Business

Yesterday when summarizing the Fed's action we said that in its latest dovish announcement which has sent the USD to a five month low, the Fed clearly sided with China which desperately want a stronger dollar to which it is pegged (reflected promptly in the Yuan's stronger fixing overnight) at the expense of Europe and Japan, both of which want the USD weaker.

ECB, BOJ don't want a weak dollar; China does not want a strong dollarFed sides with China for now

— zerohedge (@zerohedge) March 16, 2016

By EconMatters

The Head of the Central Bank in Brazil, Alexandre Tombini, has said that he may resign just days after millions of protestors took to the streets of Sao Paulo demanding that President Dilma Rousseff resigns.  Rousseff faced an impeachment bid following allegations that she defrauded the fiscal books in 2014, but rather than step down she promoted former disgraced President Luiz  Inácio Lula da Silva to a ministry position – angering millions of Brazilian citizens.

If the labor market is "tight", and jobless claims are at 42 year lows...

And the 0.5ppt point rise in the labor force participation rate is "heartening"...

Then please Dear Janet, oh arbiter of all things labor-ic, explain - after exuberant hope and hype during 2015 that escape velocity was coming - why real average weekly earnings growth just collapsed to just 0.6%, the weakest since August 2014?

The world’s second-largest reinsurer, German Munich Re which is roughly twice the size of Berkshire Hathaway Re, is boosting its gold reserves and buying gold in the face of the punishing negative interest rates from the European Central Bank, it announced today.

As caught by Mark O'Byrne at GoldCore and reported by Thomson Reuters this afternoon, the world’s largest reinsurer is far from alone in seeking alternative investment strategies to counter the near-zero or negative interest rates that reduce the income insurers require to pay out on policies.