The report also underscores the need for authorities to be better prepared for the rapid speed at which bank runs can occur in today's digital age. With round-the-clock access to payments, mobile banking, and social media, it is crucial to have mechanisms in place to address and mitigate the impact of such events.<\/p>\n\n\n\n
FSB's assessment of the Credit Suisse debacle indicates that the international banking rules established after the 2008 financial crisis have proven effective. While some enhancements in their application may be necessary, there is no need for a substantial overhaul. The key lesson here is that preserving financial stability requires a robust public sector backstop and readiness to address the challenges posed by modern banking practices.<\/p>\n","post_title":"Why The Credit Suisse Debacle Won't Prompt Global Banking Rule Revisions","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-the-credit-suisse-debacle-wont-prompt-global-banking-rule-revisions","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:07","post_modified_gmt":"2023-10-12 13:33:07","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13791","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
One of the key findings of the report is the importance of having an adequate public sector backstop in place to support the resolution of failing banks. This backstop could come in the form of central bank support, deposit insurance funds, or fiscal lending.<\/p>\n\n\n\n
The report also underscores the need for authorities to be better prepared for the rapid speed at which bank runs can occur in today's digital age. With round-the-clock access to payments, mobile banking, and social media, it is crucial to have mechanisms in place to address and mitigate the impact of such events.<\/p>\n\n\n\n
FSB's assessment of the Credit Suisse debacle indicates that the international banking rules established after the 2008 financial crisis have proven effective. While some enhancements in their application may be necessary, there is no need for a substantial overhaul. The key lesson here is that preserving financial stability requires a robust public sector backstop and readiness to address the challenges posed by modern banking practices.<\/p>\n","post_title":"Why The Credit Suisse Debacle Won't Prompt Global Banking Rule Revisions","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-the-credit-suisse-debacle-wont-prompt-global-banking-rule-revisions","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:07","post_modified_gmt":"2023-10-12 13:33:07","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13791","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
The key takeaway from the FSB report is that the existing international banking rules are fundamentally sound. While the Credit Suisse incident highlighted certain areas for improvement, such as how the rules are applied, the core substance of the regulations remains effective.<\/p>\n\n\n\n
One of the key findings of the report is the importance of having an adequate public sector backstop in place to support the resolution of failing banks. This backstop could come in the form of central bank support, deposit insurance funds, or fiscal lending.<\/p>\n\n\n\n
The report also underscores the need for authorities to be better prepared for the rapid speed at which bank runs can occur in today's digital age. With round-the-clock access to payments, mobile banking, and social media, it is crucial to have mechanisms in place to address and mitigate the impact of such events.<\/p>\n\n\n\n
FSB's assessment of the Credit Suisse debacle indicates that the international banking rules established after the 2008 financial crisis have proven effective. While some enhancements in their application may be necessary, there is no need for a substantial overhaul. The key lesson here is that preserving financial stability requires a robust public sector backstop and readiness to address the challenges posed by modern banking practices.<\/p>\n","post_title":"Why The Credit Suisse Debacle Won't Prompt Global Banking Rule Revisions","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-the-credit-suisse-debacle-wont-prompt-global-banking-rule-revisions","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:07","post_modified_gmt":"2023-10-12 13:33:07","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13791","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
The FSB report did not criticize Switzerland, despite comments from Bank of England Governor Andrew Bailey that Switzerland did not adhere to the prescribed \"playbook.\" Instead, the FSB praised Switzerland for taking actions that preserved financial stability, albeit through means other than the resolution approach.<\/p>\n\n\n\n
The key takeaway from the FSB report is that the existing international banking rules are fundamentally sound. While the Credit Suisse incident highlighted certain areas for improvement, such as how the rules are applied, the core substance of the regulations remains effective.<\/p>\n\n\n\n
One of the key findings of the report is the importance of having an adequate public sector backstop in place to support the resolution of failing banks. This backstop could come in the form of central bank support, deposit insurance funds, or fiscal lending.<\/p>\n\n\n\n
The report also underscores the need for authorities to be better prepared for the rapid speed at which bank runs can occur in today's digital age. With round-the-clock access to payments, mobile banking, and social media, it is crucial to have mechanisms in place to address and mitigate the impact of such events.<\/p>\n\n\n\n
FSB's assessment of the Credit Suisse debacle indicates that the international banking rules established after the 2008 financial crisis have proven effective. While some enhancements in their application may be necessary, there is no need for a substantial overhaul. The key lesson here is that preserving financial stability requires a robust public sector backstop and readiness to address the challenges posed by modern banking practices.<\/p>\n","post_title":"Why The Credit Suisse Debacle Won't Prompt Global Banking Rule Revisions","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-the-credit-suisse-debacle-wont-prompt-global-banking-rule-revisions","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:07","post_modified_gmt":"2023-10-12 13:33:07","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13791","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Following the 2008 crisis, regulators worldwide devised a framework to address the issue of \"too big to fail.\" This framework aimed to prevent banks from holding authorities hostage during a financial crisis and ensure that taxpayers were not left to bail out failing banks. The framework included options such as debt write-downs to replenish capital and the transfer of deposits to healthier banks.<\/p>\n\n\n\n
The FSB report did not criticize Switzerland, despite comments from Bank of England Governor Andrew Bailey that Switzerland did not adhere to the prescribed \"playbook.\" Instead, the FSB praised Switzerland for taking actions that preserved financial stability, albeit through means other than the resolution approach.<\/p>\n\n\n\n
The key takeaway from the FSB report is that the existing international banking rules are fundamentally sound. While the Credit Suisse incident highlighted certain areas for improvement, such as how the rules are applied, the core substance of the regulations remains effective.<\/p>\n\n\n\n
One of the key findings of the report is the importance of having an adequate public sector backstop in place to support the resolution of failing banks. This backstop could come in the form of central bank support, deposit insurance funds, or fiscal lending.<\/p>\n\n\n\n
The report also underscores the need for authorities to be better prepared for the rapid speed at which bank runs can occur in today's digital age. With round-the-clock access to payments, mobile banking, and social media, it is crucial to have mechanisms in place to address and mitigate the impact of such events.<\/p>\n\n\n\n
FSB's assessment of the Credit Suisse debacle indicates that the international banking rules established after the 2008 financial crisis have proven effective. While some enhancements in their application may be necessary, there is no need for a substantial overhaul. The key lesson here is that preserving financial stability requires a robust public sector backstop and readiness to address the challenges posed by modern banking practices.<\/p>\n","post_title":"Why The Credit Suisse Debacle Won't Prompt Global Banking Rule Revisions","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-the-credit-suisse-debacle-wont-prompt-global-banking-rule-revisions","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:07","post_modified_gmt":"2023-10-12 13:33:07","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13791","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Credit Suisse, once a symbol of Swiss financial strength, faced a catastrophic failure, leaving Swiss officials and regulators grappling with the aftermath. This event was not only a significant test for Credit Suisse but also for the rules and regulations that were put in place after the global financial crash of 2008.<\/p>\n\n\n\n
Following the 2008 crisis, regulators worldwide devised a framework to address the issue of \"too big to fail.\" This framework aimed to prevent banks from holding authorities hostage during a financial crisis and ensure that taxpayers were not left to bail out failing banks. The framework included options such as debt write-downs to replenish capital and the transfer of deposits to healthier banks.<\/p>\n\n\n\n
The FSB report did not criticize Switzerland, despite comments from Bank of England Governor Andrew Bailey that Switzerland did not adhere to the prescribed \"playbook.\" Instead, the FSB praised Switzerland for taking actions that preserved financial stability, albeit through means other than the resolution approach.<\/p>\n\n\n\n
The key takeaway from the FSB report is that the existing international banking rules are fundamentally sound. While the Credit Suisse incident highlighted certain areas for improvement, such as how the rules are applied, the core substance of the regulations remains effective.<\/p>\n\n\n\n
One of the key findings of the report is the importance of having an adequate public sector backstop in place to support the resolution of failing banks. This backstop could come in the form of central bank support, deposit insurance funds, or fiscal lending.<\/p>\n\n\n\n
The report also underscores the need for authorities to be better prepared for the rapid speed at which bank runs can occur in today's digital age. With round-the-clock access to payments, mobile banking, and social media, it is crucial to have mechanisms in place to address and mitigate the impact of such events.<\/p>\n\n\n\n
FSB's assessment of the Credit Suisse debacle indicates that the international banking rules established after the 2008 financial crisis have proven effective. While some enhancements in their application may be necessary, there is no need for a substantial overhaul. The key lesson here is that preserving financial stability requires a robust public sector backstop and readiness to address the challenges posed by modern banking practices.<\/p>\n","post_title":"Why The Credit Suisse Debacle Won't Prompt Global Banking Rule Revisions","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-the-credit-suisse-debacle-wont-prompt-global-banking-rule-revisions","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:07","post_modified_gmt":"2023-10-12 13:33:07","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13791","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
According to a story by Reuters, the global banking watchdog, the Financial Stability Board (FSB), has recently dismissed the need for significant changes in international banking rules following the rescue of Credit Suisse. The FSB, comprising central bankers, regulators, and officials from leading global economies, released a report outlining the lessons learned from the Credit Suisse situation and concluded that the existing framework remains robust.<\/p>\n\n\n\n
Credit Suisse, once a symbol of Swiss financial strength, faced a catastrophic failure, leaving Swiss officials and regulators grappling with the aftermath. This event was not only a significant test for Credit Suisse but also for the rules and regulations that were put in place after the global financial crash of 2008.<\/p>\n\n\n\n
Following the 2008 crisis, regulators worldwide devised a framework to address the issue of \"too big to fail.\" This framework aimed to prevent banks from holding authorities hostage during a financial crisis and ensure that taxpayers were not left to bail out failing banks. The framework included options such as debt write-downs to replenish capital and the transfer of deposits to healthier banks.<\/p>\n\n\n\n
The FSB report did not criticize Switzerland, despite comments from Bank of England Governor Andrew Bailey that Switzerland did not adhere to the prescribed \"playbook.\" Instead, the FSB praised Switzerland for taking actions that preserved financial stability, albeit through means other than the resolution approach.<\/p>\n\n\n\n
The key takeaway from the FSB report is that the existing international banking rules are fundamentally sound. While the Credit Suisse incident highlighted certain areas for improvement, such as how the rules are applied, the core substance of the regulations remains effective.<\/p>\n\n\n\n
One of the key findings of the report is the importance of having an adequate public sector backstop in place to support the resolution of failing banks. This backstop could come in the form of central bank support, deposit insurance funds, or fiscal lending.<\/p>\n\n\n\n
The report also underscores the need for authorities to be better prepared for the rapid speed at which bank runs can occur in today's digital age. With round-the-clock access to payments, mobile banking, and social media, it is crucial to have mechanisms in place to address and mitigate the impact of such events.<\/p>\n\n\n\n
FSB's assessment of the Credit Suisse debacle indicates that the international banking rules established after the 2008 financial crisis have proven effective. While some enhancements in their application may be necessary, there is no need for a substantial overhaul. The key lesson here is that preserving financial stability requires a robust public sector backstop and readiness to address the challenges posed by modern banking practices.<\/p>\n","post_title":"Why The Credit Suisse Debacle Won't Prompt Global Banking Rule Revisions","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-the-credit-suisse-debacle-wont-prompt-global-banking-rule-revisions","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:07","post_modified_gmt":"2023-10-12 13:33:07","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13791","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13791,"post_author":"18","post_date":"2023-10-13 00:32:54","post_date_gmt":"2023-10-12 13:32:54","post_content":"\n
