Ken Fisher Special to USA TODAY Published 10:00 p.m. UTC Aug 19, 2018 With 2018’s primary season ending, midterm races are taking shape. So is the likely market impact. Democrats will gain seats in the House of Representatives, maybe enough for control, while Republicans may gain slightly in the Senate. The real winner for markets, though, will be gridlock, in which no major legislation gets passed. And that’s bullish for stocks. Why gridlock? Because a decisive number of seats won't swing to one party or another. Democrats either win a tiny House majority or miss by a whisker. They need 23 more seats to flip it – doable. But predictions of a "blue wave" seem overly optimistic, given primary results. Yes, in traditional GOP-leaning districts, Democratic primary turnout is up relative to history. But Republican turnout remains mostly higher. This suggests Democrats gain seats in balanced districts but struggle beyond that. Thanks to gerrymandering, … [Read more...] about Why midterms should boost the stock market, 401(k)s
LONDON — The market impact of no Brexit deal would be “significant” in the short term, U.K. Foreign Secretary Jeremy Hunt said today, as his Latvian counterpart placed the chance of such an outcome at 50-50. Hunt’s comment, made during a diplomatic visit to Riga, suggests that the U.K. leaving the EU without an overall deal would risk causing a sharp fall in the value of the pound. But the foreign secretary added that the U.K. economy would “find a way to get through it” and “ultimately to thrive,” Reuters reported. Latvian Minister for Foreign Affairs Edgars Rinkevics met Hunt this morning and told a press conference afterward that he rated the possibility of a no-deal Brexit at 50-50. He made the same prediction on BBC Radio 4’s Today program, but added that despite this, he remains “optimistic.” Hunt told the press conference he does not want to put a percentage on the risk, putting him at odds with International … [Read more...] about Jeremy Hunt: No-deal Brexit market impact would be ‘significant’
RIGA (Reuters) - The short-term market impact will be significant if Britain leaves the European Union without a deal, British Foreign Secretary Jeremy Hunt said during a visit to Latvia on Wednesday. Latvia's Foreign Minister Edgars Rinkevics speaks during an interview in Riga, Latvia May 23, 2018. REUTERS/Ints Kalnins Britain is due to quit the EU in less than eight months, but the government has yet to agree with Brussels the terms of its departure. It has stepped up planning for the possibility of leaving without a formal agreement. Sterling fell last week, in part on concern about the state of negotiations and the chance of a no-deal Brexit. Asked about the possible market reaction to leaving without a deal, Hunt said at news conference: “Well, of course, there will be significant short-term impact, but I think in these situations the British economy would find a way to get through it and, indeed, we would find a way ultimately to thrive and be … [Read more...] about Significant short-term market impact to no-deal Brexit
1 Read comments Saturday, 28 July 2018 - Farming The island’s meat plant has now increased its intake of animals for slaughter again, following a temporary reduction in its activity. Two weeks ago, the abattoir decided to limit the number of lambs being taken in for slaughter, because of a fall in market prices for the meat.A statement from the government’s Department of Environment, Food and Agriculture said: ’Pressures in the UK meant that we had to take a tough, commercial decision to temporarily limit the intake of lambs for slaughter due to the low market price. ’The UK market is unpredictable at the moment and shifted significantly over two days, which meant that a temporary intake limit had to be imposed at short notice. ’We expect the UK market to remain unpredictable for the foreseeable future due to a number of factors, including the impact of the hot weather which has reduced consumer demand. This has a downward effect on both stock and … [Read more...] about Slaughter limit lifted after ‘pressures’ in UK market
Author: ECB. The following press release was issued by the ECB on January 26, 2017 00:00. Speech by Yves Mersch, Member of the Executive Board of the ECB, at the GFF summit, Luxembourg, 26 January 2017 Introduction There is no doubt that European repo markets today are operating in unprecedented territory. In the past year we have faced the extraordinary situation of collateralised transactions taking place well below the ECB’s deposit rate, and not just for the highest-rated issuers. There are increasing signs that this is indicative of market stress. Though market depth remains relatively stable and the bid offer spreads are not a major liquidity restriction, the decreased average ticket size seems reflective of collateral scarcity in some market segments. If one looks at the distribution of trades taking place by rates towards the end of last year, while German collateral usually traded at around -70 bps, it traded at -4.88% at year-end, reflecting increased demand for … [Read more...] about Speech Yves Mersch: Ructions in the repo market – monetary easing or regulatory squeezing?