Rally Stalls as Dollar Consolidates Recent Gains

  • US-China tensions are still rising; we retain our strong dollar call
  • FOMC minutes will be released; Canada reports March retail sales
  • Brexit headlines came roaring back yesterday; we remain bearish on sterling
  • Japan exports contracted for the fifth straight month; Korea is getting more concerned about the weak won
  • South Africa reported softer than expected April CPI; SARB on hold tomorrow Continue reading “Rally Stalls as Dollar Consolidates Recent Gains”

Emerging Market Country Profiles: Global Backdrop to Remain Challenging

Profiles of Brazil, Mexico, China, India, Indonesia, and South Africa.

Continue reading “Emerging Market Country Profiles: Global Backdrop to Remain Challenging”

From the Securities Lending Trading Desk – Week of May 20th

In the Americas, Uber Technologies (UBER) saw its shares fall 7.6% in their highly anticipated initial public offering. In Asia Pacific, the plight of one of Japan’s leading phone display manufacturers continued to worsen. In Europe, Osram Licht AG (OSR GY) shares buck trend after a possible Bain-Carlyle offer.

Continue reading “From the Securities Lending Trading Desk – Week of May 20th”

Dollar Firm as Divergence Theme Returns

  • The dollar rally has resumed as the divergence theme remains alive and well
  • There is mounting political risk in the UK; sterling remains heavy
  • Japan reported weak April department store sales; dovish RBA minutes were released
  • Thailand Q1 GDP growth slowed as expected to 2.8% y/y; Korea reported weak trade data for the first 20 days of May
  • Turkish central bank effectively loosened policy after taking limited steps to stabilize the lira Continue reading “Dollar Firm as Divergence Theme Returns”

Some Thoughts on the European Parliamentary Elections

Voting for the European Parliament begins this Thursday and continues through Sunday. While these elections have little direct impact on fiscal and monetary policy, they will nevertheless be a referendum on the EU itself. In turn, the results will have significant implications for domestic politics and policies. Continue reading “Some Thoughts on the European Parliamentary Elections”

Dollar Rally Derailed by Surprise Election Results in Australia and India

  • We believe the dollar rally remains on track
  • Eurozone political noise came from an unexpected source
  • Japan Q1 GDP grew 2.1% SAAR vs. -0.2% expected; AUD bounce from the shock weekend election results has run out of steam
  • India exit polls suggest that Prime Minister Modi has won another term; Chile Q1 GDP is expected to grow 1.8% y/y
  • Bank of Israel is expected to keep rates steady at 0.25% Continue reading “Dollar Rally Derailed by Surprise Election Results in Australia and India”

Drivers for the Week Ahead

  • We believe the dollar rally remains on track
  • FOMC minutes will be released Wednesday; there is a full slate of Fed speakers this week
  • Eurozone flash PMIs will be reported Thursday; UK reports April CPI Wednesday
  • Japan has a heavy data week; RBA minutes will be released Tuesday
  • In EM, the central banks of Israel and South Africa meet Continue reading “Drivers for the Week Ahead”

EM Preview for the Week Ahead

EM remains hostage to global trade tensions. Last week’s moves by the US to with regards to Japan, EU, Canada, and Mexico should only be viewed as a change in tactics. China is now the sole focus, but these other trade skirmishes are likely to flare again. We remain negative on EM within this environment. Continue reading “EM Preview for the Week Ahead”

Four Takeaways From the 2019 Finadium Investors in Securities Lending Conference

BBH was pleased to sponsor the Finadium Investors Securities Lending conference on May 2- 3 in New York City, and represented the industry on several panels.  The forum was well attended by Asset Managers, Beneficial Owners, Agent Lenders, Prime Brokers, Hedge Funds, as well as a variety of industry vendors, and provided comprehensive insights on the market trends influencing our industry.  Continue reading “Four Takeaways From the 2019 Finadium Investors in Securities Lending Conference”