According to a story by Reuters, the global banking watchdog, the Financial Stability Board (FSB), has recently dismissed the need for significant changes in international banking rules following the rescue of Credit Suisse. The FSB, comprising central bankers, regulators, and officials from leading global economies, released a report outlining the lessons learned from the Credit Suisse situation and concluded that the existing framework remains robust.<\/p>\n\n\n\n
Credit Suisse, once a symbol of Swiss financial strength, faced a catastrophic failure, leaving Swiss officials and regulators grappling with the aftermath. This event was not only a significant test for Credit Suisse but also for the rules and regulations that were put in place after the global financial crash of 2008.<\/p>\n\n\n\n
Following the 2008 crisis, regulators worldwide devised a framework to address the issue of \"too big to fail.\" This framework aimed to prevent banks from holding authorities hostage during a financial crisis and ensure that taxpayers were not left to bail out failing banks. The framework included options such as debt write-downs to replenish capital and the transfer of deposits to healthier banks.<\/p>\n\n\n\n
The FSB report did not criticize Switzerland, despite comments from Bank of England Governor Andrew Bailey that Switzerland did not adhere to the prescribed \"playbook.\" Instead, the FSB praised Switzerland for taking actions that preserved financial stability, albeit through means other than the resolution approach.<\/p>\n\n\n\n
The key takeaway from the FSB report is that the existing international banking rules are fundamentally sound. While the Credit Suisse incident highlighted certain areas for improvement, such as how the rules are applied, the core substance of the regulations remains effective.<\/p>\n\n\n\n
One of the key findings of the report is the importance of having an adequate public sector backstop in place to support the resolution of failing banks. This backstop could come in the form of central bank support, deposit insurance funds, or fiscal lending.<\/p>\n\n\n\n
The report also underscores the need for authorities to be better prepared for the rapid speed at which bank runs can occur in today's digital age. With round-the-clock access to payments, mobile banking, and social media, it is crucial to have mechanisms in place to address and mitigate the impact of such events.<\/p>\n\n\n\n
FSB's assessment of the Credit Suisse debacle indicates that the international banking rules established after the 2008 financial crisis have proven effective. While some enhancements in their application may be necessary, there is no need for a substantial overhaul. The key lesson here is that preserving financial stability requires a robust public sector backstop and readiness to address the challenges posed by modern banking practices.<\/p>\n","post_title":"Why The Credit Suisse Debacle Won't Prompt Global Banking Rule Revisions","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-the-credit-suisse-debacle-wont-prompt-global-banking-rule-revisions","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:07","post_modified_gmt":"2023-10-12 13:33:07","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13791","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n
Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13791,"post_author":"18","post_date":"2023-10-13 00:32:54","post_date_gmt":"2023-10-12 13:32:54","post_content":"\n
According to a story by Reuters, the global banking watchdog, the Financial Stability Board (FSB), has recently dismissed the need for significant changes in international banking rules following the rescue of Credit Suisse. The FSB, comprising central bankers, regulators, and officials from leading global economies, released a report outlining the lessons learned from the Credit Suisse situation and concluded that the existing framework remains robust.<\/p>\n\n\n\n
Credit Suisse, once a symbol of Swiss financial strength, faced a catastrophic failure, leaving Swiss officials and regulators grappling with the aftermath. This event was not only a significant test for Credit Suisse but also for the rules and regulations that were put in place after the global financial crash of 2008.<\/p>\n\n\n\n
Following the 2008 crisis, regulators worldwide devised a framework to address the issue of \"too big to fail.\" This framework aimed to prevent banks from holding authorities hostage during a financial crisis and ensure that taxpayers were not left to bail out failing banks. The framework included options such as debt write-downs to replenish capital and the transfer of deposits to healthier banks.<\/p>\n\n\n\n
The FSB report did not criticize Switzerland, despite comments from Bank of England Governor Andrew Bailey that Switzerland did not adhere to the prescribed \"playbook.\" Instead, the FSB praised Switzerland for taking actions that preserved financial stability, albeit through means other than the resolution approach.<\/p>\n\n\n\n
The key takeaway from the FSB report is that the existing international banking rules are fundamentally sound. While the Credit Suisse incident highlighted certain areas for improvement, such as how the rules are applied, the core substance of the regulations remains effective.<\/p>\n\n\n\n
One of the key findings of the report is the importance of having an adequate public sector backstop in place to support the resolution of failing banks. This backstop could come in the form of central bank support, deposit insurance funds, or fiscal lending.<\/p>\n\n\n\n
The report also underscores the need for authorities to be better prepared for the rapid speed at which bank runs can occur in today's digital age. With round-the-clock access to payments, mobile banking, and social media, it is crucial to have mechanisms in place to address and mitigate the impact of such events.<\/p>\n\n\n\n
FSB's assessment of the Credit Suisse debacle indicates that the international banking rules established after the 2008 financial crisis have proven effective. While some enhancements in their application may be necessary, there is no need for a substantial overhaul. The key lesson here is that preserving financial stability requires a robust public sector backstop and readiness to address the challenges posed by modern banking practices.<\/p>\n","post_title":"Why The Credit Suisse Debacle Won't Prompt Global Banking Rule Revisions","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-the-credit-suisse-debacle-wont-prompt-global-banking-rule-revisions","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:07","post_modified_gmt":"2023-10-12 13:33:07","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13791","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n<\/figure>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n
The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n<\/figure>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n
At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n
The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n<\/figure>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n
However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n
At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n
The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n<\/figure>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n
Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n
However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n
At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n
The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n<\/figure>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n
Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n
Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n
However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n
At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n
The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n<\/figure>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
Therefore, JPMorgan strategist Marko Kolanovic is adopting a defensive stance, maintaining underweight allocations in equities and cryptocurrencies. However, he recommends a boost in the allocation to gold because, during economic downturns, the value of gold may rise, providing a counterbalance to potential losses in other investments. Gold is often considered a safe-haven asset, especially in times of economic uncertainty or geopolitical instability, and investors usually turn to gold as a store of value when other assets are perceived to be risky.<\/p>\n","post_title":"JPMorgan Strategist Expects Most Of The Negative Effects Of Higher Rates \"Still To Come.\" What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jpmorgan-strategist-expects-most-of-the-negative-effects-of-higher-rates-still-to-come-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:22","post_modified_gmt":"2023-10-23 13:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n
Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n
Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n
Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n
However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n
At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n
The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n<\/figure>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
Investors are concerned that Israel's increasing retaliation against Hamas might lead to Iran's involvement in the conflict, potentially triggering global repercussions. However, their apprehension has mainly manifested through actions such as purchasing oil futures and divesting from Israeli assets. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n\n\n\n
Therefore, JPMorgan strategist Marko Kolanovic is adopting a defensive stance, maintaining underweight allocations in equities and cryptocurrencies. However, he recommends a boost in the allocation to gold because, during economic downturns, the value of gold may rise, providing a counterbalance to potential losses in other investments. Gold is often considered a safe-haven asset, especially in times of economic uncertainty or geopolitical instability, and investors usually turn to gold as a store of value when other assets are perceived to be risky.<\/p>\n","post_title":"JPMorgan Strategist Expects Most Of The Negative Effects Of Higher Rates \"Still To Come.\" What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jpmorgan-strategist-expects-most-of-the-negative-effects-of-higher-rates-still-to-come-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:22","post_modified_gmt":"2023-10-23 13:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n
Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n
Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n
Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n
However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n
At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n
The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n<\/figure>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
Higher interest rates will encourage saving over spending in the months ahead and make the debt more costly, and companies that have a bigger credit or other loans with variable interest rates could be in a difficult situation. Higher borrowing costs will hurt corporate profits and discourage businesses from borrowing to invest in new projects, which can hurt economic activity and job creation. And, of course, the flare-up of geopolitical risks adds another headwind and increases tail risks for markets and economic activity.<\/p>\n\n\n\n
Investors are concerned that Israel's increasing retaliation against Hamas might lead to Iran's involvement in the conflict, potentially triggering global repercussions. However, their apprehension has mainly manifested through actions such as purchasing oil futures and divesting from Israeli assets. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n\n\n\n
Therefore, JPMorgan strategist Marko Kolanovic is adopting a defensive stance, maintaining underweight allocations in equities and cryptocurrencies. However, he recommends a boost in the allocation to gold because, during economic downturns, the value of gold may rise, providing a counterbalance to potential losses in other investments. Gold is often considered a safe-haven asset, especially in times of economic uncertainty or geopolitical instability, and investors usually turn to gold as a store of value when other assets are perceived to be risky.<\/p>\n","post_title":"JPMorgan Strategist Expects Most Of The Negative Effects Of Higher Rates \"Still To Come.\" What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jpmorgan-strategist-expects-most-of-the-negative-effects-of-higher-rates-still-to-come-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:22","post_modified_gmt":"2023-10-23 13:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n
Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n
Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n
Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n
However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n
At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n
The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n<\/figure>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
\nRetail sales rose in September, reflecting U.S. shoppers' resilience despite higher prices<\/em><\/figcaption><\/figure>\n\n\n\n
Higher interest rates will encourage saving over spending in the months ahead and make the debt more costly, and companies that have a bigger credit or other loans with variable interest rates could be in a difficult situation. Higher borrowing costs will hurt corporate profits and discourage businesses from borrowing to invest in new projects, which can hurt economic activity and job creation. And, of course, the flare-up of geopolitical risks adds another headwind and increases tail risks for markets and economic activity.<\/p>\n\n\n\n
Investors are concerned that Israel's increasing retaliation against Hamas might lead to Iran's involvement in the conflict, potentially triggering global repercussions. However, their apprehension has mainly manifested through actions such as purchasing oil futures and divesting from Israeli assets. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n\n\n\n
Therefore, JPMorgan strategist Marko Kolanovic is adopting a defensive stance, maintaining underweight allocations in equities and cryptocurrencies. However, he recommends a boost in the allocation to gold because, during economic downturns, the value of gold may rise, providing a counterbalance to potential losses in other investments. Gold is often considered a safe-haven asset, especially in times of economic uncertainty or geopolitical instability, and investors usually turn to gold as a store of value when other assets are perceived to be risky.<\/p>\n","post_title":"JPMorgan Strategist Expects Most Of The Negative Effects Of Higher Rates \"Still To Come.\" What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jpmorgan-strategist-expects-most-of-the-negative-effects-of-higher-rates-still-to-come-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:22","post_modified_gmt":"2023-10-23 13:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n
Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n
Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n
Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n
However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n
At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n
The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n<\/figure>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
Sam Stovall, chief investment strategist at CFRA Research, said that while almost nobody expects a November hike, it's becoming more of a coin toss whether the Fed will raise interest rates in December. JPMorgan strategist Marko Kolanovic anticipates that the majority of adverse outcomes resulting from elevated interest rates are yet to manifest. He highlights an upward trend in consumer loan delinquencies and corporate bankruptcies, suggesting that such trends are likely to persist unless there is a reduction in interest rates.<\/p>\n\n\n\nRetail sales rose in September, reflecting U.S. shoppers' resilience despite higher prices<\/em><\/figcaption><\/figure>\n\n\n\n
Higher interest rates will encourage saving over spending in the months ahead and make the debt more costly, and companies that have a bigger credit or other loans with variable interest rates could be in a difficult situation. Higher borrowing costs will hurt corporate profits and discourage businesses from borrowing to invest in new projects, which can hurt economic activity and job creation. And, of course, the flare-up of geopolitical risks adds another headwind and increases tail risks for markets and economic activity.<\/p>\n\n\n\n
Investors are concerned that Israel's increasing retaliation against Hamas might lead to Iran's involvement in the conflict, potentially triggering global repercussions. However, their apprehension has mainly manifested through actions such as purchasing oil futures and divesting from Israeli assets. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n\n\n\n
Therefore, JPMorgan strategist Marko Kolanovic is adopting a defensive stance, maintaining underweight allocations in equities and cryptocurrencies. However, he recommends a boost in the allocation to gold because, during economic downturns, the value of gold may rise, providing a counterbalance to potential losses in other investments. Gold is often considered a safe-haven asset, especially in times of economic uncertainty or geopolitical instability, and investors usually turn to gold as a store of value when other assets are perceived to be risky.<\/p>\n","post_title":"JPMorgan Strategist Expects Most Of The Negative Effects Of Higher Rates \"Still To Come.\" What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jpmorgan-strategist-expects-most-of-the-negative-effects-of-higher-rates-still-to-come-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:22","post_modified_gmt":"2023-10-23 13:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n
Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n
Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n
Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n
However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n
At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n
The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n<\/figure>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
Shares on Wall Street weakened after data showed this Tuesday that U.S. retail sales increased more than expected in September, suggesting the economy ended the third quarter on a strong note. In September, U.S. retail sales exceeded expectations with a 0.7% increase, surpassing the anticipated 0.3% rise. Additionally, a separate report indicated that production at U.S. factories in September outpaced initial expectations, and because of this, investors worry that strength in consumer spending and production could force the Fed to keep interest rates higher for longer.<\/p>\n\n\n\n
Sam Stovall, chief investment strategist at CFRA Research, said that while almost nobody expects a November hike, it's becoming more of a coin toss whether the Fed will raise interest rates in December. JPMorgan strategist Marko Kolanovic anticipates that the majority of adverse outcomes resulting from elevated interest rates are yet to manifest. He highlights an upward trend in consumer loan delinquencies and corporate bankruptcies, suggesting that such trends are likely to persist unless there is a reduction in interest rates.<\/p>\n\n\n\nRetail sales rose in September, reflecting U.S. shoppers' resilience despite higher prices<\/em><\/figcaption><\/figure>\n\n\n\n
Higher interest rates will encourage saving over spending in the months ahead and make the debt more costly, and companies that have a bigger credit or other loans with variable interest rates could be in a difficult situation. Higher borrowing costs will hurt corporate profits and discourage businesses from borrowing to invest in new projects, which can hurt economic activity and job creation. And, of course, the flare-up of geopolitical risks adds another headwind and increases tail risks for markets and economic activity.<\/p>\n\n\n\n
Investors are concerned that Israel's increasing retaliation against Hamas might lead to Iran's involvement in the conflict, potentially triggering global repercussions. However, their apprehension has mainly manifested through actions such as purchasing oil futures and divesting from Israeli assets. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n\n\n\n
Therefore, JPMorgan strategist Marko Kolanovic is adopting a defensive stance, maintaining underweight allocations in equities and cryptocurrencies. However, he recommends a boost in the allocation to gold because, during economic downturns, the value of gold may rise, providing a counterbalance to potential losses in other investments. Gold is often considered a safe-haven asset, especially in times of economic uncertainty or geopolitical instability, and investors usually turn to gold as a store of value when other assets are perceived to be risky.<\/p>\n","post_title":"JPMorgan Strategist Expects Most Of The Negative Effects Of Higher Rates \"Still To Come.\" What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jpmorgan-strategist-expects-most-of-the-negative-effects-of-higher-rates-still-to-come-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:22","post_modified_gmt":"2023-10-23 13:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n
Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n
Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n
Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n
However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n
At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n
The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n<\/figure>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
The EBA plans to diligently follow up on its findings by engaging in bilateral discussions with regulators and conducting peer reviews. This approach will ensure that the new objectives are effectively implemented and that the EU banking sector remains resilient in the face of future challenges.<\/p>\n","post_title":"European Banking Authority (EBA) Embraces Changes For 2024 Banking Sector Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-banking-authority-eba-embraces-changes-for-2024-banking-sector-oversight","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:38","post_modified_gmt":"2023-10-23 13:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13935","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13913,"post_author":"14","post_date":"2023-10-24 00:29:56","post_date_gmt":"2023-10-23 13:29:56","post_content":"\n
Shares on Wall Street weakened after data showed this Tuesday that U.S. retail sales increased more than expected in September, suggesting the economy ended the third quarter on a strong note. In September, U.S. retail sales exceeded expectations with a 0.7% increase, surpassing the anticipated 0.3% rise. Additionally, a separate report indicated that production at U.S. factories in September outpaced initial expectations, and because of this, investors worry that strength in consumer spending and production could force the Fed to keep interest rates higher for longer.<\/p>\n\n\n\n
Sam Stovall, chief investment strategist at CFRA Research, said that while almost nobody expects a November hike, it's becoming more of a coin toss whether the Fed will raise interest rates in December. JPMorgan strategist Marko Kolanovic anticipates that the majority of adverse outcomes resulting from elevated interest rates are yet to manifest. He highlights an upward trend in consumer loan delinquencies and corporate bankruptcies, suggesting that such trends are likely to persist unless there is a reduction in interest rates.<\/p>\n\n\n\nRetail sales rose in September, reflecting U.S. shoppers' resilience despite higher prices<\/em><\/figcaption><\/figure>\n\n\n\n
Higher interest rates will encourage saving over spending in the months ahead and make the debt more costly, and companies that have a bigger credit or other loans with variable interest rates could be in a difficult situation. Higher borrowing costs will hurt corporate profits and discourage businesses from borrowing to invest in new projects, which can hurt economic activity and job creation. And, of course, the flare-up of geopolitical risks adds another headwind and increases tail risks for markets and economic activity.<\/p>\n\n\n\n
Investors are concerned that Israel's increasing retaliation against Hamas might lead to Iran's involvement in the conflict, potentially triggering global repercussions. However, their apprehension has mainly manifested through actions such as purchasing oil futures and divesting from Israeli assets. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n\n\n\n
Therefore, JPMorgan strategist Marko Kolanovic is adopting a defensive stance, maintaining underweight allocations in equities and cryptocurrencies. However, he recommends a boost in the allocation to gold because, during economic downturns, the value of gold may rise, providing a counterbalance to potential losses in other investments. Gold is often considered a safe-haven asset, especially in times of economic uncertainty or geopolitical instability, and investors usually turn to gold as a store of value when other assets are perceived to be risky.<\/p>\n","post_title":"JPMorgan Strategist Expects Most Of The Negative Effects Of Higher Rates \"Still To Come.\" What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jpmorgan-strategist-expects-most-of-the-negative-effects-of-higher-rates-still-to-come-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:22","post_modified_gmt":"2023-10-23 13:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n
Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n
Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n
Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n
However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n
At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n
The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n<\/figure>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
The Basel Committee of global banking regulators has also acknowledged the need for stronger supervision. They emphasized that not only boards of banks but also supervisors need to enhance their vigilance, especially in the era of social media. Events like the collapse of Silicon Valley Bank have shown how social media posts can accelerate runs on deposits.<\/p>\n\n\n\n
The EBA plans to diligently follow up on its findings by engaging in bilateral discussions with regulators and conducting peer reviews. This approach will ensure that the new objectives are effectively implemented and that the EU banking sector remains resilient in the face of future challenges.<\/p>\n","post_title":"European Banking Authority (EBA) Embraces Changes For 2024 Banking Sector Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-banking-authority-eba-embraces-changes-for-2024-banking-sector-oversight","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:38","post_modified_gmt":"2023-10-23 13:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13935","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13913,"post_author":"14","post_date":"2023-10-24 00:29:56","post_date_gmt":"2023-10-23 13:29:56","post_content":"\n
Shares on Wall Street weakened after data showed this Tuesday that U.S. retail sales increased more than expected in September, suggesting the economy ended the third quarter on a strong note. In September, U.S. retail sales exceeded expectations with a 0.7% increase, surpassing the anticipated 0.3% rise. Additionally, a separate report indicated that production at U.S. factories in September outpaced initial expectations, and because of this, investors worry that strength in consumer spending and production could force the Fed to keep interest rates higher for longer.<\/p>\n\n\n\n
Sam Stovall, chief investment strategist at CFRA Research, said that while almost nobody expects a November hike, it's becoming more of a coin toss whether the Fed will raise interest rates in December. JPMorgan strategist Marko Kolanovic anticipates that the majority of adverse outcomes resulting from elevated interest rates are yet to manifest. He highlights an upward trend in consumer loan delinquencies and corporate bankruptcies, suggesting that such trends are likely to persist unless there is a reduction in interest rates.<\/p>\n\n\n\nRetail sales rose in September, reflecting U.S. shoppers' resilience despite higher prices<\/em><\/figcaption><\/figure>\n\n\n\n
Higher interest rates will encourage saving over spending in the months ahead and make the debt more costly, and companies that have a bigger credit or other loans with variable interest rates could be in a difficult situation. Higher borrowing costs will hurt corporate profits and discourage businesses from borrowing to invest in new projects, which can hurt economic activity and job creation. And, of course, the flare-up of geopolitical risks adds another headwind and increases tail risks for markets and economic activity.<\/p>\n\n\n\n
Investors are concerned that Israel's increasing retaliation against Hamas might lead to Iran's involvement in the conflict, potentially triggering global repercussions. However, their apprehension has mainly manifested through actions such as purchasing oil futures and divesting from Israeli assets. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n\n\n\n
