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Livesquawk - European Briefing - Friday 14.01
European Briefing - Friday 14.01
Headlines
  • Fed Officials Nod To March Hike As Inflation Battle Grows
  • Biden Will Nominate Raskin As Top Fed Banking Regulator
  • Senate Block Sanctions To Stopping Nord Stream Pipeline
  • US Push Europe Over Sanctions With Wary Eyes On Putin
  • China Exports Hit Fresh Record On Strong Global Demand
  • BoJ Debate Messaging On Eventual Hike As Inflation Rises
  • Japan’s Weighing Wholesale Prices Rise For Tenth Month
  • N Korea Vows Stronger Action To US Sanctions Over Tests
  • Thirty Tory MPs Submit No Confidence Letters In Johnson
  • Number 10 Lockdown Parties Not Criminal, Inquiry To Say
  • UK ForMin Truss Target NI Protocol Deal By End Of March
  • Tesla Delay Initial Production Of Cybertruck To Early 2023
Commentary
Treasury Market Stages Reprieve Rally As Yield Surge Pull Cash

After the relentless bout of selling that kicked off the year, buyers of longer-maturity Treasuries are swooping back in, extending a reprieve to a market rattled by surging inflation and a move toward tighter monetary policy by the Federal Reserve.

 

Benchmark 10-year yields have stepped back from their highest level since January 2020, spurred in part by oversees investors drawn in by the spike during the first week of the year. A $22 billion auction of 30-year Treasuries on Thursday cleared with virtually no discount to prevailing yields.

 

The steadying marks a welcome, if potentially temporary, break from what had been a brutal start to the year for Treasuries due to growing conviction the Fed is poised to start raising rates in March and begin shrinking its $8.8 trillion balance sheet in the second half. (BBG - Continue Reading)

Raskin Pick For Fed Regulation Chief Puts Wall Street On Notice

US President Joe Biden's decision to pick Sarah Bloom Raskin to lead regulation and supervision at the Federal Reserve will put a progressive in the most powerful role overseeing Wall Street's biggest banks.

 

Raskin, a former Fed governor and Treasury official under former President Barack Obama, will replace Randal Quarles who was appointed the Fed's vice chair for supervision by Republican former President Donald Trump in 2017, according to a source familiar with the matter.

 

Raskin is expected to take a much tougher stance on Wall Street than Quarles, who riled progressives with an industry-friendly approach that included easing several rules introduced following the 2007-2009 global financial crisis. (RTRS - Continue Reading)

What To Watch In Bank Earnings, From Rates To Omicron Impact

As the pandemic drags on, what does the new normal for banks look like? Investors are about to get some answers. Big US banks unveil fourth-quarter results starting later this week, with JPMorgan Chase., Wells Fargo and Citigroup slated to report Friday.

 

Banks in the S&P 500 are expected to report total profits of about $31.2 billion for the fourth quarter, according to FactSet. That would mark a 2.4% decline from a year earlier.

 

Like other businesses, banks are being forced to adapt to the Omicron economy. Consumer spending flagged toward the end of the year as the Covid-19 variant emerged. Inflation hit a four-decade high in December. (WSJ - Continue Reading)

Files & Links
DATA
APAC GOVERNMENT/CENTRAL BANKS
EUROPEAN/AMERICAS GOVERNMENT/CENTRAL BANKS
FX
FIXED INCOME
COMMODITIES/ENERGY
APAC EQUITIES
EUROPEAN/US EQUITIES