Largest Risk Facing Global Economy
This is the lack of policy instruments at the disposal of central banks in the event of a financial crisis: with interest rates on historic lows and the ability to provide any fiscal stimulus heavily curtailed, the options available are limited. Nothing obvious in the way of a solution other than better global growth but what it means is that next time round it will be harder to address a global financial crisis. It is worth remembering that at such times the USD and Gold are the natural havens for flight capital.
The news that the USA has placed sanctions on four Chinese tanker firms including the well known large company Cosco has shocked an already nervous oil market in the wake of the drone attacks on the oil supply pipeline in Saudi Arabia. Quite why traders should be surprised given that the USA announced that they would not tolerate shipping companies carrying Iranian oil back in May is another matter, but that is down to the ongoing uncertainty caused by the wider trade war between the USA and China. Oil WTI is little changed at $56 which is where it was pre the drone attacks.
Tipping Etiquette for the new(ish) Gig Economy
Point of Sale credit and debit card machines increasingly give diners options ranging from No Tip to 10/15/20 or Other %. That is straightforward and avoids awkwardness unless possibly when it comes to hitting the No Tip option. These days Deliveroo workers for example depend on tips and it is not uncommon to ride the lift down with disgruntled Deliveroo workers who have received a grunt and muttered thanks but no tip from less generous neighbours in our building. These days it’s got complicated again and especially due to people carrying less or no cash. What’s the answer? Well needless to say when travelling, the SGM-FX Prepaid Currency Card allows tips and also allows users to draw cash from ATMs at no cost: problem solved!
Discussion and Analysis by Humphrey Percy, Chairman and Founder
Australia With a 25 bp increase in interest rates, the Reserve Bank of Australia took interest rates to an 11 year high of 4.1% and with that increase took the total increase since May 2022 to 4% which is the most aggressive rate tightening cycle ever. This was not expected and consequently had a disproportionate […]
Canadian Curveball Canada was one of the first movers globally to raise interest rates in the face of rising inflation. Whilst much of the rest of the world, including the US, the Eurozone and the UK were still sitting on their hands claiming inflation would be transitory, Canada was busy hiking rates. The nature of […]
US rate cuts Much of the momentum for EURUSD trading above 1.10 only a few weeks ago was built upon expectations of rate cuts by year end at the Federal Reserve. Whilst constantly changing, that view is under threat currently, with markets pricing stickier rate expectations than they previously had been. The Fed is still […]