PVM Monday bits / Central Bank action across globe / Market discolations abound

First of all, we hope you and your family are safe, markets are one thing, but health and personal safety is essential. It is quite clear now, for everyone, that many things will change post COVID-19 crisis, nationalistic ideas from recent years will be questioned (like MAGA and BREXIT) and rightly so. This crisis and the necessary adjustments will likely take months in some parts, and dislocation in other parts will remain over years, rather than weeks, although experts would appear to call for a peak in this virus over the next 4-8weeks (many different views remain). Many businesses will suffer, clearly, BIG corporation will have to redefine their supply chain and will have to do their bits to help in the short-term (accelerating production of certain products, free access to internet, technology etc) - it seems it is well underway – few headlines below. Geopolitics likely to remain an issue while we have Trump in there..(there are others). Let’s all be sensible in all this. When all is said and done, this implementation of social distancing is going to wind up bringing us much closer together

FED action pre-open, cvut 100bp and $700bn of QE – did not help equity markets (went limit down within 30minutes of reopening) – this is much more a $ financing/funding/credit issue, all -- other central banks following up in which ever way they can Fed, BoC, BOE, BOJ, ECB and SNB coordinate "to enhance the provision of liquidity via the standing U.S. dollar liquidity swap line arrangements" “There will be liquidity available -- whatever we need to do, whatever the Fed needs to do, whatever Congress needs to do, we will provide liquidity,” Mnuchin said. “There will be a massive amount of liquidity.” ECB Board member Fabio Panetta:"if necessary, QE could be expanded", "large, unwarranted increases in spreads will be addressed decisively", "we have the possibility to focus our efforts on asset classes and countries that come under pressure" Denmark to cover three-quarters of sacked employees’ salaries -- Comcast to Give Families Free Internet During -- Coronavirus Pandemic – good – it is MEGA important for the large Corporations to do their bits, and take leadership role in helping the most in need

https://www.businessinsider.com/trump-administration-tried-to-pay-germans-scientists-for-coronavirus-cure-2020-3?amp&r=US&IR=T President Trump reportedly tried to poach German scientists working on a cure for coronavirus and offered cash so the vaccine would be exclusive to the USA

https://www.cnbc.com/2020/03/15/coronavirus-uae-saudi-central-banks-roll-out-40-billion-stimulus-for-virus-hit-economies.html UAE, Saudi central banks roll out $40 billion stimulus for virus-hit economies – and pretty much anyone else will do thwta they can in their own countries

https://www.breitbart.com/health/2020/03/13/comcast-to-give-families-free-internet-during-coronavirus-pandemic/ Comcast to Give Families Free Internet During Coronavirus Pandemic

NO-one was speared in the giant margin call - https://marketrebellion.com/100m-in-margin-calls-crypto-lenders-demand-collateral-as-market-buckles/ $100M+ in Margin Calls: Crypto Lenders Demand Collateral as Market Buckles

"Risk parity funds...among the big casualties of financial markets’ wild week, suffering their worst performance since the depths of the credit crisis and the second-worst on record" - FT

Signs of credit and funding stress is re-emerging following the markets stress of the past 3 weeks and despite liquidity injections by the Fed: Dollar Libor OIS spread jumps to 58bps, amplifying econ fallout from the COVID-19 crisis.

7 views0 comments

Staldenbachstrasse 11, 8808 Pfäffikon, Switzerland

+41 44 542 80 00

©2019 by Pure Value Metrics AG