In the Blind Spot (Moving to a ‘Pawnbroker for all Seasons’ model in central banking)
COMMENTARY SNEAK PEEK — Regulators channel Mervyn King’s “Pawnbroker For All Seasons” idea as they call for the introduction of an extensive pre-positioning framework. — Dario argues Trump’s America First policy is good for Europe as it will boost competitiveness and investment in its own security. — Could the NBP’s missing 6 […]
Spotlight on the pre-positioning revolution coming to finance
TLDR: Cbankers’ enthusiastic embrace of prepositioning points to growing acceptance of former BoE governor Lord Mervyn King’s ‘Pawnbroker For All Seasons” model. But some worry it might have grave consequences for free markets. There’s a quiet revolution happening at the heart of central banking, but you wouldn’t necessarily know it. On the surface, the inconspicuous […]
Pre-positioning: the quiet revolution rocking central banking (POLITICO)
By Izabella Kaminska · Jan 19, 2024 There’s a quiet revolution happening at the heart of central banking, but you wouldn’t necessarily know it. On the surface, the inconspicuous language around the shift makes it sound like any other boring back-office central bank protocol. For now, even financial markets haven’t picked up on its significance. […]
German central bank chief to join street protest against right-wing extremism (POLITICO)
By Geoffrey Smith · Jan 18, 2024 The head of Germany’s fiercely independent central bank is taking to the streets in protest at the rise of far-right extremism. Bundesbank President Joachim Nagel told Der Spiegel on Thursday he was concerned by the rise of right-wing populism “both as Bundesbank president and as a citizen” and […]
Political push for cheaper ‘green’ interest rate runs into ECB resistance (POLITICO)
By Ben Munster · Jan 17, 2024 Central bankers and politicians are at odds over a new scheme to combat climate change that would get cheap funding to companies pushing the green transition and discriminate against polluters, by offering them two different interest rates. Politicians, including French President Emmanuel Macron, argue that rolling out such […]
UK unveils plan to guard supply chains against geopolitical threats (POLITICO)
By Joseph Bambridge · Jan 17, 2024 LONDON — The United Kingdom has unveiled its strategy to help businesses navigate risks to their supply chains as tensions threaten to disrupt vital trade routes around the world. The Critical Imports and Supply Chains Strategy, published Wednesday, addresses the impact of “geopolitical tensions” which have “already forced […]
In the Blind Spot (Suspending democracy to save democracy edition)
Dear Subscribers, Welcome to another TBS newsletter, brought to you this week from frosty London, with usual contributions from a much less frosty Marbella via my trusty colleague Daria Garcia Giner. It’s been a newsy week on many fronts, not least with Bitcoin ETFs being launched and US/UK strikes hitting Yemen. But we’ll leave those […]
In the Blind Spot (Trust collapse as the biggest risk of 2024?)
Dear Subscribers, Welcome back and a happy 2024 to you all. It’s still the tail-end of the school holidays, so commendations to my trusty zoomer colleague Dario Garcia Giner, who has done the heavy lifting on this week’s edition. I don’t know about you, but I did try to properly unplug this Christmas season. I […]
The ECB’s digital euro team is coming apart (POLITICO)
The ECB’s digital euro team is coming apart By POLITICO Pro Staff · Dec 21, 2023 It’s not just political enthusiasm that’s waning for the digital euro. Staff are abandoning the project too. POLITICO has learned that around 30 percent of the team planning the minting of virtual euro banknotes and coins have left the […]
Spot Markets Live, 15/12/23 (Review of the year and learnings, etc.)
JR = Julian Rimmer (Resident Boomer and former EM markets pro turned writer.) IK = Izabella Kaminska, Mother of Blind Spot Dragons. 10:30 JR: Good morning, Aloha and greetings fellow market wizards And so it came to pass that this was the last Spot Markets Live of 2023 I balanced all, brought all to mind/ […]