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CNN reports of a Glog=bal Recession looming

Posted: Wed Aug 14, 2019 6:26 pm
by Jimgward
The UK, is expected to immediately go into recession, IF we leave with no-deal. This would have impact on Italy and Germany in particular, where they are close to that. Mexico, Brazil, Singapore and Hong Kong are also all on the brink. China is growing at slowest pace for 3 decades.

So, not just down to Brexit, but that would be the straw to break the backs of the UK, Germany and Italy.

Re: CNN reports of a Glog=bal Recession looming

Posted: Thu Aug 15, 2019 12:11 am
by kingfisher
No Jim, the UK need not be dragged down with the rest. It has its own currency, and it still has its own sovereignty [just] - if we can only get out.
I don’t give a damn about Germany, Italy, Mexico, Brazil, Siingapore or Hong-Kong.

If you read the link below it explains the global economic position in terms of bond yields.
A government bond yield curve typically has an upward slope — when the yields are plotted on a graph — because investors expect greater compensation for the risk of owning longer-maturity debt. An inversion, when shorter-dated yields are higher than longer-dated ones, is considered a warning of a looming recession.
https://uk.reuters.com/article/uk-usa-e ... KKCN1V41FI
Jon.

Re: CNN reports of a Glog=bal Recession looming

Posted: Fri Aug 16, 2019 7:38 pm
by Jim B
Interesting
The Treasury has moved billions of sterling into the failing Euro prior to Brexit, I wonder why?

Jim

https://www.thetimes.co.uk/article/trea ... -kjmjzbx7r

Re: CNN reports of a Glog=bal Recession looming

Posted: Sat Aug 17, 2019 7:25 am
by kingfisher
The B.of E., like all other central banks, holds a percentage of other major world currencies….

In recent years it has become customary for all central banks to invest and speculate in these currencies….

However, in a display of prudence not reciprocated by our European friends, the B.of E. has, over the past year, bought up euros to supply banks with. It is part of planning for leaving the European Project successfully later this year….

From a Reuters report, March this year:
“LONDON (Reuters) - The Bank of England said it will offer more euros to banks in Britain to avoid any cash crunch after Brexit and warned that other European Union countries are not fully ready for the possible no-deal hit to the financial system.
The BoE said most financial stability risks in Britain from a no-deal Brexit had been mitigated, and UK banks had enough liquidity to go for months without needing to tap markets.
But as a precaution it will launch a new weekly auction of euros from next week to ensure that banks based in Britain can borrow in Europe’s single currency, following on from a similar announcement last week about weekly sterling operations.
The European Central Bank confirmed that the Eurosystem of central banks would stand ready to lend pound sterling to euro area banks, if needed.
EU banks hold 15 percent of UK bank debt and 10 percent of UK government bonds.”
Jon.

Re: CNN reports of a Glog=bal Recession looming

Posted: Sat Aug 17, 2019 7:54 am
by Jim B
It appears the Bank of England has a lot more confidence in the Euro than you do Jon