Therefore, JPMorgan strategist Marko Kolanovic is adopting a defensive stance, maintaining underweight allocations in equities and cryptocurrencies. However, he recommends a boost in the allocation to gold because, during economic downturns, the value of gold may rise, providing a counterbalance to potential losses in other investments. Gold is often considered a safe-haven asset, especially in times of economic uncertainty or geopolitical instability, and investors usually turn to gold as a store of value when other assets are perceived to be risky.<\/p>\n","post_title":"JPMorgan Strategist Expects Most Of The Negative Effects Of Higher Rates \"Still To Come.\" What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jpmorgan-strategist-expects-most-of-the-negative-effects-of-higher-rates-still-to-come-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:22","post_modified_gmt":"2023-10-23 13:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n
Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n
Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n
Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n
However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n
At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n
The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n<\/figure>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
The events that transpired earlier in the year, which led to the downfall of several U.S. banks and the takeover of Credit Suisse by UBS, have raised significant questions about the effectiveness of rules and the quality of supervision. The EBA's new approach is a clear response to these challenges and aims to prevent future financial crises.<\/p>\n\n\n\n
The Basel Committee of global banking regulators has also acknowledged the need for stronger supervision. They emphasized that not only boards of banks but also supervisors need to enhance their vigilance, especially in the era of social media. Events like the collapse of Silicon Valley Bank have shown how social media posts can accelerate runs on deposits.<\/p>\n\n\n\n
The EBA plans to diligently follow up on its findings by engaging in bilateral discussions with regulators and conducting peer reviews. This approach will ensure that the new objectives are effectively implemented and that the EU banking sector remains resilient in the face of future challenges.<\/p>\n","post_title":"European Banking Authority (EBA) Embraces Changes For 2024 Banking Sector Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-banking-authority-eba-embraces-changes-for-2024-banking-sector-oversight","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:38","post_modified_gmt":"2023-10-23 13:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13935","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13913,"post_author":"14","post_date":"2023-10-24 00:29:56","post_date_gmt":"2023-10-23 13:29:56","post_content":"\n
Shares on Wall Street weakened after data showed this Tuesday that U.S. retail sales increased more than expected in September, suggesting the economy ended the third quarter on a strong note. In September, U.S. retail sales exceeded expectations with a 0.7% increase, surpassing the anticipated 0.3% rise. Additionally, a separate report indicated that production at U.S. factories in September outpaced initial expectations, and because of this, investors worry that strength in consumer spending and production could force the Fed to keep interest rates higher for longer.<\/p>\n\n\n\n
Sam Stovall, chief investment strategist at CFRA Research, said that while almost nobody expects a November hike, it's becoming more of a coin toss whether the Fed will raise interest rates in December. JPMorgan strategist Marko Kolanovic anticipates that the majority of adverse outcomes resulting from elevated interest rates are yet to manifest. He highlights an upward trend in consumer loan delinquencies and corporate bankruptcies, suggesting that such trends are likely to persist unless there is a reduction in interest rates.<\/p>\n\n\n\nRetail sales rose in September, reflecting U.S. shoppers' resilience despite higher prices<\/em><\/figcaption><\/figure>\n\n\n\n
Higher interest rates will encourage saving over spending in the months ahead and make the debt more costly, and companies that have a bigger credit or other loans with variable interest rates could be in a difficult situation. Higher borrowing costs will hurt corporate profits and discourage businesses from borrowing to invest in new projects, which can hurt economic activity and job creation. And, of course, the flare-up of geopolitical risks adds another headwind and increases tail risks for markets and economic activity.<\/p>\n\n\n\n
Investors are concerned that Israel's increasing retaliation against Hamas might lead to Iran's involvement in the conflict, potentially triggering global repercussions. However, their apprehension has mainly manifested through actions such as purchasing oil futures and divesting from Israeli assets. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n\n\n\n
Therefore, JPMorgan strategist Marko Kolanovic is adopting a defensive stance, maintaining underweight allocations in equities and cryptocurrencies. However, he recommends a boost in the allocation to gold because, during economic downturns, the value of gold may rise, providing a counterbalance to potential losses in other investments. Gold is often considered a safe-haven asset, especially in times of economic uncertainty or geopolitical instability, and investors usually turn to gold as a store of value when other assets are perceived to be risky.<\/p>\n","post_title":"JPMorgan Strategist Expects Most Of The Negative Effects Of Higher Rates \"Still To Come.\" What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jpmorgan-strategist-expects-most-of-the-negative-effects-of-higher-rates-still-to-come-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:22","post_modified_gmt":"2023-10-23 13:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n
Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n
Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n
Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n
However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n
At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n
The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n<\/figure>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
Among the EU regulators, the European Central Bank (ECB) plays a pivotal role as the overseer of the Eurozone's largest lenders. Its influence will be crucial in implementing the EBA's new objectives and ensuring that the banking sector remains robust.<\/p>\n\n\n\n
The events that transpired earlier in the year, which led to the downfall of several U.S. banks and the takeover of Credit Suisse by UBS, have raised significant questions about the effectiveness of rules and the quality of supervision. The EBA's new approach is a clear response to these challenges and aims to prevent future financial crises.<\/p>\n\n\n\n
The Basel Committee of global banking regulators has also acknowledged the need for stronger supervision. They emphasized that not only boards of banks but also supervisors need to enhance their vigilance, especially in the era of social media. Events like the collapse of Silicon Valley Bank have shown how social media posts can accelerate runs on deposits.<\/p>\n\n\n\n
The EBA plans to diligently follow up on its findings by engaging in bilateral discussions with regulators and conducting peer reviews. This approach will ensure that the new objectives are effectively implemented and that the EU banking sector remains resilient in the face of future challenges.<\/p>\n","post_title":"European Banking Authority (EBA) Embraces Changes For 2024 Banking Sector Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-banking-authority-eba-embraces-changes-for-2024-banking-sector-oversight","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:38","post_modified_gmt":"2023-10-23 13:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13935","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13913,"post_author":"14","post_date":"2023-10-24 00:29:56","post_date_gmt":"2023-10-23 13:29:56","post_content":"\n
Shares on Wall Street weakened after data showed this Tuesday that U.S. retail sales increased more than expected in September, suggesting the economy ended the third quarter on a strong note. In September, U.S. retail sales exceeded expectations with a 0.7% increase, surpassing the anticipated 0.3% rise. Additionally, a separate report indicated that production at U.S. factories in September outpaced initial expectations, and because of this, investors worry that strength in consumer spending and production could force the Fed to keep interest rates higher for longer.<\/p>\n\n\n\n
Sam Stovall, chief investment strategist at CFRA Research, said that while almost nobody expects a November hike, it's becoming more of a coin toss whether the Fed will raise interest rates in December. JPMorgan strategist Marko Kolanovic anticipates that the majority of adverse outcomes resulting from elevated interest rates are yet to manifest. He highlights an upward trend in consumer loan delinquencies and corporate bankruptcies, suggesting that such trends are likely to persist unless there is a reduction in interest rates.<\/p>\n\n\n\nRetail sales rose in September, reflecting U.S. shoppers' resilience despite higher prices<\/em><\/figcaption><\/figure>\n\n\n\n
Higher interest rates will encourage saving over spending in the months ahead and make the debt more costly, and companies that have a bigger credit or other loans with variable interest rates could be in a difficult situation. Higher borrowing costs will hurt corporate profits and discourage businesses from borrowing to invest in new projects, which can hurt economic activity and job creation. And, of course, the flare-up of geopolitical risks adds another headwind and increases tail risks for markets and economic activity.<\/p>\n\n\n\n
Investors are concerned that Israel's increasing retaliation against Hamas might lead to Iran's involvement in the conflict, potentially triggering global repercussions. However, their apprehension has mainly manifested through actions such as purchasing oil futures and divesting from Israeli assets. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n\n\n\n
Therefore, JPMorgan strategist Marko Kolanovic is adopting a defensive stance, maintaining underweight allocations in equities and cryptocurrencies. However, he recommends a boost in the allocation to gold because, during economic downturns, the value of gold may rise, providing a counterbalance to potential losses in other investments. Gold is often considered a safe-haven asset, especially in times of economic uncertainty or geopolitical instability, and investors usually turn to gold as a store of value when other assets are perceived to be risky.<\/p>\n","post_title":"JPMorgan Strategist Expects Most Of The Negative Effects Of Higher Rates \"Still To Come.\" What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jpmorgan-strategist-expects-most-of-the-negative-effects-of-higher-rates-still-to-come-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:22","post_modified_gmt":"2023-10-23 13:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n
Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n
Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n
Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n
However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n
At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n
The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n<\/figure>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
Recent market turbulence, such as the collapse of U.S. lenders and the forced takeover of Credit Suisse by UBS, has underscored the need for banks to remain resilient in the face of economic shocks. Regulators will closely examine how EU banks recover from unexpected events and maintain their stability.<\/p>\n\n\n\n
Among the EU regulators, the European Central Bank (ECB) plays a pivotal role as the overseer of the Eurozone's largest lenders. Its influence will be crucial in implementing the EBA's new objectives and ensuring that the banking sector remains robust.<\/p>\n\n\n\n
The events that transpired earlier in the year, which led to the downfall of several U.S. banks and the takeover of Credit Suisse by UBS, have raised significant questions about the effectiveness of rules and the quality of supervision. The EBA's new approach is a clear response to these challenges and aims to prevent future financial crises.<\/p>\n\n\n\n
The Basel Committee of global banking regulators has also acknowledged the need for stronger supervision. They emphasized that not only boards of banks but also supervisors need to enhance their vigilance, especially in the era of social media. Events like the collapse of Silicon Valley Bank have shown how social media posts can accelerate runs on deposits.<\/p>\n\n\n\n
The EBA plans to diligently follow up on its findings by engaging in bilateral discussions with regulators and conducting peer reviews. This approach will ensure that the new objectives are effectively implemented and that the EU banking sector remains resilient in the face of future challenges.<\/p>\n","post_title":"European Banking Authority (EBA) Embraces Changes For 2024 Banking Sector Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-banking-authority-eba-embraces-changes-for-2024-banking-sector-oversight","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:38","post_modified_gmt":"2023-10-23 13:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13935","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13913,"post_author":"14","post_date":"2023-10-24 00:29:56","post_date_gmt":"2023-10-23 13:29:56","post_content":"\n
Shares on Wall Street weakened after data showed this Tuesday that U.S. retail sales increased more than expected in September, suggesting the economy ended the third quarter on a strong note. In September, U.S. retail sales exceeded expectations with a 0.7% increase, surpassing the anticipated 0.3% rise. Additionally, a separate report indicated that production at U.S. factories in September outpaced initial expectations, and because of this, investors worry that strength in consumer spending and production could force the Fed to keep interest rates higher for longer.<\/p>\n\n\n\n
Sam Stovall, chief investment strategist at CFRA Research, said that while almost nobody expects a November hike, it's becoming more of a coin toss whether the Fed will raise interest rates in December. JPMorgan strategist Marko Kolanovic anticipates that the majority of adverse outcomes resulting from elevated interest rates are yet to manifest. He highlights an upward trend in consumer loan delinquencies and corporate bankruptcies, suggesting that such trends are likely to persist unless there is a reduction in interest rates.<\/p>\n\n\n\nRetail sales rose in September, reflecting U.S. shoppers' resilience despite higher prices<\/em><\/figcaption><\/figure>\n\n\n\n
Higher interest rates will encourage saving over spending in the months ahead and make the debt more costly, and companies that have a bigger credit or other loans with variable interest rates could be in a difficult situation. Higher borrowing costs will hurt corporate profits and discourage businesses from borrowing to invest in new projects, which can hurt economic activity and job creation. And, of course, the flare-up of geopolitical risks adds another headwind and increases tail risks for markets and economic activity.<\/p>\n\n\n\n
