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Here’s how big the balance sheets of the Federal Reserve, the Bank of England, the European Central Bank, the Bank of Japan and the Swiss National Bank are (June 2020 edition); Plus how much they have grown so far in 2020 in response to COVID-19

Big Bigger numbers …

Continue reading “Here’s how big the balance sheets of the Federal Reserve, the Bank of England, the European Central Bank, the Bank of Japan and the Swiss National Bank are (June 2020 edition); Plus how much they have grown so far in 2020 in response to COVID-19”

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The Bank of Japan now owns about 32.25 trillion Yen ($302 billion) or 85% of all Japanese Index-Linked Exchange-Traded Funds

The Bank of Japan has set out a guidance (or target) to buy 6 trillion Yen ($56 billion) worth of exchange traded funds (ETFs) a year, a measure designed to funnel money into the economy. It also has a policy to increase its ETF purchases if market volatility begins to hurt business confidence (as COVID-19 has)

Continue reading “The Bank of Japan now owns about 32.25 trillion Yen ($302 billion) or 85% of all Japanese Index-Linked Exchange-Traded Funds”

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Highlights from May 2020 – Oil has best month ever; COVID-19 impact on employment; U.S. corporate earnings; First Quarter (Q1) GDP readings; Stocks continue rebound

Oil has best month ever

In April, oil prices briefly went negative. May was a different story with WTI Crude, the U.S. oil benchmark, registering its best month ever after gaining 88.38%. Record supply cuts and an uptick in demand pushed prices higher.

WTI Crude January to May 2020

Continue reading “Highlights from May 2020 – Oil has best month ever; COVID-19 impact on employment; U.S. corporate earnings; First Quarter (Q1) GDP readings; Stocks continue rebound”

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U.S. Q1 2020 GDP contracts 5% (QoQ) but grows 2.1% (YoY) as COVID-19 hits economic activity

U.S. gross domestic product (GDP) contracted 5% in Quarter 1 (Q1) 2020 (vs Q4 2019) but grew 2.1% (vs Q1 2019) on back of economic activity being hit due to the spread of COVID-19. On a long-term average, the numbers aren’t really that bad but Q2 2020 will be far worse …

US Q1 2020 GDP Year on Year change 10 year bar chart

Continue reading “U.S. Q1 2020 GDP contracts 5% (QoQ) but grows 2.1% (YoY) as COVID-19 hits economic activity”

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European Union Q1 2020 GDP contracts by 3.3% (QoQ) and contracts 2.6% (YoY); Euro Area or Eurozone Q1 2020 GDP contracts by 3.8% (QoQ) and contracts 3.2% (YoY); France, Spain and Italy see largest falls

GDP contracted for the European Union (EU27) by 3.3% in the first quarter (Q1) 2020 (compared to Q4 2019) and by 2.6% (compared to Q1 2019).

GDP contracted for the Euro Area or Eurozone (EA19) by 3.8% in the first quarter (Q1) 2020 (compared to Q4 2019) and by 3.2% (compared to Q1 2019).

Eurozone European Union EU Q1 2020 GDP growth
Source: Eurostat

Continue reading “European Union Q1 2020 GDP contracts by 3.3% (QoQ) and contracts 2.6% (YoY); Euro Area or Eurozone Q1 2020 GDP contracts by 3.8% (QoQ) and contracts 3.2% (YoY); France, Spain and Italy see largest falls”

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UK Q1 2020 GDP contracts by 2% (QoQ) and contracts 1.6% (YoY); Services, Production and Construction all contract; Household consumption falls the most since 2008

UK Q1 2020 gross domestic product (GDP) was estimated to have fallen by 2% in the quarter compared to Q4 2019, the largest fall since Q4 2008.

When compared with the same quarter (Q1 2019) a year ago, UK GDP decreased by 1.6% in Q1 2020 which was the biggest fall since Q4 2009.

UK 2020 Q1 GDP

Continue reading “UK Q1 2020 GDP contracts by 2% (QoQ) and contracts 1.6% (YoY); Services, Production and Construction all contract; Household consumption falls the most since 2008”

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Highlights from April 2020 – Strong rebound in stocks; Oil prices go negative (for a while); Central Banks announce big bond purchases

COVID-19 cases accelerating

The World Health Organization (WHO) declared COVID-19 a pandemic in March. New cases and fatalities are still growing exponentially. At the end of April there were 3.25 million cases (up from 860,000 at the end of March). The number of fatalities has grown exponentially too to 231,000 at the end of April (up from 42,000 at the end of March).

Strong rebound in stocks

Almost after every crash comes a resounding boom. Continue reading “Highlights from April 2020 – Strong rebound in stocks; Oil prices go negative (for a while); Central Banks announce big bond purchases”

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Highlights from March 2020 – Coronavirus now a pandemic; Equities record worst month since 2008; Government bond yields fall further; Major Shock, recession, or depression?

COVID-19 (Coronavirus) now a pandemic

The World Health Organization (WHO) declared COVID-19 a pandemic on the 11th of March. New cases and fatalities are growing exponentially. At the end of March there were about 857,000 cases globally (up from 85,000 at the end of February and 9,500 at the end of January).

Continue reading “Highlights from March 2020 – Coronavirus now a pandemic; Equities record worst month since 2008; Government bond yields fall further; Major Shock, recession, or depression?”