Shorts – Summaries

The Day Today 17th May 2022

RBA Minutes show concern that waiting to raise rates would have made it “more difficult to return inflation to the target if the inflation psychology in Australia were to shift in an enduring way”, a 40bp hike was considered but 25bp settled on as “A move of this size would help signal that the Board was now returning…

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The Day Today 16th May 2022

Sweden and Finland will apply to join NATO. Iran says it can double oil exports if needed by the market. Nuclear talks between Iran and the West may resume after a visit by a EU envoy to Tehran. Aramco earnings beat expectations. Goldman allows senior staff to take as much time off as they want to “rest and recharge”, gives junior bankers two extra vacation…

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The Economist: Finance and economics articles summarised 13th May 2022

Global housing Which housing markets are most susceptible to the expected upcoming interest rate rises world wide? Other than price, three factors will help determine which ones crash: (i) extent to which homeowners have mortgages, (ii) prevalence of variable versus fixed rate mortgages, (iii) household debt. Sweden has relatively high levels of mortgage holders fuelled…

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The Day Today 13th May 2022

Powell: controlling inflation will “include some pain” but stable prices are “bedrock” of the economy; admits it “would have been better” to start hiking rates sooner but “not sure how much difference it would have made”. Powell finally confirmed for his second term almost six months after he was re-nominated, Senate votes 80-19 in his…

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The Day Today 12th May 2022

HKMA intervenes to defend peg, the first time supporting the HKD since 2019. UK employers are using bonuses rather than inflationary pay deals. UK Attorney General to approve scrapping NI Protocol after receiving advice that it would be lawful as it endangers peace and therefore the Good Friday Agreement. UK Foreign Secretary Liz Truss to tell the EU today…

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