Investors are concerned that Israel's increasing retaliation against Hamas might lead to Iran's involvement in the conflict, potentially triggering global repercussions. However, their apprehension has mainly manifested through actions such as purchasing oil futures and divesting from Israeli assets. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n\n\n\n
Therefore, JPMorgan strategist Marko Kolanovic is adopting a defensive stance, maintaining underweight allocations in equities and cryptocurrencies. However, he recommends a boost in the allocation to gold because, during economic downturns, the value of gold may rise, providing a counterbalance to potential losses in other investments. Gold is often considered a safe-haven asset, especially in times of economic uncertainty or geopolitical instability, and investors usually turn to gold as a store of value when other assets are perceived to be risky.<\/p>\n","post_title":"JPMorgan Strategist Expects Most Of The Negative Effects Of Higher Rates \"Still To Come.\" What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jpmorgan-strategist-expects-most-of-the-negative-effects-of-higher-rates-still-to-come-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:22","post_modified_gmt":"2023-10-23 13:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n
Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n
Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n
Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n
However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n
At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n
The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n<\/figure>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
Recent market turbulence, such as the collapse of U.S. lenders and the forced takeover of Credit Suisse by UBS, has underscored the need for banks to remain resilient in the face of economic shocks. Regulators will closely examine how EU banks recover from unexpected events and maintain their stability.<\/p>\n\n\n\n
Among the EU regulators, the European Central Bank (ECB) plays a pivotal role as the overseer of the Eurozone's largest lenders. Its influence will be crucial in implementing the EBA's new objectives and ensuring that the banking sector remains robust.<\/p>\n\n\n\n
The events that transpired earlier in the year, which led to the downfall of several U.S. banks and the takeover of Credit Suisse by UBS, have raised significant questions about the effectiveness of rules and the quality of supervision. The EBA's new approach is a clear response to these challenges and aims to prevent future financial crises.<\/p>\n\n\n\n
The Basel Committee of global banking regulators has also acknowledged the need for stronger supervision. They emphasized that not only boards of banks but also supervisors need to enhance their vigilance, especially in the era of social media. Events like the collapse of Silicon Valley Bank have shown how social media posts can accelerate runs on deposits.<\/p>\n\n\n\n
The EBA plans to diligently follow up on its findings by engaging in bilateral discussions with regulators and conducting peer reviews. This approach will ensure that the new objectives are effectively implemented and that the EU banking sector remains resilient in the face of future challenges.<\/p>\n","post_title":"European Banking Authority (EBA) Embraces Changes For 2024 Banking Sector Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-banking-authority-eba-embraces-changes-for-2024-banking-sector-oversight","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:38","post_modified_gmt":"2023-10-23 13:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13935","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13913,"post_author":"14","post_date":"2023-10-24 00:29:56","post_date_gmt":"2023-10-23 13:29:56","post_content":"\n
Shares on Wall Street weakened after data showed this Tuesday that U.S. retail sales increased more than expected in September, suggesting the economy ended the third quarter on a strong note. In September, U.S. retail sales exceeded expectations with a 0.7% increase, surpassing the anticipated 0.3% rise. Additionally, a separate report indicated that production at U.S. factories in September outpaced initial expectations, and because of this, investors worry that strength in consumer spending and production could force the Fed to keep interest rates higher for longer.<\/p>\n\n\n\n
Sam Stovall, chief investment strategist at CFRA Research, said that while almost nobody expects a November hike, it's becoming more of a coin toss whether the Fed will raise interest rates in December. JPMorgan strategist Marko Kolanovic anticipates that the majority of adverse outcomes resulting from elevated interest rates are yet to manifest. He highlights an upward trend in consumer loan delinquencies and corporate bankruptcies, suggesting that such trends are likely to persist unless there is a reduction in interest rates.<\/p>\n\n\n\nRetail sales rose in September, reflecting U.S. shoppers' resilience despite higher prices<\/em><\/figcaption><\/figure>\n\n\n\n
Higher interest rates will encourage saving over spending in the months ahead and make the debt more costly, and companies that have a bigger credit or other loans with variable interest rates could be in a difficult situation. Higher borrowing costs will hurt corporate profits and discourage businesses from borrowing to invest in new projects, which can hurt economic activity and job creation. And, of course, the flare-up of geopolitical risks adds another headwind and increases tail risks for markets and economic activity.<\/p>\n\n\n\n
Investors are concerned that Israel's increasing retaliation against Hamas might lead to Iran's involvement in the conflict, potentially triggering global repercussions. However, their apprehension has mainly manifested through actions such as purchasing oil futures and divesting from Israeli assets. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n\n\n\n
Therefore, JPMorgan strategist Marko Kolanovic is adopting a defensive stance, maintaining underweight allocations in equities and cryptocurrencies. However, he recommends a boost in the allocation to gold because, during economic downturns, the value of gold may rise, providing a counterbalance to potential losses in other investments. Gold is often considered a safe-haven asset, especially in times of economic uncertainty or geopolitical instability, and investors usually turn to gold as a store of value when other assets are perceived to be risky.<\/p>\n","post_title":"JPMorgan Strategist Expects Most Of The Negative Effects Of Higher Rates \"Still To Come.\" What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jpmorgan-strategist-expects-most-of-the-negative-effects-of-higher-rates-still-to-come-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:22","post_modified_gmt":"2023-10-23 13:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n
Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n
Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n
Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n
However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n
At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n
The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n<\/figure>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
The fluctuating interest rates in today's economic landscape can significantly affect banks' business models. The EBA will assess how these rate changes impact the profitability and sustainability of financial institutions within the EU.<\/p>\n\n\n\n
Resilience in the Face of Shocks<\/h2>\n\n\n\n
Recent market turbulence, such as the collapse of U.S. lenders and the forced takeover of Credit Suisse by UBS, has underscored the need for banks to remain resilient in the face of economic shocks. Regulators will closely examine how EU banks recover from unexpected events and maintain their stability.<\/p>\n\n\n\n
Among the EU regulators, the European Central Bank (ECB) plays a pivotal role as the overseer of the Eurozone's largest lenders. Its influence will be crucial in implementing the EBA's new objectives and ensuring that the banking sector remains robust.<\/p>\n\n\n\n
The events that transpired earlier in the year, which led to the downfall of several U.S. banks and the takeover of Credit Suisse by UBS, have raised significant questions about the effectiveness of rules and the quality of supervision. The EBA's new approach is a clear response to these challenges and aims to prevent future financial crises.<\/p>\n\n\n\n
The Basel Committee of global banking regulators has also acknowledged the need for stronger supervision. They emphasized that not only boards of banks but also supervisors need to enhance their vigilance, especially in the era of social media. Events like the collapse of Silicon Valley Bank have shown how social media posts can accelerate runs on deposits.<\/p>\n\n\n\n
The EBA plans to diligently follow up on its findings by engaging in bilateral discussions with regulators and conducting peer reviews. This approach will ensure that the new objectives are effectively implemented and that the EU banking sector remains resilient in the face of future challenges.<\/p>\n","post_title":"European Banking Authority (EBA) Embraces Changes For 2024 Banking Sector Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-banking-authority-eba-embraces-changes-for-2024-banking-sector-oversight","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:38","post_modified_gmt":"2023-10-23 13:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13935","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13913,"post_author":"14","post_date":"2023-10-24 00:29:56","post_date_gmt":"2023-10-23 13:29:56","post_content":"\n
Shares on Wall Street weakened after data showed this Tuesday that U.S. retail sales increased more than expected in September, suggesting the economy ended the third quarter on a strong note. In September, U.S. retail sales exceeded expectations with a 0.7% increase, surpassing the anticipated 0.3% rise. Additionally, a separate report indicated that production at U.S. factories in September outpaced initial expectations, and because of this, investors worry that strength in consumer spending and production could force the Fed to keep interest rates higher for longer.<\/p>\n\n\n\n
Sam Stovall, chief investment strategist at CFRA Research, said that while almost nobody expects a November hike, it's becoming more of a coin toss whether the Fed will raise interest rates in December. JPMorgan strategist Marko Kolanovic anticipates that the majority of adverse outcomes resulting from elevated interest rates are yet to manifest. He highlights an upward trend in consumer loan delinquencies and corporate bankruptcies, suggesting that such trends are likely to persist unless there is a reduction in interest rates.<\/p>\n\n\n\nRetail sales rose in September, reflecting U.S. shoppers' resilience despite higher prices<\/em><\/figcaption><\/figure>\n\n\n\n
Higher interest rates will encourage saving over spending in the months ahead and make the debt more costly, and companies that have a bigger credit or other loans with variable interest rates could be in a difficult situation. Higher borrowing costs will hurt corporate profits and discourage businesses from borrowing to invest in new projects, which can hurt economic activity and job creation. And, of course, the flare-up of geopolitical risks adds another headwind and increases tail risks for markets and economic activity.<\/p>\n\n\n\n
Investors are concerned that Israel's increasing retaliation against Hamas might lead to Iran's involvement in the conflict, potentially triggering global repercussions. However, their apprehension has mainly manifested through actions such as purchasing oil futures and divesting from Israeli assets. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n\n\n\n
Therefore, JPMorgan strategist Marko Kolanovic is adopting a defensive stance, maintaining underweight allocations in equities and cryptocurrencies. However, he recommends a boost in the allocation to gold because, during economic downturns, the value of gold may rise, providing a counterbalance to potential losses in other investments. Gold is often considered a safe-haven asset, especially in times of economic uncertainty or geopolitical instability, and investors usually turn to gold as a store of value when other assets are perceived to be risky.<\/p>\n","post_title":"JPMorgan Strategist Expects Most Of The Negative Effects Of Higher Rates \"Still To Come.\" What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jpmorgan-strategist-expects-most-of-the-negative-effects-of-higher-rates-still-to-come-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:22","post_modified_gmt":"2023-10-23 13:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n
Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n
Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n
Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n
However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n
At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n
The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n<\/figure>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
The fluctuating interest rates in today's economic landscape can significantly affect banks' business models. The EBA will assess how these rate changes impact the profitability and sustainability of financial institutions within the EU.<\/p>\n\n\n\n
Resilience in the Face of Shocks<\/h2>\n\n\n\n
Recent market turbulence, such as the collapse of U.S. lenders and the forced takeover of Credit Suisse by UBS, has underscored the need for banks to remain resilient in the face of economic shocks. Regulators will closely examine how EU banks recover from unexpected events and maintain their stability.<\/p>\n\n\n\n
Among the EU regulators, the European Central Bank (ECB) plays a pivotal role as the overseer of the Eurozone's largest lenders. Its influence will be crucial in implementing the EBA's new objectives and ensuring that the banking sector remains robust.<\/p>\n\n\n\n
The events that transpired earlier in the year, which led to the downfall of several U.S. banks and the takeover of Credit Suisse by UBS, have raised significant questions about the effectiveness of rules and the quality of supervision. The EBA's new approach is a clear response to these challenges and aims to prevent future financial crises.<\/p>\n\n\n\n
The Basel Committee of global banking regulators has also acknowledged the need for stronger supervision. They emphasized that not only boards of banks but also supervisors need to enhance their vigilance, especially in the era of social media. Events like the collapse of Silicon Valley Bank have shown how social media posts can accelerate runs on deposits.<\/p>\n\n\n\n
