Bank of New York

Key Events In The Coming Week: Taxes, Inflation, Yellen, Draghi, Kuroda And Brexit

This week’s economic calendar features several key data releases and Fedspeak. The main data release in US include: CPI inflation, retail sales, industrial production, housing data and monthly budget statement.Away from the data the ECB’s Draghi, Fed’s Yellen, BoE’s Carney and BoJ’s Kuroda are all scheduled to participate on a policy panel hosted by the ECB.

Venezuela Officially Declared In Default

"The Issuer’s failure to pay interest on the Notes when due on October 10, 2017 constitutes a Default under the Indenture. The Paying Agent has further notified the Trustee that the interest payment was not received by November 9, 2017. "

Frontrunning: November 6

  • Gunman kills 26 in Texas (Reuters)
  • Trump Urges Japan to Buy More U.S. Military Equipment (WSJ)
  • Ex-Catalan leader granted freedom to campaign for independence (Reuters)
  • House begins revising Republican tax bill to quell dissent (Reuters)
  • Why the Next Four Days Will Be Crucial for the GOP Tax Bill (BBG)
  • Broadcom offers to buy mobile chipmaker Qualcomm for $103 billion (Reuters)

It's Official: NY Fed President Bill Dudley To Retire Mid-2018

The New York Fed today confirmed a weekend report that president Bill Dudley intends to retire from his position in mid-2018 to ensure that a successor is in place well before the end of his term. Dudley’s term ends in January of 2019 when he reaches the 10 year policy-limit in the role.

Global Stocks Drift Lower As US Futures Rebound From Overnight Scare, Oil At 2 Year Highs

Following an early shaky start, which saw the Hang Seng tumble as much as 1.6% driven by weakness in financials and real estate names following the latest warning by PBOC governor Zhou about "sudden, complex, hidden, contagious, hazardous" risks In markets and a decline in local real estate prices, and pressure global risk, US equity futures have recouped all losses and are back to unchanged on monday morning.

Low Interest Rates Subsidize Wealthy Households

The above thought experiment illustrates that central bank interest rate cuts are essentially tax cuts for the rich. To be consistent, those who oppose tax cuts for the rich should also stand against monetary policy that disproportionately benefits the richest households as well.

Goldman Interviews Former Head Of The Plunge Protection Team

"Purchasing a wider set of assets—as do some other central banks—might enable the Fed to have a larger effect on financial conditions and promote faster recoveries. But it would also involve putting more taxpayer money at risk and having an imprint on a wider set of risk premiums in the market."