Closing Wrap - Tuesday 14.01
Headlines
  • China Tariffs To Stay Put Until After US Election Despite Deal
  • Hedge Funds Could Make One Potential Fed Repo-Market Fix Hard To Stomach
  • Fed’s George Says Keep Rates Steady ‘For Now’ To Assess Economy
  • House To Vote On Impeachment Resolution On Wednesday, Lawmakers Say
  • Trump Impeachment Trial Could Start Next Tuesday, McConnell Says
  • US, Japan And EU Target China With WTO Rule Change Proposal
  • ECB’s Mersch: Stabilizing Eurozone Growth Vindicates ECB
  • ECB’s Villeroy: We Can Practically Rule Out US Or EU Recession
  • ECB’s Schnabel: Higher Interest Rates Currently Not Appropriate
  • OPEC+ May Decide To Postpone Meeting From March To June
  • EIA Raises 2020 Oil Price Forecasts, Sees US Crude Output Records In 2020 & 2021
  • US Consumer Prices Gain Slightly; Underlying Inflation Tame
  • Disney+ Mobile App Downloads Hit Nearly 41M, Study Says
  • Google To Phase Out Support For Third-Party Cookies In Chrome In 2-Yrs
Commentary
Interest Piqued For Minutes From First ECB Rate Meeting Of Lagarde Era

European Central Bank monetary policy was unchanged in December, but the account of the meeting to decide that may reveal how rate-setters work together with new president Christine Lagarde and how they view recent signs of Eurozone strength and plans for an upcoming strategic review.

 

Last month, during her first post-rate decision press conference as head of the ECB, Lagarde said she would use her “own style” to communicate the central bank’s policies, so the market will be keen on indications of any such shift contained in the minutes of December’s rate decision meeting.

 

Lagarde replaced Mario Draghi as president in November. (LiveSquawk – Continue Reading)

China Tariffs To Stay Put Until After US Election Despite Deal

Existing tariffs on billions of dollars of Chinese goods coming into the U.S. are likely to stay in place until after the American presidential election, and any move to reduce them will hinge on Beijing’s compliance with the terms of a phase-one trade accord, people familiar with the matter said, Bloomberg News reports. (Bloomberg – Continue Reading)

Trump’s Defense A Work In Progress; Pelosi Sets Wednesday Vote

The House will vote Wednesday to send articles of impeachment against Donald Trump to the Senate for a trial that’s expected to begin early next week, but the president has yet to settle on either his defense strategy or the team that will represent him.

 

Trump has sent conflicting signals about key aspects of the Senate trial, including how long it should last and whether witnesses should testify. He is still considering whether to make additions to his defense team, which will be led by White House Counsel Pat Cipollone and his personal attorney Jay Sekulow, according to people familiar with the matter.

 

The process is about to begin moving quickly. Speaker Nancy Pelosi told House Democrats Tuesday that a vote to name the lawmakers who’ll present the impeachment case and formally transmit the articles to the Senate will be held on Wednesday. Republicans in the Senate said they expect arguments could be begin as soon as Jan. 21. (Bloomberg – Continue Reading)

Hedge Funds Could Make One Potential Fed Repo-Market Fix Hard To Stomach

One hurdle to a possible fix for recent volatility in the short-term cash markets: hedge funds.

 

Federal Reserve officials are considering a new tool to ease stresses in the market for Treasury repurchase agreements, or repos. Through the repo market, banks and hedge funds borrow cash overnight, while pledging safe securities such as government bonds as collateral. In September, an unexpected shortage of available cash to lend sparked a surge in the cost of repo-market borrowing, prompting the Fed to intervene for the first time since the financial crisis.

 

One potential solution is to lend cash directly to smaller banks, securities dealers and hedge funds through the repo market’s clearinghouse, the Fixed Income Clearing Corp., or FICC. (WSJ – Continue Reading)

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