The EBA plans to diligently follow up on its findings by engaging in bilateral discussions with regulators and conducting peer reviews. This approach will ensure that the new objectives are effectively implemented and that the EU banking sector remains resilient in the face of future challenges.<\/p>\n","post_title":"European Banking Authority (EBA) Embraces Changes For 2024 Banking Sector Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-banking-authority-eba-embraces-changes-for-2024-banking-sector-oversight","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:38","post_modified_gmt":"2023-10-23 13:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13935","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13913,"post_author":"14","post_date":"2023-10-24 00:29:56","post_date_gmt":"2023-10-23 13:29:56","post_content":"\n
Shares on Wall Street weakened after data showed this Tuesday that U.S. retail sales increased more than expected in September, suggesting the economy ended the third quarter on a strong note. In September, U.S. retail sales exceeded expectations with a 0.7% increase, surpassing the anticipated 0.3% rise. Additionally, a separate report indicated that production at U.S. factories in September outpaced initial expectations, and because of this, investors worry that strength in consumer spending and production could force the Fed to keep interest rates higher for longer.<\/p>\n\n\n\n
Sam Stovall, chief investment strategist at CFRA Research, said that while almost nobody expects a November hike, it's becoming more of a coin toss whether the Fed will raise interest rates in December. JPMorgan strategist Marko Kolanovic anticipates that the majority of adverse outcomes resulting from elevated interest rates are yet to manifest. He highlights an upward trend in consumer loan delinquencies and corporate bankruptcies, suggesting that such trends are likely to persist unless there is a reduction in interest rates.<\/p>\n\n\n\nRetail sales rose in September, reflecting U.S. shoppers' resilience despite higher prices<\/em><\/figcaption><\/figure>\n\n\n\n
Higher interest rates will encourage saving over spending in the months ahead and make the debt more costly, and companies that have a bigger credit or other loans with variable interest rates could be in a difficult situation. Higher borrowing costs will hurt corporate profits and discourage businesses from borrowing to invest in new projects, which can hurt economic activity and job creation. And, of course, the flare-up of geopolitical risks adds another headwind and increases tail risks for markets and economic activity.<\/p>\n\n\n\n
Investors are concerned that Israel's increasing retaliation against Hamas might lead to Iran's involvement in the conflict, potentially triggering global repercussions. However, their apprehension has mainly manifested through actions such as purchasing oil futures and divesting from Israeli assets. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n\n\n\n
Therefore, JPMorgan strategist Marko Kolanovic is adopting a defensive stance, maintaining underweight allocations in equities and cryptocurrencies. However, he recommends a boost in the allocation to gold because, during economic downturns, the value of gold may rise, providing a counterbalance to potential losses in other investments. Gold is often considered a safe-haven asset, especially in times of economic uncertainty or geopolitical instability, and investors usually turn to gold as a store of value when other assets are perceived to be risky.<\/p>\n","post_title":"JPMorgan Strategist Expects Most Of The Negative Effects Of Higher Rates \"Still To Come.\" What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jpmorgan-strategist-expects-most-of-the-negative-effects-of-higher-rates-still-to-come-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:22","post_modified_gmt":"2023-10-23 13:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n
Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n
Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n
Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n
However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n
At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n
The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n<\/figure>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
Maintaining adequate liquidity and managing funding risks have taken on even greater importance following the events that unfolded earlier this year. The EBA intends to closely scrutinize how EU banks manage their liquidity to ensure they are better equipped to handle unforeseen challenges.<\/p>\n\n\n\n
Impact of Higher Interest Rates<\/h2>\n\n\n\n
The fluctuating interest rates in today's economic landscape can significantly affect banks' business models. The EBA will assess how these rate changes impact the profitability and sustainability of financial institutions within the EU.<\/p>\n\n\n\n
Resilience in the Face of Shocks<\/h2>\n\n\n\n
Recent market turbulence, such as the collapse of U.S. lenders and the forced takeover of Credit Suisse by UBS, has underscored the need for banks to remain resilient in the face of economic shocks. Regulators will closely examine how EU banks recover from unexpected events and maintain their stability.<\/p>\n\n\n\n
Among the EU regulators, the European Central Bank (ECB) plays a pivotal role as the overseer of the Eurozone's largest lenders. Its influence will be crucial in implementing the EBA's new objectives and ensuring that the banking sector remains robust.<\/p>\n\n\n\n
The events that transpired earlier in the year, which led to the downfall of several U.S. banks and the takeover of Credit Suisse by UBS, have raised significant questions about the effectiveness of rules and the quality of supervision. The EBA's new approach is a clear response to these challenges and aims to prevent future financial crises.<\/p>\n\n\n\n
The Basel Committee of global banking regulators has also acknowledged the need for stronger supervision. They emphasized that not only boards of banks but also supervisors need to enhance their vigilance, especially in the era of social media. Events like the collapse of Silicon Valley Bank have shown how social media posts can accelerate runs on deposits.<\/p>\n\n\n\n
The EBA plans to diligently follow up on its findings by engaging in bilateral discussions with regulators and conducting peer reviews. This approach will ensure that the new objectives are effectively implemented and that the EU banking sector remains resilient in the face of future challenges.<\/p>\n","post_title":"European Banking Authority (EBA) Embraces Changes For 2024 Banking Sector Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-banking-authority-eba-embraces-changes-for-2024-banking-sector-oversight","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:38","post_modified_gmt":"2023-10-23 13:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13935","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13913,"post_author":"14","post_date":"2023-10-24 00:29:56","post_date_gmt":"2023-10-23 13:29:56","post_content":"\n
Shares on Wall Street weakened after data showed this Tuesday that U.S. retail sales increased more than expected in September, suggesting the economy ended the third quarter on a strong note. In September, U.S. retail sales exceeded expectations with a 0.7% increase, surpassing the anticipated 0.3% rise. Additionally, a separate report indicated that production at U.S. factories in September outpaced initial expectations, and because of this, investors worry that strength in consumer spending and production could force the Fed to keep interest rates higher for longer.<\/p>\n\n\n\n
Sam Stovall, chief investment strategist at CFRA Research, said that while almost nobody expects a November hike, it's becoming more of a coin toss whether the Fed will raise interest rates in December. JPMorgan strategist Marko Kolanovic anticipates that the majority of adverse outcomes resulting from elevated interest rates are yet to manifest. He highlights an upward trend in consumer loan delinquencies and corporate bankruptcies, suggesting that such trends are likely to persist unless there is a reduction in interest rates.<\/p>\n\n\n\nRetail sales rose in September, reflecting U.S. shoppers' resilience despite higher prices<\/em><\/figcaption><\/figure>\n\n\n\n
Higher interest rates will encourage saving over spending in the months ahead and make the debt more costly, and companies that have a bigger credit or other loans with variable interest rates could be in a difficult situation. Higher borrowing costs will hurt corporate profits and discourage businesses from borrowing to invest in new projects, which can hurt economic activity and job creation. And, of course, the flare-up of geopolitical risks adds another headwind and increases tail risks for markets and economic activity.<\/p>\n\n\n\n
Investors are concerned that Israel's increasing retaliation against Hamas might lead to Iran's involvement in the conflict, potentially triggering global repercussions. However, their apprehension has mainly manifested through actions such as purchasing oil futures and divesting from Israeli assets. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n\n\n\n
Therefore, JPMorgan strategist Marko Kolanovic is adopting a defensive stance, maintaining underweight allocations in equities and cryptocurrencies. However, he recommends a boost in the allocation to gold because, during economic downturns, the value of gold may rise, providing a counterbalance to potential losses in other investments. Gold is often considered a safe-haven asset, especially in times of economic uncertainty or geopolitical instability, and investors usually turn to gold as a store of value when other assets are perceived to be risky.<\/p>\n","post_title":"JPMorgan Strategist Expects Most Of The Negative Effects Of Higher Rates \"Still To Come.\" What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jpmorgan-strategist-expects-most-of-the-negative-effects-of-higher-rates-still-to-come-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:22","post_modified_gmt":"2023-10-23 13:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n
Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n
Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n
Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n
However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n
At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n
The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n<\/figure>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
Maintaining adequate liquidity and managing funding risks have taken on even greater importance following the events that unfolded earlier this year. The EBA intends to closely scrutinize how EU banks manage their liquidity to ensure they are better equipped to handle unforeseen challenges.<\/p>\n\n\n\n
Impact of Higher Interest Rates<\/h2>\n\n\n\n
The fluctuating interest rates in today's economic landscape can significantly affect banks' business models. The EBA will assess how these rate changes impact the profitability and sustainability of financial institutions within the EU.<\/p>\n\n\n\n
Resilience in the Face of Shocks<\/h2>\n\n\n\n
Recent market turbulence, such as the collapse of U.S. lenders and the forced takeover of Credit Suisse by UBS, has underscored the need for banks to remain resilient in the face of economic shocks. Regulators will closely examine how EU banks recover from unexpected events and maintain their stability.<\/p>\n\n\n\n
Among the EU regulators, the European Central Bank (ECB) plays a pivotal role as the overseer of the Eurozone's largest lenders. Its influence will be crucial in implementing the EBA's new objectives and ensuring that the banking sector remains robust.<\/p>\n\n\n\n
The events that transpired earlier in the year, which led to the downfall of several U.S. banks and the takeover of Credit Suisse by UBS, have raised significant questions about the effectiveness of rules and the quality of supervision. The EBA's new approach is a clear response to these challenges and aims to prevent future financial crises.<\/p>\n\n\n\n
The Basel Committee of global banking regulators has also acknowledged the need for stronger supervision. They emphasized that not only boards of banks but also supervisors need to enhance their vigilance, especially in the era of social media. Events like the collapse of Silicon Valley Bank have shown how social media posts can accelerate runs on deposits.<\/p>\n\n\n\n
The EBA plans to diligently follow up on its findings by engaging in bilateral discussions with regulators and conducting peer reviews. This approach will ensure that the new objectives are effectively implemented and that the EU banking sector remains resilient in the face of future challenges.<\/p>\n","post_title":"European Banking Authority (EBA) Embraces Changes For 2024 Banking Sector Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-banking-authority-eba-embraces-changes-for-2024-banking-sector-oversight","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:38","post_modified_gmt":"2023-10-23 13:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13935","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13913,"post_author":"14","post_date":"2023-10-24 00:29:56","post_date_gmt":"2023-10-23 13:29:56","post_content":"\n
Shares on Wall Street weakened after data showed this Tuesday that U.S. retail sales increased more than expected in September, suggesting the economy ended the third quarter on a strong note. In September, U.S. retail sales exceeded expectations with a 0.7% increase, surpassing the anticipated 0.3% rise. Additionally, a separate report indicated that production at U.S. factories in September outpaced initial expectations, and because of this, investors worry that strength in consumer spending and production could force the Fed to keep interest rates higher for longer.<\/p>\n\n\n\n
Sam Stovall, chief investment strategist at CFRA Research, said that while almost nobody expects a November hike, it's becoming more of a coin toss whether the Fed will raise interest rates in December. JPMorgan strategist Marko Kolanovic anticipates that the majority of adverse outcomes resulting from elevated interest rates are yet to manifest. He highlights an upward trend in consumer loan delinquencies and corporate bankruptcies, suggesting that such trends are likely to persist unless there is a reduction in interest rates.<\/p>\n\n\n\nRetail sales rose in September, reflecting U.S. shoppers' resilience despite higher prices<\/em><\/figcaption><\/figure>\n\n\n\n
Higher interest rates will encourage saving over spending in the months ahead and make the debt more costly, and companies that have a bigger credit or other loans with variable interest rates could be in a difficult situation. Higher borrowing costs will hurt corporate profits and discourage businesses from borrowing to invest in new projects, which can hurt economic activity and job creation. And, of course, the flare-up of geopolitical risks adds another headwind and increases tail risks for markets and economic activity.<\/p>\n\n\n\n
