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Market turmoil: Wall Street down after FTSE 100 hits three-year low - business live | Market turmoil: Wall Street down after FTSE 100 hits three-year low - business live |
(35 minutes later) | |
3.48pm GMT | |
15:48 | |
The FTSE 100’s fall to three year lows is an overreaction, according to the Centre for Economics and Business Research. | |
The research group said it had been warning about the weakness of the global economy for some time, and said in particular that the US Federal Reserve’s rate rise in December was premature. But the current market falls were overdone. Scott Corfe, director and head of macroeconomics at Cebr, said: | |
Markets have somewhat belatedly woken up to the underlying state of economic reality. We will be in a world of sluggish growth, loose monetary policy and low commodity prices for some time. | |
As usual with the markets, it is either feast or famine. Our best view of the current circumstances is that, despite all the risks, we should avoid another financial crisis. In particular, Chinese policymakers have sufficient fiscal and monetary ammunition to revitalise the world’s second largest economy. More quantitative easing in the Eurozone, and possibly the US, should also help. | |
So the most likely scenario is modest growth in the world economy this year. When the reality of this is understood and if there is further monetary relaxation, it is quite likely that the markets will turn. They tend to be a useful lagging indicator. | |
3.29pm GMT | |
15:29 | |
Here’s a quick snapshot of how top banks have performed since the start of the year (spoilers: badly), courtesy of David Buik of Panmure Gordon: | |
3.25pm GMT | |
15:25 | |
Some positive news on US jobs. | |
The number of job openings increased to 5.6m in December, up from 5.43m in the previous months and compared to expectations of a dip to 5.41m. | |
The quits rate - which the US Federal Reserve considers a sign of worker confidence in the jobs market - rose to 3.1m. | |
Whoa. BIG jump in quits in December. +196K. #JOLTS pic.twitter.com/xkeTD6tUt5 | |
Those figures seemed to calm Wall Street for a moment, with the Dow Jones Industrial Average moving into positive territory before slipping back again. | |
3.01pm GMT | 3.01pm GMT |
15:01 | 15:01 |
Here are the moves in the Dow Jones Industrial Average: | Here are the moves in the Dow Jones Industrial Average: |
2.41pm GMT | 2.41pm GMT |
14:41 | 14:41 |
Wall Street is stabilising a little, but the main indices are still down. | Wall Street is stabilising a little, but the main indices are still down. |
2.34pm GMT | 2.34pm GMT |
14:34 | 14:34 |
Wall Street opens in the red | Wall Street opens in the red |
The New York opening bell is ringing, getting trading underway on Wall Street. | The New York opening bell is ringing, getting trading underway on Wall Street. |
And shares are dropping. | And shares are dropping. |
The Dow Jones has lost 137 points in an early bout of selling, sending the index down 0.8% to 15,893. | The Dow Jones has lost 137 points in an early bout of selling, sending the index down 0.8% to 15,893. |
The S&P 500 index (the broadest measure of US shares) has lost 0.75% | The S&P 500 index (the broadest measure of US shares) has lost 0.75% |
And the Nasdaq index (heavy with tech stocks) is down 1.39% | And the Nasdaq index (heavy with tech stocks) is down 1.39% |
Stocks open sharply lower amid growth concerns https://t.co/PYSu7t2FC4 pic.twitter.com/7zXr6tUXdr | Stocks open sharply lower amid growth concerns https://t.co/PYSu7t2FC4 pic.twitter.com/7zXr6tUXdr |
2.28pm GMT | 2.28pm GMT |
14:28 | 14:28 |
The European selloff is gathering speed, as investors brace for Wall Street to open any moment... | The European selloff is gathering speed, as investors brace for Wall Street to open any moment... |
The FTSE 100 is now down 89 points at 5600, which by my reckoning is the lowest since July 2012 | The FTSE 100 is now down 89 points at 5600, which by my reckoning is the lowest since July 2012 |
2.18pm GMT | 2.18pm GMT |
14:18 | 14:18 |
German finance minister: 'No concerns' over Deutsche Bank | German finance minister: 'No concerns' over Deutsche Bank |
