Donnie Roberts, Thinkorswim – Traversing Seismic Shifts
“The biggest shift in this world is to a knowledge-based environment. You guys can fuel that.”
Donnie Roberts of Thinkorswim discusses how we all go through event shifts during our careers. Beginning with his start at Thinkorswim Group Inc., a small Chicago-based options brokerage firm, Roberts discusses how the firm was acquired by TD Ameritrade and his transition of working in a small office environment to the expectations of a larger firm. Roberts also acknowledges the importance of education and how it is an essential factor to the future participants of the financial industry. Roberts explains how he keeps himself educated to understand new regulation and learn about key members in the financial industry. He says that all new entrants into the industry have a chance to shape its future, but keeping yourself educated is the biggest advantage you can have.
Quote of the Day
There are signs that the search for yield is leading to exaggerations in certain market segments.
Claudia Buch, deputy president of the German Bundesbank, in the FT story “Bundesbank warns corporate debt becoming overpriced”
Singapore Exchange to Start Bond-Trading Platform by mid-2015
Sharon Chen – Bloomberg
The Singapore stock exchange plans to begin a bond-trading platform by the middle of next year, the bourse said today.
Bundesbank warns corporate debt becoming overpriced
Claire Jones in Frankfurt – Financial Times
Germany’s central bank has warned that corporate debt is becoming overpriced and threatens the financial stability of Europe’s biggest economy.
***DA: The market has been front-running the central banks which are expected to continue to pile into asset-backed securities.
ECB Bond-Buying Offer May Fail to Motivate Banks to Sell
Simon Kennedy – Bloomberg
Even if the European Central Bank clears all the hurdles to enact a government-bond buying program, there will be one final obstacle: finding motivated sellers.
***DA: Like so.
Radical cures for unusual economic ills
Martin Wolf – Financial Times
The principal high-income economies – the US, the eurozone, Japan and the UK – have been suffering from “chronic demand deficiency syndrome”. More precisely, their private sectors have failed to spend enough to bring output close to its potential without the inducements of ultra-aggressive monetary policies, large fiscal deficits, or both. What is to be done about it? To answer, you have to understand the ailment.
***DA: Consume, consume, consume!
Nancy H. Teeters, First Woman on Federal Reserve Board, Dies at 84
PAUL VITELLONOV. 25, 2014 – NY Times
Nancy H. Teeters, a liberal economist who was the first woman appointed to the Federal Reserve Board and who broke with tradition by openly criticizing decisions of fellow board members that she felt hurt consumers and working people, died on Nov. 17 in Stamford, Conn. She was 84.
***DA: I wonder how she felt about current policy.
Fed’s game of pretend must end soon
Tad Rivelle – Financial Times
The Duchess of Windsor whimsically remarked that you could never be too rich or too thin. Modern central bankers have similar sentiments surrounding the bloat in their balance sheets and the skinniness of their policy rates.
BOJ’s Shirai defends latest easing, rules out incremental action
Leika Kihara – Reuters
A Bank of Japan board member who voted for last month’s huge monetary expansion defended the move on Wednesday, saying that failing to act would have cast doubt on the bank’s determination to hit its price goal and undermined its credibility.
ECB Prepared to Buy Sovereign Bonds Early Next Year, Says Constancio
Todd Buell And Brian Blackstone – WSJ
European Central Bank Vice President Vitor Constancio sent the strongest signal to date Wednesday that the ECB is prepared to buy government bonds early next year if it decides that more aggressive stimulus measures are needed.
China Savers Prioritized Over Banks by PBOC
After subsidizing banks and industry for decades, China’s savers awoke Saturday to a surprise. On the central government’s website a graphic explained that an interest-rate cut taking effect that day would protect returns on savings deposits while slicing at least 0.15 percentage point off lending margins. The government site has since posted four news articles referencing the switch.
Currency hedge funds continue to disappoint
Solomon Teague – Euromoney Magazine
It has been a chastising few years for currency hedge funds. Several high-profile currency managers have closed down due to poor performance while many that have survived have struggled with redemptions. But some hedge fund allocators are predicting an imminent return to form for FX strategies.
HKEx Says Investors Comfortable With Mini Contract Settlements
Alex Davis – Bloomberg
The offshore yuan’s low volatility means the time gap between price settlement and foreign-exchange fixing in the Hong Kong Exchanges & Clearing Ltd. (388)’s new metals futures won’t damp interest in the contracts, according to a bourse official.
Kraken Bitcoin Operator to Help Liquidate Mt. Gox
Takashi Mochizuki – MoneyBeat – WSJ
San Francisco-based Payward Inc., operator of the Kraken bitcoin exchange, will help the collapsed Mt. Gox exchange investigate the loss of hundreds of thousands of bitcoins and manage the process of paying back its creditors, the companies said Wednesday.
Aussie dollar finally following commodities
Evan Lucas, Melbourne-based strategist at IG, said “the divergence between the falling commodity prices and the AUD over the past two years is rapidly breaking down.” Historically the Aussie has been considered a commodity-linked currency. Australia is a major exporter of iron ore, coal, gold, beef and more. When demand for those items rises, so does the demand for the Aussie dollars needed to buy them.
Indexes & Index Products
China ETF Demand Overwhelms Quota as Premium Surges
Boris Korby and Belinda Cao – Bloomberg
The largest U.S. ETF that tracks mainland Chinese stocks has jumped to a record premium to its underlying assets as unprecedented demand forces fund manager Deutsche Bank AG to all but stop taking in new money.
Gold rebound coming in 2015: George Gero
After subsidizing banks and industry for decades, China’s savers awoke Saturday to a surprise.
On the central government’s website a graphic explained that an interest-rate cut taking effect that day would protect returns on savings deposits while slicing at least 0.15 percentage point off lending margins. The government site has since posted four news articles referencing the switch.
Gold Bulls Should Buy With Euros, Not Dollars: Chart of the Day
Investors looking for gains in gold should start buying the metal in yen or euros, according to BMO Capital Markets Corp.
Why Gold and Silver Are at an Important ‘Make-or-Break’ Point
Gold and silver have been some of the worst performing markets in the past few years. After experiencing a parabolic surge in 2011, precious metals, along with other commodities, have been in a steady downtrend as the Fed continues its march toward tighter monetary policy as the economy shows continued growth. The U.S. dollar’s sharp rally since the summer also contributed to gold and silver’s punishment, while lower oil prices have further weakened the case for inflation hedges.