Sunday, November 24

Finance, Investing

High finance, equity markets and economic data related to it.

Russia Missed Deadline To Pay $117 Million Interest On Bonds
16Mar By Patti MohrNo Comments
Currency, Debt, National Budgets & Interest Rates, Global Economics, Types of News: Brief

Russia Missed Deadline To Pay $117 Million Interest On Bonds

File photo 2018. Russian President Putin meets with Finance Minister Siluanov. Russian Finance Minister Orders Payment Transactions, Says It's Up To Washington To Approve It March 16, 2022--Russia missed a key deadline today to pay $117 million it owes on debt payments on two government bonds. Holders of the dollar-denominated bonds had not received a confirmation of payment at the close of business in London, according to reporting by Reuters. That kicks off a 30-day grace period lasting until April 15. If the Russian government does not make payments by then, creditors can officially declare a default on the bonds. The bonds don't come due until 2023 and 2043, but the interest payments are due now, NPR reported. Impact Of Sanctions Sanctions by a coalition of governments h...
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U.S. Central Bank Begins Long-Awaited Rate Increases
16Mar By Patti MohrNo Comments
Currency, Debt, National Budgets & Interest Rates, Types of News: Brief

U.S. Central Bank Begins Long-Awaited Rate Increases

No Curveballs Or Surprises In Fed's March Meeting March 16, 2022—For the first time in three years, the U.S. Federal Reserve raised its Fed Funds Rate. The 0.25 percent change is the minimal increase it could take. Moreover, it comes as no surprise to the public or to financial markets, That's because the Fed previously announced its plans to begin increasing rates. Since the U.S. economy emerged from the pandemic with strong growth, many analysts criticized the Fed for moving too slow to raise rates as the U.S. prices rose. As the economy reopened from the pandemic, the inflation rate increased steadily to nearly 8 percent a year. "The time for rate increases has clearly come," Fed Chair Jerome Powell said in his video meeting with reporters today. "We have to restore price stabi...
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As Sanctions Against Russia Ramp Up, US Blocks Central Bank
28Feb By Patti MohrNo Comments
Currency, Debt, National Budgets & Interest Rates, Global Economics, Globalization, Global Disintegration, Sanctions, Types of News: Brief

As Sanctions Against Russia Ramp Up, US Blocks Central Bank

The Russian Ruble fell Monday to its lowest level on record. February 28, 2022--The United States added Russia's central bank to its list of targeted sanctions against that country's war on Ukraine. As a result, Americans are barred from doing any business, such as purchasing bonds, with Russia's central bank. The block on the secondary market for ruble or non-ruble denominated bonds for U.S. investors goes into effect immediately. Furthermore, the U.S. Treasury imposed sanctions on Russia's National Wealth Fund, its Ministry of Finance, and the Russian Direct Investment Fund, its CEO and two of its subsidiaries. Global Sanctions in Action Banks around the world started implementing sanctions imposed not only by the United States, but also the European Union, United Kingdom, Ca...
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U.S. Justice Dept Sets Up Crypto Crime Office
24Feb By Patti MohrNo Comments
Corruption, Bribes, Illicit Finance & Money Laundering, Cryptocurrency

U.S. Justice Dept Sets Up Crypto Crime Office

February 24, 2022--The U.S. Justice Department established a department to investigate the criminal use of cryptocurrencies and digital assets and named its first director. The department tapped Eun Young Choi to serve as the first director of the National Cryptocurrency Enforcement Team. Choi has previously served the Justice Department as a senior counsel, an assistant U.S. Attorney and a lead prosecutor. "The NCET will play a pivotal role in ensuring that as the technology surrounding digital assets grows and evolves, the department in turn accelerates and expands its efforts to combat their illicit abuse by criminals of all kinds," Choi said.
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US Inflation Climbs Higher To 7 Percent
12Jan By Patti MohrNo Comments
Currency, Debt, National Budgets & Interest Rates, Global Economics

US Inflation Climbs Higher To 7 Percent

January 12, 2022--After a year of rising prices in the United States, U.S. inflation climbed even higher in December. Even with energy prices dipping down in the month, the Consumer Price Index rose 0.5 percent, bringing inflation up to 7 percent for the year. To date, the U.S. Federal Reserve has held its federal funds rate near record lows. It is currently at 0.8 percent, despite the rising consumer prices. At his confirmation hearing in the Senate Banking Committee yesterday, Federal Reserve Chairman Jerome Powell said the central bank would respond to rising inflation. ItemPrice Change (as a percent)All Items7Food6.3Food At Home6.5Food Away From Home6Energy29.3Energy Commodities48.9Gasoline49.6Fuel Oil41Energy Services10.4Electricity6.3Utility Piped Gas24.1Commodities (not inclu...
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IMF: Crypto, Stocks Surged In Response To Central Bank Policies Since 2020
11Jan By Patti MohrNo Comments
Big Tech, Digital Economy, Cryptocurrency, Currency, Debt, National Budgets & Interest Rates, Europe, EU, Eurozone, Types of News: Brief, United States