Germany finance minister, Wolfgang Schäuble, has just weighed in, telling Bloomberg TV that he has ‘no concerns’ about Deutsche Bank. | Germany finance minister, Wolfgang Schäuble, has just weighed in, telling Bloomberg TV that he has ‘no concerns’ about Deutsche Bank. |
That’s the most senior intervention yet, coming shortly after CEO John Cryan told staff the bank “remains absolutely rock-solid”. | That’s the most senior intervention yet, coming shortly after CEO John Cryan told staff the bank “remains absolutely rock-solid”. |
Here’s the details: | Here’s the details: |
German finance minister Wolfgang Schäuble said he isn’t worried about Deutsche Bank, amid rising investor concern over the bank’s finances. | German finance minister Wolfgang Schäuble said he isn’t worried about Deutsche Bank, amid rising investor concern over the bank’s finances. |
“I have no concerns about Deutsche Bank,” he told Bloomberg Television after a press conference in Paris. | “I have no concerns about Deutsche Bank,” he told Bloomberg Television after a press conference in Paris. |
German Finance Minister Schaeuble "No concerns over #DeutscheBank" > The dreaded vote of confidence. | German Finance Minister Schaeuble "No concerns over #DeutscheBank" > The dreaded vote of confidence. |
Schäuble was attending a joint meeting of French and German finance ministers and central bank chiefs in Paris. | Schäuble was attending a joint meeting of French and German finance ministers and central bank chiefs in Paris. |
Updated | Updated |
at 2.26pm GMT | at 2.26pm GMT |
2.11pm GMT | 2.11pm GMT |
14:11 | 14:11 |
Make that 5%..... | Make that 5%..... |
As we flagged up this morning, Deutsche Bank is one of several banks who is now trading significantly below its book value -- what its portfolio of assets, liabilities, capital reserves, etc is actually worth. | As we flagged up this morning, Deutsche Bank is one of several banks who is now trading significantly below its book value -- what its portfolio of assets, liabilities, capital reserves, etc is actually worth. |
1.53pm GMT | 1.53pm GMT |
13:53 | 13:53 |
Deutsche Bank’s shares have now lost another 3.5%, hitting €13.30. | Deutsche Bank’s shares have now lost another 3.5%, hitting €13.30. |
That’s just below the lowpoint set in early 2009, after Lehman Brothers failed, and is the lowest since at least 1992 (my data doesn’t go back any further). | That’s just below the lowpoint set in early 2009, after Lehman Brothers failed, and is the lowest since at least 1992 (my data doesn’t go back any further). |
Deutsche Bank just dropped below its 2009 low pic.twitter.com/RCiHa89Qb7 | Deutsche Bank just dropped below its 2009 low pic.twitter.com/RCiHa89Qb7 |
1.43pm GMT | 1.43pm GMT |
13:43 | 13:43 |
Wall Street is still expected to open in the red, at 9.30am New York time (2.30pm GMT). | Wall Street is still expected to open in the red, at 9.30am New York time (2.30pm GMT). |
According to IG, the Dow will shed around 150 points at the open, a drop of 0.9%. | According to IG, the Dow will shed around 150 points at the open, a drop of 0.9%. |
They also predict that the VIX “fear” index, which tracks volatility, will jump by over 4%. That shows rising nervousness, although not a full-blown panic. | They also predict that the VIX “fear” index, which tracks volatility, will jump by over 4%. That shows rising nervousness, although not a full-blown panic. |
Our US opening calls:#DOW 15886 -0.86%#SPX 1837.5 -0.84%#NDX 3923 -0.97%#VIX 26.6 +4.65% | Our US opening calls:#DOW 15886 -0.86%#SPX 1837.5 -0.84%#NDX 3923 -0.97%#VIX 26.6 +4.65% |
1.30pm GMT | 1.30pm GMT |
13:30 | 13:30 |
European stocks are now languishing at their lowest level since September 2013, as the market rout continues to ripple across trading floors. | European stocks are now languishing at their lowest level since September 2013, as the market rout continues to ripple across trading floors. |
The benchmark FTSeurofirst 100 index has lost 1.9% today, driven down by banking shares. | The benchmark FTSeurofirst 100 index has lost 1.9% today, driven down by banking shares. |
The European banking index is down 3.4%, hit by fears over Italy’s financial sector, and by Deutsche Bank (now down 3% since that ‘rock solid’ memo). | The European banking index is down 3.4%, hit by fears over Italy’s financial sector, and by Deutsche Bank (now down 3% since that ‘rock solid’ memo). |
