Oil prices dipped again today
Oil prices fell 1% on Monday, mainly due to concerns about China’s economic rebound and a stronger currency. Brent crude futures fell 93 cents to $86.46 a barrel, while WTI fell $1.03 to $82.81. The rebalancing is overdue, but may need a reality check in the markets. OPEC+ has pledged to tighten supplies and stabilize…
China yuan has lost 5% against the dollar
China’s central bank will maintain medium-term policy loan rates on Tuesday, despite economic slowdown signals. Market experts believe monetary easing is needed to counter the slowdown, but a weaker Chinese yuan has hampered the central bank’s efforts. 20 out of 26 polled market watchers predicted the central bank to keep the interest rate on its…
The NAIC has declared a new statement against states
The NAIC’s methodology differs from banking regulators’, which do not allow banks to defer interest rate-related losses. This change is criticized by consumer advocates, who argue that it will encourage insurers to risk investment losses to boost returns. The American Council of Life Insurers (ACLI) lobbied for the reform, which aims to standardize interest rate-related…
New regulators on insurers will benefit long term bond investors
The relaxation of a 31-year-old regulation on disclosing interest rate-related losses could potentially net US insurers hundreds of millions of dollars. After lobbying, regulators in Seattle changed how insurers acknowledge these losses, allowing them to use the cash for new policies, business investments, or share price enhancements. As of December, 23% of Fitch-rated life insurers…
J.P. Morgan offer alternative financing channels to China
J.P. Morgan warns that Chinese REITs’ 2.8 trillion yuan ($385.78 billion) assets are at risk due to a “vicious cycle” of real estate financing issues. Country Garden, China’s largest private developer, plans to defer payment on a private onshore bond for the first time. JPM analysts warn that alternative financing channels, such as trusts, may…
IRA will be savior for US inflation
The IRA could shield the U.S. economy from rising oil prices and broken supply chains that caused the recent high inflation. It could protect the economy from rising oil prices, which have caused nearly every recession since World War II. The IRA may have spurred $500 billion in business factory investments, despite measures to lower…
Three major things that help inflation go down
Economists list three major reasons for the fall in inflation: decreased oil and gas prices, the Fed’s aggressive interest rate hikes, and the resolution of the pandemic’s supply chain issues. Biden administration officials claim they lowered inflation by releasing oil from the U.S. strategic reserve and establishing a task force to strengthen U.S. port activities…
The IRA may have lowering prices in the future
The Inflation Reduction Act (IRA) has been criticized by President Joe Biden, who believes it has little to do with the year-long decline in inflation from 9% to 3.2%. Most economists argue that the IRA has little to do with the inflation to date, and that other factors, such as rising consumer prices, may have…