October 08, 2024
United States:
Turbulent US Funding Market Forewarns of a Volatile End to 2024
The latest heightened liquidity pressures in the US funding market have some on Wall Street nervous about even greater challenges in the final month of the year.
Market participants say a spike in rates tied to repurchase agreements, which are overnight loans collateralized by US Treasuries, could intensify in December as both regulatory burdens and Treasury auction settlements will collide for the second time in three months, yanking cash out of the funding market. It was those conditions that pushed rates to atypical levels at the end of the third quarter.
Europe:
German Economy May Contract in 2024, Bundesbank Chief Nagel Says
The German economy is likely to experience another year of contraction with the US election posing an additional risk to Europe’s growth, according to Bundesbank President Joachim Nagel.
“It will probably be the case, as the Federal Minister of Economics predicted, that the second half of the year will be weak and it cannot be ruled out that we will have a slight recession in 2024,” Nagel told Table Media podcast on Tuesday.
Asia:
Ishiba’s Right-Hand Man Stresses Unity with BOJ on Deflation
Japan’s new government trusts the Bank of Japan’s decisions and will work closely with the central bank to eliminate the risk of a return to deflation, according to a key ally of Prime Minister Shigeru Ishiba.
BOJ Governor Kazuo Ueda and Ishiba share an understanding that beating deflation, a long-sought goal, is their priority and will continue to observe a 2013 joint policy accord to achieve that objective, Economic Revitalization Minister Ryosei Akazawa said in a group interview Tuesday.
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