ECB balance sheet resumes uptrend. After last week’s €31bn plunge following TLTRO repayment of banks, total assets now rose by €9.4bn as banks took more money at MRO at the end of the year. Balance sheet now equal to 40.6% of Eurozone GDP. Fed’s balance sheet “continues its epic rise” — up by an avg $101.5b per month since September, compared to $80b per month during QE3. “It’s hard not to imagine this influence on stock prices during 2019..”. As we start 2020, China injected cash into the system by cutting the required reserve ratio for commercial lenders by 50bp releasing 800bn yuan ($115bn) announced on Jan 1st effective Jan 6th, this is the eighth RRR cut since early 2018 - as usual for full email report please subscribe directly on our webpage
SPX vs Energy sector - one of those most striking chat of the last decade - opportunity ?
The BIS said the repo crisis was the result of "top four banks" reducing their cash in the repo market. In reality, it was just one bank.. 2019's undisputed Man of the Year: Jamie Dimon, for successfully forcing the Fed to launch QE4 after sparking a repo market crisis when JPMorgan withdrew $200BN in liquidity from repo markets……..