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Australia's consumer confidence shows signs of stabilisation, but remains below long-term average

May 09, 2017 11:57 am UTC| Insights & Views Economy

Australias consumer confidence ticked up a modest 0.9 percent in the week ending 7 May, data released earlier today showed. The index edged higher to 112.3 just below its long term average. Households near and long term...

FxWirePro: A run through on buying 2M25D risk-reversals against shorting 9M35D USD puts/CNH calls

May 09, 2017 10:20 am UTC| Research & Analysis Insights & Views

Hedging back-end USDCNH option shorts with front-end risk-reversals (equal USD notionals on all legs) does not detract from short vol returns while reducing drawdowns by 30%-40% Cum. P/Ls (bp USD) from i) selling 9M 35D...

FxWirePro: Are you dubious on GBP/JPY’s major trend? Snap rallies to write exorbitant puts to reduce cost of “Put Ratio Back Spreads” for hedging

May 09, 2017 10:13 am UTC| Research & Analysis Insights & Views

Brexit caused two Sterling debacles, first in June with the vote and then after the summer when PM May suggested a hard exit. In spite of GBPJPY downtrend, election clears the way for a longer and smoother Brexit...

FxWirePro: More RORO than Euro-up on perplexed macro plot, OTC FX to substantiate

May 09, 2017 07:33 am UTC| Research & Analysis Insights & Views

Macrons victory has been greeted by markets with a big yawn, which in hindsight should not be too surprising given that it was anticipated. The euro had rallied last week in expectation of a Macron presidency. Perhaps...

Government spending explained in 10 charts; from Howard to Turnbull

May 09, 2017 03:51 am UTC| Insights & Views Politics Economy

Successive Australian governments are usually judged on how they balance the budget and spend taxpayers dollars. The stereotypes are that Liberal governments keep a tight hold on the purse strings, while Labor governments...

FX Hedging Strategy Series

FxWirePro: Easing trend in Chinese Trade - Calendar straddles for USD/CNH and relative value delta hedging for EUR/CNH

May 08, 2017 12:36 pm UTC| Research & Analysis Insights & Views

The Chinese PMIs indicate easing Trend in Trade: Chinas NBS manufacturing PMI eased in April, declining to 51.2 from 51.8 in March, which was the highest reading since April 2012. Easing was broad-based across the major...

FxWirePro: VXY vols print fresh Fed-cycle lows after French polls

May 08, 2017 12:23 pm UTC| Research & Analysis Insights & Views

VXY printed fresh Fed-cycle lows this past week and is screening 1 vol cheap vis-à-vis macro correlations. The undershoot is not yet at historical extremes but bears close watching in a seasonally volatile...

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Economy

Dollar Rises as Fed Hike Bets Weigh on Asian Currencies

Asian currencies weakened against the U.S. dollar on Monday as investors raised expectations for a Federal Reserve interest rate hike this week. The Japanese yen remained close to a seven-month high as traders also...

BOJ Flags Import Costs and Yen Shocks as Persistent Inflation Risks

The Bank of Japan is increasingly concerned that rising import costs and currency fluctuations can trigger sharp inflation in Japan, suggesting these supply-driven price pressures should play a greater role in monetary...

Asian Stocks Fall as AI Fears and Oil Surge Hit Markets

Asian stocks declined on Monday as concerns over a potential slowdown in artificial intelligence development pressured technology shares, while oil prices above $100 a barrel fueled inflation fears and expectations for...

Hormuz Vessel Traffic Drops to Single Digits

Commodity vessel traffic through the Strait of Hormuz dropped to single-digit daily levels over the weekend, highlighting growing disruption to one of the worlds most important energy and shipping routes. Preliminary...

Goldman Sachs Forecasts Fed Rate Hike as Inflation Risks Rise

Goldman Sachs now expects the Federal Reserve to raise interest rates by 25 basis points at its September meeting, reversing its previous forecast for no change as inflation concerns intensify across U.S. financial...

