Looking at Australia’s big four banks (CBA, WBC, ANZ, NAB) we see a condition where the evolution of the global context is under-appreciated, particularly with regards to shifts in the Chinese situation. First, we look at the valuation picture of Australia’s big four banks. Then we consider the bank’s Achilles-heel... Show More
Aussie market started positive and finished even more positive on Chinese lending data despite a pullback in the middle on Japanese not moving on stimulus quickly. The Japanese are waiting to see the effects of negative rates before moving on more stimulus. China lending was on fire with New Year.... Show More
Aussie market started negative and fought back during the day to finish flat on the back of the big miners. The US market was negative after solid but below par job data over the weekend. Major indices DOWJON and SP500 went below 36mth MA while NASDAQ was trading on the... Show More
It’s been a rough start to the year for most investors, but particularly those without international exposure. Most major stock indexes have fallen substantially and each day brings another statistic from 2015 showing that outside the FANG stocks (i.e. Facebook, Amazon, Netflix and Google) the US virtually suffered a bear... Show More
The devaluation of the Yuan is setting in motion events that will directly affect the US economy. Saxo’s chief economist Steen Jakobsen says the consensus on the recycling of excess capital from Asia to the US bond market will change. There will also probably be “a significant reduction in China’s... Show More
The People’s Bank of China has just devalued the Chinese yuan by almost 2%, announcing too significant changes to the existing exchange rate regime. John Hardy, Head of FX Strategy at Saxo says there’s probably more devaluation to come in the near future, as the more freely floating offshore yuan... Show More
CNY vs JPY: An ugly currency war Saxo Bank CIO and Chief Economist Steen Jakobsen is watching the yen versus the yuan. He says that we are seeing an extremely weak Yen and an extremely strong Yuan. China's two main export competitors are Korea and Japan, so Steen sees two deflationary... Show More
The fall out from global currency revaluations will create opportunities for equity investors in coming months. We have witnessed a dramatic reassessment of currency values in recent months. The euro and $A have slumped against the $US. The shock waves from the dramatic shift in currencies is having - and... Show More
Why yuan's sharp drop cannot be ignored - John Hardy, Saxo Bank Head of FX Strategy The Chinese yuan fell by almost 1 percent in late February, its biggest drop since September 2011. Saxo Bank's John Hardy says the drop is an intentional move by the Chinese authorities trying to stamp... Show More