No Room for Mistakes as World Economic Waters Turn Choppy – Bloomberg For years, the global economy surfed a flood of easy money from central banks and a surge in Chinese demand for commodities. Now, policy makers are trying to anticipate what’s exposed when the tide goes out.
China’s Yuan Seen to Play a Bigger Role as Funding Currency – Economic Times China’s yuan is likely to be increasingly used as a financing currency for global borrowers in addition to its current role mainly as an investment tool if Beijing cuts interest rates further as expected to support the cooling economy.
Excessive Reliance on Weak FX Rates to be Avoided: IMF’s Lagarde – FXStreet The International Monetary Fund (IMF) chief Lagarde was on the wires today stating that economies should avoid over reliance on weak FX rates.
China Belongs in the TPP – Bloomberg Some are hailing the 12-nation Trans-Pacific Partnership free-trade agreement as a win for American leadership and a defeat for China.
Fed’s Rate Delay Spurred by Worry Over Low Inflation, Minutes Show – Wall Street Journal (subscription) Inflation has been below the Fed’s 2% target for more than three years.
Buy Side Held Back by Confusion on Cross-Trading Swaps – Risk.Net (subscription) Asset managers could realise significant cost savings by internalising some of their swaps flow, but CFTC rules prevent them from doing so.
Critics Push Back at Clinton Tax Proposal Targeting High-Frequency Traders – Wall Street Journal (subscription) Some say proposed tax on excessive order cancellations could increase costs, cause market problems.