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IMF predict tougher recovery for world economy

Colin Henderson

The Global Financial Stability Report is issued usually annually. This issue has the sub text: Safeguarding Financial Stability amid High Inflation and Geopolitical Risk It is a long report and available at IMF. Here is the FT view. The IMF has warned of a “hard landing” for the global economy if persistently troublesome inflation keeps interest rates higher for longer and amplifies financial risks. On to the report. The beginning of IMF Executive Summary is reproduced here. It summarises at a high level although it leaves out some important aspects in particular the financial mismanagement of the failed banks; a … Continue reading IMF predict tougher recovery for world economy

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BlackRock latest Geopolitical Risk dashboard

Colin Henderson

Selected extracts from BlackRock Geopolitical dashboard. I would lean toward this dashboard as only contributing to a change in world order. Nonetheless a good report and worth signing up for. BLACKROCK INVESTMENT INSTITUTE Geopolitical risk dashboard February 2023 | A new world order is taking shape. The Ukraine war and U.S.-China competition have fueled fragmentation and the emergence of geopolitical blocs. There has been a dramatic reduction in cooperation among major powers. Our BlackRock Geopolitical Risk Indicator has declined from its 2022 peak, but market attention remains elevated. I reproduce only three risk that caught my attention as being more … Continue reading BlackRock latest Geopolitical Risk dashboard

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Government of Canada releases National Inherent Risk Assessment

Colin Henderson

The NIRA provides an overview of money laundering and terrorist financing risks posed to various business types and sectors before the application of mitigation measures. Its also the first AML/ATF Regime Strategy published by Canada and demonstrates the importance of public accountability and transparency to the success of the Regime. The report contains priorities grouped under the following four themes: Increasing operational effectiveness; Addressing legislative and regulatory gaps; Improving Regime governance and coordination; and Contributing to international community efforts to combat money laundering and terrorist financing. Thank you Josep Dixon FINTRAC for the notification of the release- LinkedIn Executive Summary … Continue reading Government of Canada releases National Inherent Risk Assessment

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Binance Australia’s derivatives license cancelled by ASIC

Colin Henderson

https://www.coindesk.com/business/2023/04/06/binance-australias-derivatives-license-cancelled-by-regulator/ The Australian Securities and Investments Commission (ASIC) has cancelled Binance Australia’s derivatives license, according to a press release on Thursday. The move comes following a request from Binance on April 5. Binance Australia, an arm of the world’s largest crypto exchange by trading volume, will close all of its customers’ open derivatives positions by April 21. The platform had just 104 users as of yesterday, noted Binance CEO Changpeng Zhao in a tweet. Binance’s spot crypto exchange in Australia will continue to operate, he added. In a statement, Binance Australia said that it was “winding down” its derivatives product … Continue reading Binance Australia’s derivatives license cancelled by ASIC

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CBC report examples of Interac transfer being cancelled after autodeposit

Colin Henderson

Issue A particular benefit centred on the attributes of non recourse. Recently some have complained of cancelled payments despite the funds being in their bank account. Introduction E-Transfer (previously Certapay) was introduced in Canada in 2002. Fraud checks were implemented behind the scenes by the sending institution, manual at first and increasingly automated. The automation in most larger institutions has been integrated with their overall customer fraud reviews resulting in immediate payment in most cases. It is generally understood fraud checks precede payments. The caveat sits with the usual small print warnings that apply to most transactions whereby banks reserve … Continue reading CBC report examples of Interac transfer being cancelled after autodeposit

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Jamie Dimon’s annual Letter to Shareholders 2022 – part 2, final

Colin Henderson

— Here are my notes and thoughts on the banking turmoil section of the JP Morgan letter. The piece of the letter that addresses the Banking crisis is thoughtful and carefully worded. It jumps off the page that Dimon sees a desperate need for agreement between regulators and banks as to role of banks, what we see as their role and finally the need to include shadow banking which form a larger than life part of the financial system. Rana Foroohar of FT wrote on this just yesterday. When the pandemic hit (2020), non-banks such as hedge funds and open-ended … Continue reading Jamie Dimon’s annual Letter to Shareholders 2022 – part 2, final

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“The rich world’s housing crunch is far from over”

Colin Henderson

Finance & economics | Pain to come The rich world’s housing crunch is far from over | The Economist World housing analysis – The Economist Markets can be split into three camps: early adjusters, bullet-dodgers and slow movers At times during the long boom that followed the global financial crisis of 2007-09, it seemed as if house prices would never stop rising. Sales surged as a cocktail of ultra-low interest rates and supply shortages boosted competition for properties. Things are very different today. In countries across the rich world, from America to New Zealand, sales have cratered over the past … Continue reading “The rich world’s housing crunch is far from over”

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Jamie Dimon’s annual Letter to Shareholders 2022 – my first impression

Colin Henderson

Annual Report 2022 | JPMorgan Chase & Co The letter contains a section on BANKING TURMOIL AND REGULATORY GOALS. My impression: More to come. Meantime here is JP Morgan introduction to this discussion extracted from the letter and the source. Following is extracted from JP Morgan letter. BANKING TURMOIL AND REGULATORY GOALS The recent failures of Silicon Valley Bank (SVB) in the United States and Credit Suisse in Europe, and the related stress in the banking system, underscore that simply satisfying regulatory requirements is not sufficient. Risks are abundant, and managing those risks requires constant and vigilant scrutiny as the … Continue reading Jamie Dimon’s annual Letter to Shareholders 2022 – my first impression

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Business Outlook Turns Negative in Canada Amid Higher Rates

Colin Henderson

Inflation expectations fall in BoC surveys but remain too high Bloomberg report Canadian economy is properly responding to the interest rate increases. The tight labour market is expected to improve with impact of coming aggressive immigration increase policies. Snippets from Bloomberg article: The central bank’s business outlook indicator fell to -1.1 in the first quarter, from 0.1 previously. Firms expect slower sales growth for the fifth straight survey, due to higher interest rates, high inflation and concern about a recession. The data suggest the Bank of Canada’s aggressive rate increases over the past year are working to drag down inflation … Continue reading Business Outlook Turns Negative in Canada Amid Higher Rates

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Two Office Landlords Defaulting May Be Just the Beginning

Colin Henderson

With at least $92 billion of office mortgages maturing this year, landlords are under increasing pressure. Bloomberg With the prevalence of Work from Home this had to come. Fixed rents and floating interest. Plus rents dropping. A Pacific Investment Management Co. office landlord that defaulted on $1.7 billion of mortgage notes sent shockwaves through a troubled part of the real estate market.  For years, property owners have been grappling with the rise of remote work — a problem so large that one brokerage estimates roughly 330 million square feet (31 million square meters) of office space will become vacant by the end of the … Continue reading Two Office Landlords Defaulting May Be Just the Beginning