The selloff puts more pressure on the European Central Bank to announce new stimulus measures next month, as Reuters explains: | The selloff puts more pressure on the European Central Bank to announce new stimulus measures next month, as Reuters explains: |
The banking index was set for its biggest weekly losing streak since 1998 as investors fret over the threat to banks’ profitability and capital strength from compressed interest rate margins. | The banking index was set for its biggest weekly losing streak since 1998 as investors fret over the threat to banks’ profitability and capital strength from compressed interest rate margins. |
“The mood is clearly negative. What is needed is a strong and clear message from the ECB,” said Activtrades chief market analyst Carlo Alberto De Casa. | “The mood is clearly negative. What is needed is a strong and clear message from the ECB,” said Activtrades chief market analyst Carlo Alberto De Casa. |
1.01pm GMT | 1.01pm GMT |
13:01 | 13:01 |
FTSE 100 index hits lowest level since November 2012 | FTSE 100 index hits lowest level since November 2012 |
Shares in London are falling at a faster pace now, dragging the FTSE 100 down to its lowest intraday level since late 2012. | Shares in London are falling at a faster pace now, dragging the FTSE 100 down to its lowest intraday level since late 2012. |
The blue-chip index has shed 76 points now, as jitters over the global economy rear up again. | The blue-chip index has shed 76 points now, as jitters over the global economy rear up again. |
The FTSE is now down at 5,613 points, a drop of 1.3% today, smashing through the previous three-year low set last month (when London slumped into a Bear Market amid a wave of panic selling). | The FTSE is now down at 5,613 points, a drop of 1.3% today, smashing through the previous three-year low set last month (when London slumped into a Bear Market amid a wave of panic selling). |
The London market is being dragged down by mining shares, reflecting concerns about economic prospects: | The London market is being dragged down by mining shares, reflecting concerns about economic prospects: |
The biggest faller is Antofagasta, a major copper producer, followed by Anglo American - whose interests include iron ore, nickel, and coal. Their shares have been under pressure for months, as emerging market problems have hit demand for commodities. | The biggest faller is Antofagasta, a major copper producer, followed by Anglo American - whose interests include iron ore, nickel, and coal. Their shares have been under pressure for months, as emerging market problems have hit demand for commodities. |
Deutsche Bank’s claim that it is “rock-solid” doesn’t appear to have stabilised the markets. | Deutsche Bank’s claim that it is “rock-solid” doesn’t appear to have stabilised the markets. |
And the prospect of losses on Wall Street today is adding to the nervous feeling in the City, as traders reach for their metaphorical tin hats. | And the prospect of losses on Wall Street today is adding to the nervous feeling in the City, as traders reach for their metaphorical tin hats. |
Updated | Updated |
at 1.11pm GMT | at 1.11pm GMT |
12.49pm GMT | 12.49pm GMT |
12:49 | 12:49 |
Wall Street is expected to suffer fresh losses when trading begins in under two hours time. | Wall Street is expected to suffer fresh losses when trading begins in under two hours time. |
The futures market is predicting that the Dow will drop by 121 points, or 0.75%, with similar falls on the Nasdaq and S&P 500. | The futures market is predicting that the Dow will drop by 121 points, or 0.75%, with similar falls on the Nasdaq and S&P 500. |
FXTM Research Analyst Lukman Otunuga says investors have no appetitive for risk assets right now, given fears over a global recession. | FXTM Research Analyst Lukman Otunuga says investors have no appetitive for risk assets right now, given fears over a global recession. |