Politics

Trump Open to Chinese Automakers Building Cars in US

President Donald Trump said he would not oppose Chinese automakers opening manufacturing plants in the United States, provided they build vehicles domestically and employ American workers. If China wanted to come in and...

Trump Touts $5,000 Checks if Republicans Win Congress

President Donald Trump said the United States could afford to send $5,000 payments to every American adult if Republicans retain control of Congress in this years elections, though lawmakers said the proposal would require...

Takaichi-Backed Koja Wins Okinawa Governor Race

A candidate supported by Japanese Prime Minister Sanae Takaichis government has won the Okinawa gubernatorial election, potentially clearing the way for Tokyo to expand its military presence across the strategically...

Philippines Holds Historic Bangsamoro Election Amid Tight Security

Voting began Monday in the Philippines Muslim-majority south in a landmark Bangsamoro election, with security tightened after pre-election violence left three people dead and 15 others wounded. The vote is considered a...

China’s Global Times Slams Anthropic CEO’s AI Slowdown Plan as ‘Cold War’ Strategy

Chinas state-backed Global Times has criticized Anthropic CEO Dario Amodeis proposal to slow the development of advanced artificial intelligence, arguing that the initiative reflects a U.S. Cold War playbook aimed at...

Science

Blue Origin New Glenn Explosion Could Delay Launch Operations Until 2028

Blue Origin is facing a significant setback after a dramatic explosion involving its New Glenn rocket severely damaged a launch pad at Cape Canaveral, Florida. According to NASA Administrator Jared Isaacman, repairs to the...

Blue Origin New Glenn Rocket Explodes During Launch Pad Test, Delaying Space Ambitions

Blue Origin suffered a major setback after its uncrewed New Glenn rocket exploded during a launch pad test in Florida on Thursday, raising new challenges for Jeff Bezos space company as it competes with Elon Musks SpaceX...

SpaceX Delays Starship V3 Launch Ahead of Potential Record IPO

SpaceX on Thursday postponed the highly anticipated launch of its 12th Starship rocket test from Texas after technical issues interrupted the final countdown. The company now plans to attempt the Starship V3 launch again...

Trump Administration Releases New UFO Files and Apollo Mission Records

The U.S. Defense Department has released dozens of previously classified UFO-related files following an order from President Donald Trump, sparking renewed debate over unidentified anomalous phenomena (UAP) and government...

China vs. NASA: The New Moon Race and What's at Stake by 2030

The space race is back and this time, its a direct competition between the United States and China for dominance on the lunar surface. NASAs Artemis II mission recently made history when four astronauts flew farther into...

Technology

SoftBank Shares Plunge 11% After OpenAI Rules Out 2026 IPO

SoftBank Group shares plunged on Monday as investors reacted to OpenAI CEO Sam Altman ruling out a public listing in 2026 and growing calls to slow the pace of artificial intelligence development. SoftBank (TYO: 9984)...

Z.AI Shares Slide 7% After $5 Billion Fundraising

Z.AI shares tumbled nearly 7% on Monday, reaching a 5-1/2-month low after the Chinese artificial intelligence company completed a roughly $5 billion fundraising package involving discounted new shares and convertible...

Anthropic Eyes Second Straight Profitable Quarter Ahead of Potential IPO

Anthropic expects to post positive adjusted operating income for a second consecutive quarter, signaling improving financial performance as the artificial intelligence company moves closer to a potential IPO, the Financial...

Trump Vows to Keep U.S. Ahead of China in AI Race

President Donald Trump said Sunday that the United States must maintain its artificial intelligence lead over China, pushing back against calls from prominent technology leaders to slow AI development amid growing safety...

Samsung, SK Hynix Reject KEPCO’s $18.7 Billion Power Funding Plan

Samsung Electronics and SK Hynix have rejected a proposal from Korea Electric Power Corp. (KEPCO) that would require the chipmakers to provide 25 trillion won ($18.7 billion) in upfront funding to secure electricity...
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