{"id":12154,"date":"2015-09-12T14:29:31","date_gmt":"2015-09-12T19:29:31","guid":{"rendered":"http:\/\/olduvai.ca\/?p=12154"},"modified":"2015-09-12T14:29:31","modified_gmt":"2015-09-12T19:29:31","slug":"weekly-commentary-china-hardens-peg-and-brazil-goes-to-junk","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=12154","title":{"rendered":"Weekly Commentary: China Hardens Peg and Brazil Goes to Junk"},"content":{"rendered":"<h3 class=\"post-title entry-title\"><a href=\"http:\/\/creditbubblebulletin.blogspot.ca\/2015\/09\/weekly-commentary-china-hardens-peg-and.html\" target=\"_blank\">Weekly Commentary: China Hardens Peg and Brazil Goes to Junk<\/a><\/h3>\n<div class=\"post-header\">Let\u2019s this week begin with a cursory glance at the world through the eyes of the bulls. First, the global backdrop provides the Fed convenient cover to delay \u201cliftoff\u201d at next week\u2019s widely anticipated FOMC meeting. Even if they do move, it\u2019s likely \u201cone and done.\u201d While on a downward trajectory, China\u2019s $3.5 TN international reserve hoard is ample to stabilize the renminbi. Chinese officials clearly subscribe to their own commanding version of do \u201cwhatever it takes\u201d to control finance and the economy. One way or another, they will sufficiently stabilize growth &#8211; for now. The U.S. economy enjoys general isolation from China and EM travails. Investment grade bond issuance \u2013 the lifeblood of share buybacks and M&amp;A \u2013 has already bounced back robustly. The U.S. currency, economy and securities markets remain the envy of the world. \u201cMoney\u201d fleeing faltering EM will continue to support U.S. asset markets along with the real economy.<\/p>\n<p>September 10 \u2013 Financial Times (Netty Idayu Ismail): \u201cThe European Central Bank will ensure its policy stance remains as accommodative as needed amid financial-market turbulence, according to Executive Board member Peter Praet. \u2018The Governing Council will remain vigilant that recent volatility does not materially affect the broad array of financial conditions and therefore lead to an unwarranted tightening of the monetary-policy stance,\u2019 Praet said\u2026 \u2018It has emphasized its willingness and ability to act, if warranted, by using all the instruments available within its mandate.\u2019\u201d<\/p>\n<p>The ECB\u2019s \u201cunwarranted tightening of the monetary-policy stance\u201d comes from the same playbook as Bernanke\u2019s (the Fed\u2019s) \u201cpush back against a tightening of financial conditions.\u201d In a world where financial markets dictate general Credit Availability as never before, central bankers have essentially signaled open-ended commitment to liquidity injections as necessary to counteract risk aversion. Such extraordinary market exploitation underpins the fundamental bullish view that global policymakers have things under control.<\/p><\/div>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Weekly Commentary: China Hardens Peg and Brazil Goes to Junk Let\u2019s this week begin with a cursory glance at the world through the eyes of the bulls. First, the global backdrop provides the Fed convenient cover to delay \u201cliftoff\u201d at next week\u2019s widely anticipated FOMC meeting. Even if they do move, it\u2019s likely \u201cone and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5144,90,130,233,1732,282,4512,8858,5942,8948,834,8947],"class_list":["post-12154","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bernanke","tag-brazil","tag-china","tag-ecb","tag-emerging-markets","tag-european-central-bank","tag-fomc","tag-junk-rating","tag-ma","tag-share-buybacks","tag-us","tag-yuan-peg"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12154","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12154"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12154\/revisions"}],"predecessor-version":[{"id":12155,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12154\/revisions\/12155"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12154"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12154"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12154"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}