It must be understood that confidence towards the global economy remains strikingly low, while the bitter decline in oil prices has soured risk appetite consequently obstructing any solid recovery in the stock markets. | It must be understood that confidence towards the global economy remains strikingly low, while the bitter decline in oil prices has soured risk appetite consequently obstructing any solid recovery in the stock markets. |
Updated | Updated |
at 1.33pm GMT | at 1.33pm GMT |
12.47pm GMT | 12.47pm GMT |
12:47 | 12:47 |
I’m not sure Deutsche Bank should really be speculating about whether the market selloff has gone too far.... | I’m not sure Deutsche Bank should really be speculating about whether the market selloff has gone too far.... |
#DAX dropped below 9,000 points yesterday - worst start to a year ever: are the markets overreacting? #DrStephan | #DAX dropped below 9,000 points yesterday - worst start to a year ever: are the markets overreacting? #DrStephan |
12.28pm GMT | 12.28pm GMT |
12:28 | 12:28 |
Deutsche CEO: We're rock-solid | Deutsche CEO: We're rock-solid |
Deutsche Bank’s chief executive has issued an open letter to staff, in an attempt to calm fears over the company. | Deutsche Bank’s chief executive has issued an open letter to staff, in an attempt to calm fears over the company. |
John Cryan, who took over last year, told employees that Deutsche is “absolutely rock solid”. | John Cryan, who took over last year, told employees that Deutsche is “absolutely rock solid”. |
Last week, at one of our scheduled off-sites, the Management Board talked about progress on our strategy, and how recent market volatility and forecasts for slowing economic growth might impact our clients and us. Volatility in the fourth quarter impacted the earnings of most major banks, especially those in Europe, and clients may ask you about how the market-wide volatility is impacting Deutsche Bank. | Last week, at one of our scheduled off-sites, the Management Board talked about progress on our strategy, and how recent market volatility and forecasts for slowing economic growth might impact our clients and us. Volatility in the fourth quarter impacted the earnings of most major banks, especially those in Europe, and clients may ask you about how the market-wide volatility is impacting Deutsche Bank. |
You can tell them that Deutsche Bank remains absolutely rock-solid, given our strong capital and risk position. On Monday, we took advantage of this strength to reassure the market of our capacity and commitment to pay coupons to investors who hold our Additional Tier 1 capital. This type of instrument has been the subject of recent market concern. | You can tell them that Deutsche Bank remains absolutely rock-solid, given our strong capital and risk position. On Monday, we took advantage of this strength to reassure the market of our capacity and commitment to pay coupons to investors who hold our Additional Tier 1 capital. This type of instrument has been the subject of recent market concern. |
The market also expressed some concern about the adequacy of our legal provisions but I don’t share that concern. We will almost certainly have to add to our legal provisions this year but this is already accounted for in our financial plan. | The market also expressed some concern about the adequacy of our legal provisions but I don’t share that concern. We will almost certainly have to add to our legal provisions this year but this is already accounted for in our financial plan. |
Cryan also explains how he wants to turn Deutsche into “a trusted and successful bank”. | Cryan also explains how he wants to turn Deutsche into “a trusted and successful bank”. |
It has been involved in several scandals in recent years, and was fined for doing business with US-sanctioned countries like Iran and Syria. | It has been involved in several scandals in recent years, and was fined for doing business with US-sanctioned countries like Iran and Syria. |
The letter is online here. | The letter is online here. |
Cryan is obviously keen to douse concerns that Deutsche is struggling, after it reported a €6bn loss last October. | Cryan is obviously keen to douse concerns that Deutsche is struggling, after it reported a €6bn loss last October. |
Shares in Deutsche Bank are falling, though. After a solid start, they’re now down 1%, adding to yesterday’s 9% tumble. | Shares in Deutsche Bank are falling, though. After a solid start, they’re now down 1%, adding to yesterday’s 9% tumble. |
