Currency

China bond-index debut a timely counter to tariffs

23 Mar 2018

Bloomberg will include the country’s government and policy-bank debt in a key global index. That should attract foreign investors and encourage more liberalization. It’s also a reminder amid rising trade tensions that flows of money far outweigh those of goods and services.

Dollar is Trump’s measuring stick, and cudgel

7 Mar 2018

Stocks fell after President Donald Trump’s top economic adviser resigned, but a better gauge of his performance is the dollar. It has dropped nearly 10 pct versus major currencies since he took office. This market no-confidence vote nonetheless serves Trump’s purpose on trade.

Venezuela’s crypto-currency reeks of snake oil

21 Feb 2018

President Maduro says early sales of its oil-backed petro raised $735 mln. Investing in the virtual coinage is tantamount to a bet on the increasingly autocratic administration’s probity, transparency and basic grasp of economic reality. Good luck with that.

Why bank investors give a FICC about volatility

16 Feb 2018

Global fixed income trading revenue declined 11 pct last year, Coalition data shows. It’s a big reason investment banks again failed to cover their cost of capital. Market ructions will reveal whether a cyclical upturn is near – or whether banks need to accept structural decline.

U.S. watchdogs put crypto-currencies on long leash

6 Feb 2018

Regulators warned Congress that bitcoin and the like test the limit of current law. But for now they seem willing to let the volatile $370 bln market develop rapidly as long as they can keep a handle on fraud. A measured approach makes more sense than Asia’s heavy-handedness.

Trump’s weak dollar upends Asian growth calculus

2 Feb 2018

Asia is bracing for a softer greenback. That could curb export-led growth from South Korea to Singapore and prompt a reappraisal of stock valuations. A U.S. policy shift could complicate Japan’s deflation fight and China’s ability to keep growing 6.5 percent annually.

Mnuchin opens door to new era of currency wars

24 Jan 2018

The U.S. Treasury secretary said a weaker dollar was good for his country in some ways. True, but the break with what his predecessors have asserted since 1995 raises the risk the greenback will be used as a trade weapon. That would be bad news for foreign holders of U.S. debt.

New push for global yuan fuels fresh appreciation

15 Jan 2018

China is restarting the project to take its currency global after years of neglect. European central banks are helping by including it in their reserves. Throw in a stronger euro, and a seemingly relaxed Beijing, and the yuan could easily strengthen further.

China is stuck in a petroleum Catch-22

11 Jan 2018

A yuan crude futures contract could finally launch in Shanghai early this year, as the world’s largest importer tries to shake up a market dominated by London and New York. A new benchmark is within reach, but clear-cut success will require the unthinkable: embracing the dollar.

Rising won could help drive change in South Korea

9 Jan 2018

Seoul appears to be reverting to a tired pattern and intervening to cap a surging currency. The authorities should instead welcome the rise as prodding big exporters to raise their game. While growth might take a hit, the long-term gains in competitiveness could be considerable.

Hadas: Albanian mania is cautionary crypto tale

28 Dec 2017

Back in 1996, the Balkan state went wild for investment funds offering 30 percent monthly returns. The final cost was 2,000 lives and five years of lost GDP growth. Bitcoin’s 24 percent monthly gains in 2017 show similar foolishness, but a quick collapse could limit the harm.

Chancellor: Bitcoin speculators face total wipeout

13 Dec 2017

Bubbles - in tulips, railroads or the Mississippi Co - aren’t just about the madness of crowds - nor are they simply manifestations of excess money. And they always offer a premonition of the future. Whatever the future for crypto-currencies, it’s clear that bitcoin has none.

Bitcoin futures set scene for more gambling

11 Dec 2017

The 20 pct surge on new CBOE cash-settled contracts is sedate by crypto-currency standards. There’s still cause for concern. Rather than being a useful hedge, futures make it easier to trade bitcoin without actually owning it. For now they have little utility beyond speculation.

Crude-backed crypto-coin is mostly snake oil

8 Dec 2017

An ex-CFTC commissioner is launching a digital currency backed by the commodity. His promise of stable value sits oddly against bitcoin’s wild ride. While it offers a tax edge over oil-backed ETFs, it’s hard to imagine this coin existing if not for the wider crypto craze.

Bitcoin looks like speeded-up unicorn hype

7 Dec 2017

A sheen of futurism, fear of missing out, a lack of fundamental value, and an inability of big backers to sell without crashing the market are factors pumping up the digital currency’s price. It’s like accelerated startup funding rounds. The danger is a Theranos-like bloodbath.

ICO bust heralds U.S. crypto-currency rules chaos

4 Dec 2017

The SEC has taken its first action against a coin offering, alleging the perpetrators fraudulently raised $15 mln. The CFTC, though, just gave the green light to bitcoin futures. The growing regulatory discord on virtual currencies increases the risks to investors.

Wall St poised to stop worrying and love bitcoin

1 Dec 2017

Crypto-currencies are set to take center stage. Mike Novogratz is launching a hedge fund, exchanges are teeing up futures contracts, big banks are likely to enter the fray and even the Fed is taking notice. It may end in tears, but the industry won’t ignore a $300 bln market.

Guest view: Bitcoin bubble obscures real worth

30 Nov 2017

Crypto-currencies are like South Sea Company shares: unanalyzable, but here to stay. For one thing, they offer a government-proof store of wealth. For another, real technological advances exist along with the scams. More stable prices are, however, needed for long-term value.

Hadas: Bitcoin at $10,000 is even more dangerous

29 Nov 2017

The crypto-currency is on the verge of turning respectable, but a futures market cannot cure its faults. It is economic nonsense, socially irresponsible and an incoherent vote for cultural nihilism. Then there is the unadulterated greed. Disaster can't come soon enough.

The Exchange: Mike Novogratz

15 Nov 2017

From Goldman Sachs partner to Fortress founder and now bitcoin trader, the chief executive of Galaxy Investment Partners has something of a Midas touch. He swings by Times Square to talk about how he's making a killing with a new hedge fund betting on crypto-currencies.