Investors are concerned that Israel's increasing retaliation against Hamas might lead to Iran's involvement in the conflict, potentially triggering global repercussions. However, their apprehension has mainly manifested through actions such as purchasing oil futures and divesting from Israeli assets. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n\n\n\n
Therefore, JPMorgan strategist Marko Kolanovic is adopting a defensive stance, maintaining underweight allocations in equities and cryptocurrencies. However, he recommends a boost in the allocation to gold because, during economic downturns, the value of gold may rise, providing a counterbalance to potential losses in other investments. Gold is often considered a safe-haven asset, especially in times of economic uncertainty or geopolitical instability, and investors usually turn to gold as a store of value when other assets are perceived to be risky.<\/p>\n","post_title":"JPMorgan Strategist Expects Most Of The Negative Effects Of Higher Rates \"Still To Come.\" What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jpmorgan-strategist-expects-most-of-the-negative-effects-of-higher-rates-still-to-come-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:22","post_modified_gmt":"2023-10-23 13:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n
Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n
Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n
Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n
However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n
At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n
The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n<\/figure>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
While the EBA has traditionally guided banking regulators across the EU's 27 member states, the 2024 directive comes with a fresh perspective. It emphasizes three critical areas of concern:<\/p>\n\n\n\n
Liquidity and Funding Risks<\/h2>\n\n\n\n
Maintaining adequate liquidity and managing funding risks have taken on even greater importance following the events that unfolded earlier this year. The EBA intends to closely scrutinize how EU banks manage their liquidity to ensure they are better equipped to handle unforeseen challenges.<\/p>\n\n\n\n
Impact of Higher Interest Rates<\/h2>\n\n\n\n
The fluctuating interest rates in today's economic landscape can significantly affect banks' business models. The EBA will assess how these rate changes impact the profitability and sustainability of financial institutions within the EU.<\/p>\n\n\n\n
Resilience in the Face of Shocks<\/h2>\n\n\n\n
Recent market turbulence, such as the collapse of U.S. lenders and the forced takeover of Credit Suisse by UBS, has underscored the need for banks to remain resilient in the face of economic shocks. Regulators will closely examine how EU banks recover from unexpected events and maintain their stability.<\/p>\n\n\n\n
Among the EU regulators, the European Central Bank (ECB) plays a pivotal role as the overseer of the Eurozone's largest lenders. Its influence will be crucial in implementing the EBA's new objectives and ensuring that the banking sector remains robust.<\/p>\n\n\n\n
The events that transpired earlier in the year, which led to the downfall of several U.S. banks and the takeover of Credit Suisse by UBS, have raised significant questions about the effectiveness of rules and the quality of supervision. The EBA's new approach is a clear response to these challenges and aims to prevent future financial crises.<\/p>\n\n\n\n
The Basel Committee of global banking regulators has also acknowledged the need for stronger supervision. They emphasized that not only boards of banks but also supervisors need to enhance their vigilance, especially in the era of social media. Events like the collapse of Silicon Valley Bank have shown how social media posts can accelerate runs on deposits.<\/p>\n\n\n\n
The EBA plans to diligently follow up on its findings by engaging in bilateral discussions with regulators and conducting peer reviews. This approach will ensure that the new objectives are effectively implemented and that the EU banking sector remains resilient in the face of future challenges.<\/p>\n","post_title":"European Banking Authority (EBA) Embraces Changes For 2024 Banking Sector Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-banking-authority-eba-embraces-changes-for-2024-banking-sector-oversight","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:38","post_modified_gmt":"2023-10-23 13:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13935","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13913,"post_author":"14","post_date":"2023-10-24 00:29:56","post_date_gmt":"2023-10-23 13:29:56","post_content":"\n
Shares on Wall Street weakened after data showed this Tuesday that U.S. retail sales increased more than expected in September, suggesting the economy ended the third quarter on a strong note. In September, U.S. retail sales exceeded expectations with a 0.7% increase, surpassing the anticipated 0.3% rise. Additionally, a separate report indicated that production at U.S. factories in September outpaced initial expectations, and because of this, investors worry that strength in consumer spending and production could force the Fed to keep interest rates higher for longer.<\/p>\n\n\n\n
Sam Stovall, chief investment strategist at CFRA Research, said that while almost nobody expects a November hike, it's becoming more of a coin toss whether the Fed will raise interest rates in December. JPMorgan strategist Marko Kolanovic anticipates that the majority of adverse outcomes resulting from elevated interest rates are yet to manifest. He highlights an upward trend in consumer loan delinquencies and corporate bankruptcies, suggesting that such trends are likely to persist unless there is a reduction in interest rates.<\/p>\n\n\n\nRetail sales rose in September, reflecting U.S. shoppers' resilience despite higher prices<\/em><\/figcaption><\/figure>\n\n\n\n
Higher interest rates will encourage saving over spending in the months ahead and make the debt more costly, and companies that have a bigger credit or other loans with variable interest rates could be in a difficult situation. Higher borrowing costs will hurt corporate profits and discourage businesses from borrowing to invest in new projects, which can hurt economic activity and job creation. And, of course, the flare-up of geopolitical risks adds another headwind and increases tail risks for markets and economic activity.<\/p>\n\n\n\n
Investors are concerned that Israel's increasing retaliation against Hamas might lead to Iran's involvement in the conflict, potentially triggering global repercussions. However, their apprehension has mainly manifested through actions such as purchasing oil futures and divesting from Israeli assets. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n\n\n\n
Therefore, JPMorgan strategist Marko Kolanovic is adopting a defensive stance, maintaining underweight allocations in equities and cryptocurrencies. However, he recommends a boost in the allocation to gold because, during economic downturns, the value of gold may rise, providing a counterbalance to potential losses in other investments. Gold is often considered a safe-haven asset, especially in times of economic uncertainty or geopolitical instability, and investors usually turn to gold as a store of value when other assets are perceived to be risky.<\/p>\n","post_title":"JPMorgan Strategist Expects Most Of The Negative Effects Of Higher Rates \"Still To Come.\" What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jpmorgan-strategist-expects-most-of-the-negative-effects-of-higher-rates-still-to-come-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:22","post_modified_gmt":"2023-10-23 13:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n
Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n
Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n
Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n
However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n
At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n
The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n<\/figure>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
Let\u2019s look into the key areas that will take center stage in the upcoming sector monitoring.<\/p>\n\n\n\n
While the EBA has traditionally guided banking regulators across the EU's 27 member states, the 2024 directive comes with a fresh perspective. It emphasizes three critical areas of concern:<\/p>\n\n\n\n
Liquidity and Funding Risks<\/h2>\n\n\n\n
Maintaining adequate liquidity and managing funding risks have taken on even greater importance following the events that unfolded earlier this year. The EBA intends to closely scrutinize how EU banks manage their liquidity to ensure they are better equipped to handle unforeseen challenges.<\/p>\n\n\n\n
Impact of Higher Interest Rates<\/h2>\n\n\n\n
The fluctuating interest rates in today's economic landscape can significantly affect banks' business models. The EBA will assess how these rate changes impact the profitability and sustainability of financial institutions within the EU.<\/p>\n\n\n\n
Resilience in the Face of Shocks<\/h2>\n\n\n\n
Recent market turbulence, such as the collapse of U.S. lenders and the forced takeover of Credit Suisse by UBS, has underscored the need for banks to remain resilient in the face of economic shocks. Regulators will closely examine how EU banks recover from unexpected events and maintain their stability.<\/p>\n\n\n\n
Among the EU regulators, the European Central Bank (ECB) plays a pivotal role as the overseer of the Eurozone's largest lenders. Its influence will be crucial in implementing the EBA's new objectives and ensuring that the banking sector remains robust.<\/p>\n\n\n\n
The events that transpired earlier in the year, which led to the downfall of several U.S. banks and the takeover of Credit Suisse by UBS, have raised significant questions about the effectiveness of rules and the quality of supervision. The EBA's new approach is a clear response to these challenges and aims to prevent future financial crises.<\/p>\n\n\n\n
The Basel Committee of global banking regulators has also acknowledged the need for stronger supervision. They emphasized that not only boards of banks but also supervisors need to enhance their vigilance, especially in the era of social media. Events like the collapse of Silicon Valley Bank have shown how social media posts can accelerate runs on deposits.<\/p>\n\n\n\n
The EBA plans to diligently follow up on its findings by engaging in bilateral discussions with regulators and conducting peer reviews. This approach will ensure that the new objectives are effectively implemented and that the EU banking sector remains resilient in the face of future challenges.<\/p>\n","post_title":"European Banking Authority (EBA) Embraces Changes For 2024 Banking Sector Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-banking-authority-eba-embraces-changes-for-2024-banking-sector-oversight","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:38","post_modified_gmt":"2023-10-23 13:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13935","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13913,"post_author":"14","post_date":"2023-10-24 00:29:56","post_date_gmt":"2023-10-23 13:29:56","post_content":"\n
Shares on Wall Street weakened after data showed this Tuesday that U.S. retail sales increased more than expected in September, suggesting the economy ended the third quarter on a strong note. In September, U.S. retail sales exceeded expectations with a 0.7% increase, surpassing the anticipated 0.3% rise. Additionally, a separate report indicated that production at U.S. factories in September outpaced initial expectations, and because of this, investors worry that strength in consumer spending and production could force the Fed to keep interest rates higher for longer.<\/p>\n\n\n\n
Sam Stovall, chief investment strategist at CFRA Research, said that while almost nobody expects a November hike, it's becoming more of a coin toss whether the Fed will raise interest rates in December. JPMorgan strategist Marko Kolanovic anticipates that the majority of adverse outcomes resulting from elevated interest rates are yet to manifest. He highlights an upward trend in consumer loan delinquencies and corporate bankruptcies, suggesting that such trends are likely to persist unless there is a reduction in interest rates.<\/p>\n\n\n\nRetail sales rose in September, reflecting U.S. shoppers' resilience despite higher prices<\/em><\/figcaption><\/figure>\n\n\n\n
Higher interest rates will encourage saving over spending in the months ahead and make the debt more costly, and companies that have a bigger credit or other loans with variable interest rates could be in a difficult situation. Higher borrowing costs will hurt corporate profits and discourage businesses from borrowing to invest in new projects, which can hurt economic activity and job creation. And, of course, the flare-up of geopolitical risks adds another headwind and increases tail risks for markets and economic activity.<\/p>\n\n\n\n
Investors are concerned that Israel's increasing retaliation against Hamas might lead to Iran's involvement in the conflict, potentially triggering global repercussions. However, their apprehension has mainly manifested through actions such as purchasing oil futures and divesting from Israeli assets. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n\n\n\n
Therefore, JPMorgan strategist Marko Kolanovic is adopting a defensive stance, maintaining underweight allocations in equities and cryptocurrencies. However, he recommends a boost in the allocation to gold because, during economic downturns, the value of gold may rise, providing a counterbalance to potential losses in other investments. Gold is often considered a safe-haven asset, especially in times of economic uncertainty or geopolitical instability, and investors usually turn to gold as a store of value when other assets are perceived to be risky.<\/p>\n","post_title":"JPMorgan Strategist Expects Most Of The Negative Effects Of Higher Rates \"Still To Come.\" What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jpmorgan-strategist-expects-most-of-the-negative-effects-of-higher-rates-still-to-come-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:22","post_modified_gmt":"2023-10-23 13:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n
Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n
Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n
Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n
However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n
At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n
The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n<\/figure>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
The European Union (EU) banking sector is gearing up for a more vigilant approach in 2024, as the EU's banking watchdog, the European Banking Authority (EBA), outlined specific objectives for its annual checks on lenders. This strategic move aims to incorporate vital lessons learned from the global banking turmoil experienced earlier this year.<\/p>\n\n\n\n