12.16pm GMT | 12.16pm GMT |
12:16 | 12:16 |
Mining companies are leading the selloff in London: | Mining companies are leading the selloff in London: |
Looks like the rally is over for now. The miners are getting smashed again pic.twitter.com/IHRwyLGXR6 | Looks like the rally is over for now. The miners are getting smashed again pic.twitter.com/IHRwyLGXR6 |
12.15pm GMT | 12.15pm GMT |
12:15 | 12:15 |
Heads-up, UK readers. The Economist Intelligence Unit has predicted that British interest rates will stay on hold until 2020! | Heads-up, UK readers. The Economist Intelligence Unit has predicted that British interest rates will stay on hold until 2020! |
The EIU argues that the UK recovery is much more vulnerable than previously thought. | The EIU argues that the UK recovery is much more vulnerable than previously thought. |
US economy will experience a downturn in 2019, they predict, while rising levels of indebtedness in China will pose another challenge. | US economy will experience a downturn in 2019, they predict, while rising levels of indebtedness in China will pose another challenge. |
And that means: | And that means: |
We no longer expect tightening to begin in the final quarter of this year. We now expect the Bank of England to hold off on tightening for the next four years at least. | We no longer expect tightening to begin in the final quarter of this year. We now expect the Bank of England to hold off on tightening for the next four years at least. |
That’s a pretty dovish forecast. Many economists reckon the first rate hike will come in 2017 or 2018. | That’s a pretty dovish forecast. Many economists reckon the first rate hike will come in 2017 or 2018. |
12.09pm GMT | 12.09pm GMT |
12:09 | 12:09 |
European markets hit fresh 16-month lows | European markets hit fresh 16-month lows |
European markets are falling deeper into the red, as lunchtime approaches. | European markets are falling deeper into the red, as lunchtime approaches. |
The Stoxx 600 index, which tracks the 600 largest companies across Europe, has dropped by 0.7% to a new 16-month low. | The Stoxx 600 index, which tracks the 600 largest companies across Europe, has dropped by 0.7% to a new 16-month low. |
Italy’s FTSE MIB has lost another 1.7%, the French CAC is down 1% and the German Dax has lost 0.6%, despite the forced-looking air of jollity among the fancy-dressed traders. | Italy’s FTSE MIB has lost another 1.7%, the French CAC is down 1% and the German Dax has lost 0.6%, despite the forced-looking air of jollity among the fancy-dressed traders. |
In London, the Footsie 100 is down 31 points or 0.5%, as traders continue to be depressed by the slump in Japan overnight. | In London, the Footsie 100 is down 31 points or 0.5%, as traders continue to be depressed by the slump in Japan overnight. |
11.48am GMT | 11.48am GMT |
11:48 | 11:48 |
Achilles Macris has just issued a response to the FCA’s decision to fine him £792,000 today for not being open over the London Whale case. | Achilles Macris has just issued a response to the FCA’s decision to fine him £792,000 today for not being open over the London Whale case. |
Macris claims it’s a “major climbdown” by the regulator, because the FCA has belatedly accepted that he never intentionally misled them. | Macris claims it’s a “major climbdown” by the regulator, because the FCA has belatedly accepted that he never intentionally misled them. |
He declares: | He declares: |
The Final Notice issued to JP Morgan by the FCA in 2013 wrongly and unfairly accused me of deliberately misleading the FSA. That Notice was released to the public without the FCA ever having properly heard my side of the story. Today the FCA has finally accepted that this allegation against me was utterly wrong. | The Final Notice issued to JP Morgan by the FCA in 2013 wrongly and unfairly accused me of deliberately misleading the FSA. That Notice was released to the public without the FCA ever having properly heard my side of the story. Today the FCA has finally accepted that this allegation against me was utterly wrong. |
