The beat continues.
The Reserve Bank of Australia joined the chorus of central banks to ease policy. The 25 bp rate cut was not a major surprise but it did catch many a bit off-guard as recent data and the pace of the Australian dollar's decline had prompted many to push out the expectation to next month.
The Aussie's drop dragged down the New Zealand dollar almost as much. The Kiwi fell through $0.7200 late in the Asian session and is straddling that area in the European morning. The $0.7220-$0.7740 area looks like the proximate ceiling.
bloomberg.com/news/articles/2015-02-03/greece-said-to-drop-writedown-request-amid-eu-opposition
Oil up rigs down
MADRID (MarketWatch) — Crude-oil futures extended gains Tuesday, with prices rallying on speculation that a sharp decline in U.S. drilling activity will result in supply cuts.
What's New
BP has reported its quarterly profits and as usual in such a complex business it’s an object lesson in how corporate profits can be, within certain boundaries, rather whatever you might want them to be. This is one of the reasons why the taxation of corporate profits is such a difficult exercise. What exactly is a profit in a complex business? Thus we find that taxable profits are calculated in an entirely different manner to the profits that get reported to the rest of us through the corporation’s accounts. And there’s really no way to deal with this other than to have those two near completely different systems to calculate what the profits are.
Fed Smokes From Different Pipe
Oil up rigs down
MADRID (MarketWatch) — Crude-oil futures extended gains Tuesday, with prices rallying on speculation that a sharp decline in U.S. drilling activity will result in supply cuts.
What's New
BP has reported its quarterly profits and as usual in such a complex business it’s an object lesson in how corporate profits can be, within certain boundaries, rather whatever you might want them to be. This is one of the reasons why the taxation of corporate profits is such a difficult exercise. What exactly is a profit in a complex business? Thus we find that taxable profits are calculated in an entirely different manner to the profits that get reported to the rest of us through the corporation’s accounts. And there’s really no way to deal with this other than to have those two near completely different systems to calculate what the profits are.
Fed Smokes From Different Pipe
Since 2007 nearly every Fed economic forecast has been on the optimistic side.
In an attempt to explain, a new Federal Reserve Bank of San Francisco dives into the Persistent Overoptimism about Economic Growth.
http://globaleconomicanalysis.blogspot.com
More of the beat going on
Denmark’s central bank said on Tuesday that it sold Danish kroner in record amounts in January to weaken the currency and protect its peg against a falling euro.
The Danish central bank, Nationalbanken, said it bought foreign currency worth 106.3 billion Danish kroner ($16.34 billion) last month as part of its market interventions.
The bank said its total foreign-exchange reserves rose by 106.6 billion kroner to 564.1 billion kroner when market interventions and central government’s net borrowing were included.
In an attempt to explain, a new Federal Reserve Bank of San Francisco dives into the Persistent Overoptimism about Economic Growth.
http://globaleconomicanalysis.blogspot.com
More of the beat going on
Denmark’s central bank said on Tuesday that it sold Danish kroner in record amounts in January to weaken the currency and protect its peg against a falling euro.
The Danish central bank, Nationalbanken, said it bought foreign currency worth 106.3 billion Danish kroner ($16.34 billion) last month as part of its market interventions.
The bank said its total foreign-exchange reserves rose by 106.6 billion kroner to 564.1 billion kroner when market interventions and central government’s net borrowing were included.
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