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Livesquawk - Closing Wrap - Wednesday 14.07
Closing Wrap - Wednesday 14.07
Headlines
  • UAE-Saudis Resolve Quota Deadlock, Iraq Seeks Upward Revision To Its Baseline
  • BoC Maintains Policy Rate And Forward Guidance, Adjusts QE Program
  • Senior Dems Prepare Medicare, Climate Initiatives As Well As Tax Hikes On Wealthy
  • Powell Stays Focused On Jobs Recovery, Feels Heat On Inflation Front
  • US To Extend Trump-Era Halt To Economic Dialogue With China
  • BoE’s Ramsden: BoE Might Discuss Reining In Stimulus Earlier Than Thought
  • ECB Clears Next Stage Of Digital Euro With Investigation Phase
  • Bank Of America’s Profit More Than Doubles, But Revenue Takes A Hit
  • Citigroup’s Underdogs Save Quarter As Bond, Card Engines Lag
  • Wells Fargo Emerges From Pandemic Slump
  • Delta Air Swings To Profit Thanks To US Aid, Leisure Travel Bounce
Commentary
BoC Tapers QE By A Further CAD 1bln

The Bank of Canada’s followed through on expectations and kept its three main rates unchanged and announced a further reduction to its weekly bond buys.

 

The governing council held its target for the overnight rate at the effective lower bound of 0.25%, with the bank rate at 0.5% and the deposit rate at 0.25%. The bank tweaked the target pace of its quantitative easing (QE) programme from CAD 3bln down to CAD 2bln per week. It said the adjustment reflects continued progress towards recovery and the bank’s increased confidence in the strength of the Canadian economic outlook. (LiveSquawk - Continue Reading)

UAE-Saudi Arabia Resolve Quota Deadlock

The United Arab Emirates (UAE) and Saudi Arabia on Wednesday appear to have resolved a dispute over a demand by the UAE to raise its production quota that could pave the way for an extension of producer cooperation and enable substantial volumes of oil supply to come back to the market.

 

What happens next will depend, in large part, on the deliberations of a new, and yet-to-be announced, OPEC-plus ministerial meeting expected to take place this week ahead of the Islamic Eid on Jul. 19. The issue of the baseline change will also be discussed during the meeting by all members of the producer group.

 

That meeting is not guaranteed to result in an agreement as other countries could raise similar requests on the back of the UAE’s seeming success.

 

Any plan to raise output in August that has been on hold due to the quota disagreement could be difficult to achieve for many states, given the lead times needed to schedule cargo deliveries. (Energy Intel - Continue Reading)

PIMCO Sees Global Growth Moderating In 2022, Sustainable Issues Playing A Role

Global growth will moderate next year but remain at a strong pace, bond manager Pimco said on Wednesday, with a trend toward sustainable investing creating risks and opportunities in some sectors.

 

Pimco portfolio managers Erin Browne and Geraldine Sundstrom made the forecast in an asset-allocation report sent by a spokeswoman. The managers wrote they expect real gross domestic product in developed markets to grow 6% this year as economies emerge from the COVID-19 pandemic, and moderate to 3% in 2022.

 

"Pent-up demand, high levels of consumer saving, and healthy corporate leverage ratios create a runway for private-sector-led growth," they wrote, a background that should make growth-oriented assets attractive.

 

Slower vaccination rates in emerging markets have delayed their recovery, the report said, setting their GDP to grow at 3.5% this year and accelerate to 5% in 2022. (Reuters - Continue Reading)

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