Today’s result also vindicates my actions in bringing my third party reference seeking to have this allegation removed from the JP Morgan Notice. The FCA demonstrated a total disregard for my rights as an individual in its haste to issue the JP Morgan Notice and impose a large fine on the firm. | Today’s result also vindicates my actions in bringing my third party reference seeking to have this allegation removed from the JP Morgan Notice. The FCA demonstrated a total disregard for my rights as an individual in its haste to issue the JP Morgan Notice and impose a large fine on the firm. |
Macris is also taking his case to the Supreme Court, and wants the FCA to expunge that original Notice. | Macris is also taking his case to the Supreme Court, and wants the FCA to expunge that original Notice. |
The FCA has had several opportunities to admit its mistakes, but instead, at every turn, it has until now sought to defend and justify its position, wasting public funds. | The FCA has had several opportunities to admit its mistakes, but instead, at every turn, it has until now sought to defend and justify its position, wasting public funds. |
Updated | Updated |
at 11.52am GMT | at 11.52am GMT |
11.36am GMT | 11.36am GMT |
11:36 | 11:36 |
Yikes. The yield (interest rate) on Greek 10-year bonds has hit its highest level since last August. | Yikes. The yield (interest rate) on Greek 10-year bonds has hit its highest level since last August. |
Greek 10-year pic.twitter.com/m08KfhrfPT | Greek 10-year pic.twitter.com/m08KfhrfPT |
Some investors are losing faith in Greece’s ability to implement its third bailout and get debt relief. | Some investors are losing faith in Greece’s ability to implement its third bailout and get debt relief. |
Talks with its creditors over pensions reforms are bogged down, farmers are blockading roads to demonstrate against austerity, and exporters are suffering from the capital controls imposed last summer. | Talks with its creditors over pensions reforms are bogged down, farmers are blockading roads to demonstrate against austerity, and exporters are suffering from the capital controls imposed last summer. |
11.29am GMT | 11.29am GMT |
11:29 | 11:29 |
Although European markets are rather calmer than yesterday, there’s an awful lot of jitteriness around. | Although European markets are rather calmer than yesterday, there’s an awful lot of jitteriness around. |
Ironically, the Asian Lunar New Year appears to have actually made things worse, rather than just remove the volatile Chinese indices from the mix. | Ironically, the Asian Lunar New Year appears to have actually made things worse, rather than just remove the volatile Chinese indices from the mix. |
Kit Juckes, experienced currency strategist at French Bank Société Générale, explains: | Kit Juckes, experienced currency strategist at French Bank Société Générale, explains: |
The absence of many Asian market participants just adds to woeful liquidity conditions, while concerns about commodities, Chinese currency policy and global slowdown haven’t gone away at all. | The absence of many Asian market participants just adds to woeful liquidity conditions, while concerns about commodities, Chinese currency policy and global slowdown haven’t gone away at all. |
Add to that sharp widening in subordinated European bank spreads and we have the makings of a very nervous market. | Add to that sharp widening in subordinated European bank spreads and we have the makings of a very nervous market. |
11.21am GMT | 11.21am GMT |
11:21 | 11:21 |
Wondering whether to be fearful or cheerful today? Our video runs though the reasons to panic, or be optimistic | Wondering whether to be fearful or cheerful today? Our video runs though the reasons to panic, or be optimistic |
11.12am GMT | 11.12am GMT |
11:12 | 11:12 |
Former JP Morgan banker fined over London Whale | Former JP Morgan banker fined over London Whale |
The banking sector likes to argue that it has mended its ways since the financial crisis struck. Critics aren’t convinced. | The banking sector likes to argue that it has mended its ways since the financial crisis struck. Critics aren’t convinced. |
So it’s worth noting that Britain’s City watchdog has just slapped a £792,900 fine on a former senior JP Morgan banker, over one of the biggest scandals of recent years. | So it’s worth noting that Britain’s City watchdog has just slapped a £792,900 fine on a former senior JP Morgan banker, over one of the biggest scandals of recent years. |
