Tag: interest rates
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Fed Chair Powell warns inflation is elevated: Fed cuts interest rate by 0.25%
US Federal Reserve Chairman Jerome Powell said that inflation is going higher and is elevated after the Fed announced a 0.25% interest rate cut from 4.5% to 4.25%. The Fed will also continue to reduce its balance sheet by reducing its Treasury holdings, agency’s debt and agency mortgage-backed securities. You can read the Fed’s statement…
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The US Federal Reserve cuts interest rates by 0.5%
The US Federal Reserve has cut down interest rates by 0.5% in a rare and powerful dovish move, despite traders expecting a cut of only 0.25%. The US Federal Reserve’s interest rate is now set in the range between 4.75% and 5%. Inflation for August was record at 2.2% in line with expectations with the…
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Higher for longer with recessionary vibes
This is a depressing speech from EU Central Bank chief Christine Lagarde citing recessionary vibes in Europe, prolonged inflation, and slowing demand (both European demand and international demand for European products). Personally, I assumed Christine Lagarde was going to give a hawkish pause but the Central Bank increased the interest to 25 BPS (0.25%). Her…
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What’s Bank of Valletta’s loss on its €4.5 billion bond portfolio?
It is common for banks to list their bond portfolios under their historical amortised cost, but standard accounting principles may not be sufficient to provide full transparency in these turbulent financial times. In its latest annual report, Bank of Valletta has listed a bond portfolio of around €4.5 billion in total at its historical purchase…
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What’s Bank of Valletta’s loss on its €4.5 billion bond portfolio?
It is common for banks to list their bond portfolios under their historical amortised cost, but standard accounting principles may not be sufficient to provide full transparency in these turbulent financial times. In its latest annual report, Bank of Valletta has listed a bond portfolio of around €4.5 billion in total at its historical purchase…
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This time it’s not different. SPX 10,000 and gilded debt.
There’s fear in the credit and public debt markets but for me, personally, looking at the deep end of the long-dated treasuries and public debt notes in Europe, there are good bargains to be found. We have come a long way ever since Jay Powell said “We are not thinking of thinking of raising rates”,…
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Ripping off customers, as usual
Bank of Valletta is run like a government department by political appointees and a board of directors with no skin in the game. Lately, Bank of Valletta has survived by extracting value from its shareholders and after botching the Deiulemar case, Bank of Valletta is burning even more of its capital simply to add to…
