect its client base, implementing negative balance protection.Numerous educational programs, client insurance regimes, and negative balance protection measures have all helped create a more stable environment for FX and CFD traders. “We hope that this feature increases the security and comfort of our clients when trading on global financial markets,” reiterated Mr. Source: financemagnates.com Share This:

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Finance firms to keep hiring and investing despite lack of Brexit deal for the City

“Bankers and financiers are ramping up plans to hire workers and invest in growth, despite concerns that the UK has not yet arranged a Brexit deal for the industry” writes Tim Wallace for telegraph.co.uk. Employment edged down in the three months to September but the proportion of finance firms planning to increase their headcount in the coming quarter outweighed those planning to cut staff by a margin of 11pc.A net balance of 25pc want to spend more on training staff, matching the increase of the past three months, according to…

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News Regulators 

Dick Bove: The Fed’s ‘out of control’ balance sheet is a major threat

“By and large that is how the Fed’s balance sheet is constructed” writes Richard X for cnbc.com. If the Fed does not gain control of its balance sheet it will lose control of monetary policy.The reality is that the Federal Reserve cannot ignore the problems that its balance sheet represents for much longer.It cannot do so if its balance sheet is out of control.My view is that it would be regarded as an insolvent savings and loan institution with a terribly mismatched balance sheet that was headed for meaningful trouble. Source:…

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In sign of economy’s strength, Fed to start reducing $4.5 trillion balance sheet

“There was no guidebook for the Fed’s balance sheet to grow so large, and there’s no guidebook now on how to shrink it back down” reports washingtonpost.com. Reducing the massive balance sheet was not without risks.The U.S. economy keeps getting better, according to the central bank.”We do not plan on making adjustments to our balance sheet normalization program,” Yellen said, although she added the Fed would reassess if something dramatic happens to the economy or markets. Source: washingtonpost.com Share This:

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S&P 500, Dow end at records after Fed decision on balance sheet

“The S&P 500 and Dow Jones Industrial Average eked out marginal gains to end at records on Wednesday after the Federal Reserve outlined its plan to start reducing its massive balance sheet in October” writes Anora Mahmudova for marketwatch.com. As fully expected, policy makers made no change to interest rates, but said the Fed would start to shrink its $4.5 trillion balance sheet by $10 billion a month. Source: marketwatch.com Share This:

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Fed sets plans to reduce balance sheet after nine years of buildup

“In a unanimous and widely anticipated decision, the Fed said in October it will start reducing its $4.5 trillion balance sheet by $10 billion per month” writes D C for marketwatch.com. The Fed’s interest rate projections, known as the dot plot, still suggest an interest-rate hike in December and three more in 2018.The Federal Reserve on Wednesday announced that, for the first time in nine years, it will start reducing the size of its massive balance sheet.The Fed did reduce the median estimate of 2019 interest rates to 2.7% from…

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Gold slips in electronic trade as Fed announces details on balance sheet reduction

“Gold prices settled higher Wednesday but slipped in electronic trading after the U.S. Federal Reserve’s decision to keep interest rates unchanged” writes Markets Reporter for marketwatch.com. December gold GCZ7, -0.62% rose $5.80, or 0.4%, to settle at $1,316.40 an ounce, marking its first gain in four sessions.In electronic trading after the Fed statement, prices traded lower at $1,310.70.The central bank said it will taper its $4.5 trillion balance sheet by $10 billion per month, the first reduction in nine years. Meanwhile, the Fed’s interest rate projections, known as the dot…

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News Regulators 

Hedge fund titan Ray Dalio: If the Fed goes overboard on rates, watch out

“Dalio believes the Fed won’t unwind its $4.5 trillion balance sheet, or portfolio of assets, as quickly as current expectations” writes Matthew J for cnbc.com. CNBC’s Fed Survey of 42 Wall Streeters found that 76 percent believe the Fed will raise rates in December.Reducing the balance sheet is viewed as a slight negative for economic growth, a bit worse for stocks.When the gathering ends, central bankers are expected to announce the beginning of the unwinding of the balance sheet.There’s no obvious sign pointing to a big economic decline unless the…

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Fed Preview: a window to short the dollar and two other scenarios

“The Fed could balance its tightening of the balance sheet by removing the third rate hike from the dot-plot” writes Yohay’s Google Profile for forexcrunch.com. The Federal Reserve will begin reducing its $4.5 trillion balance sheet, in a very gradual manner.In this case, the odds for a rate hike in December would rise, and the dollar will follow.All this put some color on the dollar’s face and revived the chances of a rate hike. Source: forexcrunch.com Share This:

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