Achilles Macris, the ex head of CIO International for JPMorgan Chase Bank, has been sanctioned for failing to be “open and co-operative” with regulators over the “London Whale trades” which ultimately cost them £13bn. | Achilles Macris, the ex head of CIO International for JPMorgan Chase Bank, has been sanctioned for failing to be “open and co-operative” with regulators over the “London Whale trades” which ultimately cost them £13bn. |
"FCA fines former Head of JP Morgan’s CIO International £792,900 for failing to be open and co-operative."Sharing is caring. | "FCA fines former Head of JP Morgan’s CIO International £792,900 for failing to be open and co-operative."Sharing is caring. |
The London Whale was Bruno Iksil – whose bullish and complicated trades turned sour in 2012. Despite the potential risks, Macris didn’t tell the Financial Conduct Authority the full extent of the problems, they say. | The London Whale was Bruno Iksil – whose bullish and complicated trades turned sour in 2012. Despite the potential risks, Macris didn’t tell the Financial Conduct Authority the full extent of the problems, they say. |
This made it harder for the FCA to judge the situation, and also made it harder for more junior staff to be open and cooperative. | This made it harder for the FCA to judge the situation, and also made it harder for more junior staff to be open and cooperative. |
Mark Steward, director of enforcement and market oversight at the FCA, says: | Mark Steward, director of enforcement and market oversight at the FCA, says: |
‘A failure to communicate openly with us can affect the well-running of markets and cause unnecessary harm to investors, especially in times of financial stress or crisis. | ‘A failure to communicate openly with us can affect the well-running of markets and cause unnecessary harm to investors, especially in times of financial stress or crisis. |
Regulators need open communication with firms so that better decisions can be made sooner. Mr Macris should have explained the position more squarely especially when he knew the Synthetic Credit Portfolio’s losses had worsened.’ | Regulators need open communication with firms so that better decisions can be made sooner. Mr Macris should have explained the position more squarely especially when he knew the Synthetic Credit Portfolio’s losses had worsened.’ |
What a shame that the review in to Britain’s banking culture has been shelved.... | What a shame that the review in to Britain’s banking culture has been shelved.... |
Updated | Updated |
at 11.39am GMT | at 11.39am GMT |
10.47am GMT | 10.47am GMT |
10:47 | 10:47 |
Here’s a reminder of the most astonishing development of the day (so far) -- investors are now paying for the privilege to lend to the Japanese government for the next decade: | Here’s a reminder of the most astonishing development of the day (so far) -- investors are now paying for the privilege to lend to the Japanese government for the next decade: |
Historical day. Japan's 10y yield goes negative, the first time a G7 country's 10y yield has done so: pic.twitter.com/NvZk0GFsLd | Historical day. Japan's 10y yield goes negative, the first time a G7 country's 10y yield has done so: pic.twitter.com/NvZk0GFsLd |
Yield is the interest rate on a bond. A high yield means a bond is riskier, while safe-haven assets yield less. | Yield is the interest rate on a bond. A high yield means a bond is riskier, while safe-haven assets yield less. |
Short-term German and Japanese bonds have been negative for a while, reflecting the fact that they’re a solid place to put your money (especially as there are negative interest rates in Japan and the eurozone). | Short-term German and Japanese bonds have been negative for a while, reflecting the fact that they’re a solid place to put your money (especially as there are negative interest rates in Japan and the eurozone). |
But for a 10-year bond to be negative? That shows investors are pricing in weak economic growth, and turmoil, for some time. | But for a 10-year bond to be negative? That shows investors are pricing in weak economic growth, and turmoil, for some time. |