Let\u2019s look into the key areas that will take center stage in the upcoming sector monitoring.<\/p>\n\n\n\n
While the EBA has traditionally guided banking regulators across the EU's 27 member states, the 2024 directive comes with a fresh perspective. It emphasizes three critical areas of concern:<\/p>\n\n\n\n
Liquidity and Funding Risks<\/h2>\n\n\n\n
Maintaining adequate liquidity and managing funding risks have taken on even greater importance following the events that unfolded earlier this year. The EBA intends to closely scrutinize how EU banks manage their liquidity to ensure they are better equipped to handle unforeseen challenges.<\/p>\n\n\n\n
Impact of Higher Interest Rates<\/h2>\n\n\n\n
The fluctuating interest rates in today's economic landscape can significantly affect banks' business models. The EBA will assess how these rate changes impact the profitability and sustainability of financial institutions within the EU.<\/p>\n\n\n\n
Resilience in the Face of Shocks<\/h2>\n\n\n\n
Recent market turbulence, such as the collapse of U.S. lenders and the forced takeover of Credit Suisse by UBS, has underscored the need for banks to remain resilient in the face of economic shocks. Regulators will closely examine how EU banks recover from unexpected events and maintain their stability.<\/p>\n\n\n\n
Among the EU regulators, the European Central Bank (ECB) plays a pivotal role as the overseer of the Eurozone's largest lenders. Its influence will be crucial in implementing the EBA's new objectives and ensuring that the banking sector remains robust.<\/p>\n\n\n\n
The events that transpired earlier in the year, which led to the downfall of several U.S. banks and the takeover of Credit Suisse by UBS, have raised significant questions about the effectiveness of rules and the quality of supervision. The EBA's new approach is a clear response to these challenges and aims to prevent future financial crises.<\/p>\n\n\n\n
The Basel Committee of global banking regulators has also acknowledged the need for stronger supervision. They emphasized that not only boards of banks but also supervisors need to enhance their vigilance, especially in the era of social media. Events like the collapse of Silicon Valley Bank have shown how social media posts can accelerate runs on deposits.<\/p>\n\n\n\n
The EBA plans to diligently follow up on its findings by engaging in bilateral discussions with regulators and conducting peer reviews. This approach will ensure that the new objectives are effectively implemented and that the EU banking sector remains resilient in the face of future challenges.<\/p>\n","post_title":"European Banking Authority (EBA) Embraces Changes For 2024 Banking Sector Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-banking-authority-eba-embraces-changes-for-2024-banking-sector-oversight","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:38","post_modified_gmt":"2023-10-23 13:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13935","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13913,"post_author":"14","post_date":"2023-10-24 00:29:56","post_date_gmt":"2023-10-23 13:29:56","post_content":"\n
Shares on Wall Street weakened after data showed this Tuesday that U.S. retail sales increased more than expected in September, suggesting the economy ended the third quarter on a strong note. In September, U.S. retail sales exceeded expectations with a 0.7% increase, surpassing the anticipated 0.3% rise. Additionally, a separate report indicated that production at U.S. factories in September outpaced initial expectations, and because of this, investors worry that strength in consumer spending and production could force the Fed to keep interest rates higher for longer.<\/p>\n\n\n\n
Sam Stovall, chief investment strategist at CFRA Research, said that while almost nobody expects a November hike, it's becoming more of a coin toss whether the Fed will raise interest rates in December. JPMorgan strategist Marko Kolanovic anticipates that the majority of adverse outcomes resulting from elevated interest rates are yet to manifest. He highlights an upward trend in consumer loan delinquencies and corporate bankruptcies, suggesting that such trends are likely to persist unless there is a reduction in interest rates.<\/p>\n\n\n\nRetail sales rose in September, reflecting U.S. shoppers' resilience despite higher prices<\/em><\/figcaption><\/figure>\n\n\n\n
Higher interest rates will encourage saving over spending in the months ahead and make the debt more costly, and companies that have a bigger credit or other loans with variable interest rates could be in a difficult situation. Higher borrowing costs will hurt corporate profits and discourage businesses from borrowing to invest in new projects, which can hurt economic activity and job creation. And, of course, the flare-up of geopolitical risks adds another headwind and increases tail risks for markets and economic activity.<\/p>\n\n\n\n
Investors are concerned that Israel's increasing retaliation against Hamas might lead to Iran's involvement in the conflict, potentially triggering global repercussions. However, their apprehension has mainly manifested through actions such as purchasing oil futures and divesting from Israeli assets. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n\n\n\n
Therefore, JPMorgan strategist Marko Kolanovic is adopting a defensive stance, maintaining underweight allocations in equities and cryptocurrencies. However, he recommends a boost in the allocation to gold because, during economic downturns, the value of gold may rise, providing a counterbalance to potential losses in other investments. Gold is often considered a safe-haven asset, especially in times of economic uncertainty or geopolitical instability, and investors usually turn to gold as a store of value when other assets are perceived to be risky.<\/p>\n","post_title":"JPMorgan Strategist Expects Most Of The Negative Effects Of Higher Rates \"Still To Come.\" What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jpmorgan-strategist-expects-most-of-the-negative-effects-of-higher-rates-still-to-come-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:22","post_modified_gmt":"2023-10-23 13:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n
Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n
Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n
Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n
However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n
At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n
The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n<\/figure>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
In a separate announcement, OSFI warned of growing risks associated with elevated borrowing costs, particularly in the housing and commercial real estate sectors. These areas have been identified as top vulnerabilities, underlining the regulator's commitment to safeguarding Canada's financial system from various potential risks.<\/p>\n","post_title":"Canadian Banks Brace For Higher Capital Requirements Amidst Rising Mortgage Risks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadian-banks-brace-for-higher-capital-requirements-amidst-rising-mortgage-risks","to_ping":"","pinged":"","post_modified":"2023-10-24 00:32:24","post_modified_gmt":"2023-10-23 13:32:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13957","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13935,"post_author":"18","post_date":"2023-10-24 00:30:09","post_date_gmt":"2023-10-23 13:30:09","post_content":"\n
The European Union (EU) banking sector is gearing up for a more vigilant approach in 2024, as the EU's banking watchdog, the European Banking Authority (EBA), outlined specific objectives for its annual checks on lenders. This strategic move aims to incorporate vital lessons learned from the global banking turmoil experienced earlier this year.<\/p>\n\n\n\n
Let\u2019s look into the key areas that will take center stage in the upcoming sector monitoring.<\/p>\n\n\n\n
While the EBA has traditionally guided banking regulators across the EU's 27 member states, the 2024 directive comes with a fresh perspective. It emphasizes three critical areas of concern:<\/p>\n\n\n\n
Liquidity and Funding Risks<\/h2>\n\n\n\n
Maintaining adequate liquidity and managing funding risks have taken on even greater importance following the events that unfolded earlier this year. The EBA intends to closely scrutinize how EU banks manage their liquidity to ensure they are better equipped to handle unforeseen challenges.<\/p>\n\n\n\n
Impact of Higher Interest Rates<\/h2>\n\n\n\n
The fluctuating interest rates in today's economic landscape can significantly affect banks' business models. The EBA will assess how these rate changes impact the profitability and sustainability of financial institutions within the EU.<\/p>\n\n\n\n
Resilience in the Face of Shocks<\/h2>\n\n\n\n
Recent market turbulence, such as the collapse of U.S. lenders and the forced takeover of Credit Suisse by UBS, has underscored the need for banks to remain resilient in the face of economic shocks. Regulators will closely examine how EU banks recover from unexpected events and maintain their stability.<\/p>\n\n\n\n
Among the EU regulators, the European Central Bank (ECB) plays a pivotal role as the overseer of the Eurozone's largest lenders. Its influence will be crucial in implementing the EBA's new objectives and ensuring that the banking sector remains robust.<\/p>\n\n\n\n
The events that transpired earlier in the year, which led to the downfall of several U.S. banks and the takeover of Credit Suisse by UBS, have raised significant questions about the effectiveness of rules and the quality of supervision. The EBA's new approach is a clear response to these challenges and aims to prevent future financial crises.<\/p>\n\n\n\n
The Basel Committee of global banking regulators has also acknowledged the need for stronger supervision. They emphasized that not only boards of banks but also supervisors need to enhance their vigilance, especially in the era of social media. Events like the collapse of Silicon Valley Bank have shown how social media posts can accelerate runs on deposits.<\/p>\n\n\n\n
The EBA plans to diligently follow up on its findings by engaging in bilateral discussions with regulators and conducting peer reviews. This approach will ensure that the new objectives are effectively implemented and that the EU banking sector remains resilient in the face of future challenges.<\/p>\n","post_title":"European Banking Authority (EBA) Embraces Changes For 2024 Banking Sector Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"european-banking-authority-eba-embraces-changes-for-2024-banking-sector-oversight","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:38","post_modified_gmt":"2023-10-23 13:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13935","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13913,"post_author":"14","post_date":"2023-10-24 00:29:56","post_date_gmt":"2023-10-23 13:29:56","post_content":"\n
Shares on Wall Street weakened after data showed this Tuesday that U.S. retail sales increased more than expected in September, suggesting the economy ended the third quarter on a strong note. In September, U.S. retail sales exceeded expectations with a 0.7% increase, surpassing the anticipated 0.3% rise. Additionally, a separate report indicated that production at U.S. factories in September outpaced initial expectations, and because of this, investors worry that strength in consumer spending and production could force the Fed to keep interest rates higher for longer.<\/p>\n\n\n\n
Sam Stovall, chief investment strategist at CFRA Research, said that while almost nobody expects a November hike, it's becoming more of a coin toss whether the Fed will raise interest rates in December. JPMorgan strategist Marko Kolanovic anticipates that the majority of adverse outcomes resulting from elevated interest rates are yet to manifest. He highlights an upward trend in consumer loan delinquencies and corporate bankruptcies, suggesting that such trends are likely to persist unless there is a reduction in interest rates.<\/p>\n\n\n\nRetail sales rose in September, reflecting U.S. shoppers' resilience despite higher prices<\/em><\/figcaption><\/figure>\n\n\n\n
Higher interest rates will encourage saving over spending in the months ahead and make the debt more costly, and companies that have a bigger credit or other loans with variable interest rates could be in a difficult situation. Higher borrowing costs will hurt corporate profits and discourage businesses from borrowing to invest in new projects, which can hurt economic activity and job creation. And, of course, the flare-up of geopolitical risks adds another headwind and increases tail risks for markets and economic activity.<\/p>\n\n\n\n
Investors are concerned that Israel's increasing retaliation against Hamas might lead to Iran's involvement in the conflict, potentially triggering global repercussions. However, their apprehension has mainly manifested through actions such as purchasing oil futures and divesting from Israeli assets. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n\n\n\n
Therefore, JPMorgan strategist Marko Kolanovic is adopting a defensive stance, maintaining underweight allocations in equities and cryptocurrencies. However, he recommends a boost in the allocation to gold because, during economic downturns, the value of gold may rise, providing a counterbalance to potential losses in other investments. Gold is often considered a safe-haven asset, especially in times of economic uncertainty or geopolitical instability, and investors usually turn to gold as a store of value when other assets are perceived to be risky.<\/p>\n","post_title":"JPMorgan Strategist Expects Most Of The Negative Effects Of Higher Rates \"Still To Come.\" What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jpmorgan-strategist-expects-most-of-the-negative-effects-of-higher-rates-still-to-come-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-24 00:30:22","post_modified_gmt":"2023-10-23 13:30:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n
Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n
Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n
Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n
However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n
At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n
The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n<\/figure>\n\n\n\n
John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n
The uncertainty surrounding the Canadian banking sector's resilience against mounting mortgage risks has impacted the performance of these institutions. Shares of the big six banks have experienced losses ranging from roughly 3% to 12% so far this year, reflecting investor concerns about the sector's challenges, Reuters<\/em> reported<\/a>. <\/p>\n\n\n\n
![\"\"](\"https:\/\/www.thedistributed.co\/wp-content\/uploads\/2023\/10\/Gaza-City.jpg\")
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