IMF: Crypto, Stocks Surged In Response To Central Bank Policies Since 2020

In Effect, The Policies Pose The Risk Of Shocks To The Financial Systems Photo by BTC Keychain January 11, 2022--Cryptocurrencies and stock market equities skyrocketed as central banks produced loose monetary policies amid the 2020 global pandemic. Although cryptocurrency prices and some high-growth stocks have dipped since the start of the year, they both "surged amid easy global financial conditions," the International Monetary Fund reported on today. That may come as no surprise among high finance investors who carefully watch interest rates established by central banks, especially those in the United States and Europe. But today's report by the IMF appears to be the first acknowledgment from the multilateral organization that government agencies are fueling the boom in r...
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Blockchains 101: A Beginner’s Guide To What They Are And How They Work
6Jan By Jesús CedeñoNo Comments
Big Tech, Digital Economy, Cryptocurrency, Types of News: Analysis

Blockchains 101: A Beginner’s Guide To What They Are And How They Work

A Look At One Of The Most Revolutionary And Disruptive New Technologies By Jesús Cedeño The words blockchain and cryptocurrency are becoming increasingly familiar. It seems like they’re mentioned on the news almost every day, generally speaking about Bitcoin. Since some articles talk about the bitcoin blockchain and some about the bitcoin cryptocurrency, a lot of people think the two words are synonyms. However, that’s not true. Those words refer to two different, albeit related concepts. Blockchains are the technology that makes cryptocurrencies possible. And, when push comes to shove, they are just very sophisticated and secure ledgers. In this article, we’ll be taking a look at blockchains to find out what they are, how they work, and why there’s so much fuss about them. Blockc...
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Central Banks Fuel Stock Market Expansion in 2021
30Dec By Patti MohrNo Comments
Currency, Debt, National Budgets & Interest Rates, Finance, Investing, Global Economics, Types of News: Analysis

Central Banks Fuel Stock Market Expansion in 2021

Low-Interest Rate Environment Also Contributing To Rising Cost of Housing December 30, 2021--With near-zero interest rates by central banks in the United States and Europe, companies raised $12 trillion in 2021 sales of stocks, bonds, and new loans. That's up 17 percent from 2020, according to reporting by the Financial Times. Low-interest rates make borrowing easier and increase the money supply. The downside is they encourage riskier investments, benefit those who already own assets, and can skew the societal risk toward inflation. In effect, investors benefit while consumers pay more. Cash to Keep Flowing in 2022 The trend is likely to continue in 2022. Research by J.P. Morgan suggests the U.S. Federal Reserve will continue a "broadly accommodative" policy despite its tape...
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Eurozone Inflation Varies Widely By Country
28Dec By Patti MohrNo Comments
Currency, Debt, National Budgets & Interest Rates, Global Economics, Types of News: Brief

Eurozone Inflation Varies Widely By Country

As the euro-area grows, so does euro-area inflation rate. Overall, the inflation rate reached 4.9 percent by year's end. Some see the rise in prices moderating next year. While others see it persisting and posing a threat to the economic recovery. With the rise in oil prices and supply bottlenecks making global trading more expensive in 2021, consumers around the world are coping with higher prices. Central banks in Europe and the United States are beginning to reduce their stimulus programs. Yet the European Central Bank plans to continue purchasing assets, albeit at a slower pace, while maintaining its policy of zero-to-negative interest rates into 2022. What's interesting is that the inflation rate varies widely in the eurozone, from a moderate 2.2 percent annualized increase in ...
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Fed Keeps Funds At Near Zero, Focuses on Labor Participation Rate
15Dec By Patti MohrNo Comments
Currency, Debt, National Budgets & Interest Rates, Global Economics

Fed Keeps Funds At Near Zero, Focuses on Labor Participation Rate

December 15, 2021--Despite high and rising inflation, the U.S. Federal Reserve decided today to keep its federal funds rate between zero and 0.25 percent. The Federal Reserve statement acknowledged that inflation has "exceeded 2 percent for some time." Furthermore, the unemployment rate is at 4.2 percent--which is significantly close to the 4 percent target that Federal Reserve Chair Jerome Powell mentioned in March. Defining Employment In his comments to reporters in a virtual conference held today, Powell seemed to expand the definition of "maximum employment" that the Fed has traditionally considered. For example, asked to define maximum employment, Powell discussed not only the unemployment rate but also "a broad range of indicators" including: the labor participation rate...
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