Anyone scalping the FTSE Futures??

joseph1986 said:
My two cents since Janet yellen is on T.V. Here
Negative rates reflect the particular appetite of economic actors for safe assets such as sovereign bonds. As the demand for these bonds increases, the fixed yield of these bonds diminishes to the point of entering the negative zones. This does not discourage investors who continue to prefer these assets to other riskier ones. Banks are obliged to buy them in order to have collateral available. Speculators in the money markets buy them because they hope to gain by selling them at more expensive prices once the rates continue to fall. Insurance companies have an obligation to hold them.

This is however not the purpose of central banks which throughout the world are struggling to find ways of becoming more resourceful to push banks to lend and businesses to invest by borrowing. Through what is now commonly called quantitative easing, their advertisements of working effectively are increasingly hailed as 'successful' yet we only see promises of shortening its duration.

How do we explain this situation? By virtue of the lack of appetite for risk-taking on the markets and, consequently, the low demand for corporate debt. Why are companies so unprofitable? :

- The profit prospects in our economies are very low due to too many institutional rigidities.
- Secondly and most importantly, it must be remembered that the 2008 crisis greatly devalued the assets of companies that have huge debts to repay. Therefore, conscious of the weight of it, they want to reduce their risk-taking and reduce their debt. Broadly speaking, companies prefer to reduce their debt indefinitely rather than take new risks by using credit. They prefer to clean up their balance sheets and invest again only when they have sufficient equity or when the valuation of their assets is sufficiently robust to guarantee additional indebtedness. Since 2008, many companies have discovered that they do not meet either of these conditions. The weakness of credit signals a weak demand, resulting from companies' reluctance to invest in the current environment.
- Thus, the eurozone is globally in a phase of deleveraging under the weight of countries like Germany, Portugal, Spain, Hungary. The United Kingdom may be said to be in a hoarding phase, the United States is very close to net deleveraging and Japan is now deleveraging For 25 years.

In a classic crisis, debt falls rapidly under bankruptcy and there is rapid restructuring of assets as businesses and individuals boost the economy. In the japanese situation, companies reduce their debts only very slowly and restructure their assets only as they are able to meet their obligations. In this type of crisis, companies are making surpluses (unlike what they do in a normal context), personal surpluses are diminishing and states take over businesses and generate more and more deficits. The goal: keep the economy afloat. Meanwhile, the economy is stagnating. This is EXACTLY what happened in Japan after the crisis in the late 1980s.

Conclusion

One must understand the situation in which one is in if not to change it to adapt to it. We need to take stock of the risks that these unconventional monetary policies pose to us:

- It will be very difficult to get out of a policy of extremely low or even negative rates;
- The flattening / deformation of the yield curve makes the investment risk for companies unreadable;
- Addiction to public debt puts the problem into the future with companies that increasingly rely on public support and move away from serving consumers in a sound economic calculation;
- The low rates make it very fragile industries specialized in protection against the vagaries of life, especially insurers.
- It is the Japaneseization of our economies.
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let me help you ITS-5HITHEAD
Guy tells personal story or something related to him
[Insert cool story line]

You can't actually use it as a rebuttal to events that are happening you bipolar internet psychiatrist
 
US indexes closed higher. Janet Yellen’s words and their positive impact on US bond yields reinforced the pattern observed during the so-called Trump Rally. Banking and cyclical stocks led the rise, while utilities and the oil sector underperformed. Before the Congress’s Joint Economic Committee, Janet Yellen argued that the US economy continues to expand, having accelerated after a troubled start in the year. The Fed Chairman added that “a rise in interest rates is appropriate in the short term.” This statement was more incisive than the statement from the last Fed meeting two weeks ago.
 
G'day,

Ftse bullish so far no real pullbacks. Sp 6820 zone rez 6840-50. Scalp short, buy on dips (if any lol)

Weather eye on cable and oil but think US indices will give lead.
 
swissy said:
G'day,

Ftse bullish so far no real pullbacks. Sp 6820 zone rez 6840-50. Scalp short, buy on dips (if any lol)

Weather eye on cable and oil but think US indices will give lead.
Click to expand...

Addendum: 6860-70 zone the one to watch for further upside or breakdown imho.
 
piphoe adds to his short NQ 4873

keep some powder dry for a rainy day is piphoe's philosophy
 
Facing pressure from OPEC to make a significant output reduction, Russia reiterated its readiness to freeze oil production at current levels, arguing that the offer amounted to a cut compared with next year’s plans.
A production cap would mean Russia pumping 200,000 to 300,000 barrels a day less than planned in 2017, Energy Minister Alexander Novak told reporters in Moscow on Thursday. That means a freeze would be “quite a difficult and harsh situation for us as our plans envisioned an output growth next year,” he said.
The Organization of Petroleum Exporting Countries, which is seeking to finalize its own supply cuts of as much as 1.1 million barrels a day next week, asked non-members to contribute by cutting daily production by about 500,000 barrels, Novak said.
OPEC reached a preliminary deal in September to reduce collective output to 32.5 million to 33 million barrels a day, compared with the group’s estimate of 33.6 million in October. Talks on individual production quotas continued this week with the aim of securing a final pact by the ministerial meeting in Vienna on Nov. 30.
The group will meet lower-level OPEC officials to discuss cooperation on Nov. 28, followed by a Nov. 30 breakfast meeting between ministers and non-members, including Russia, before the ministerial summit, according to people familiar with the matter.
The role of Russia is going be critical in shaping a deal, Emmanuel Kachikwu, Nigeria’s minister of state for petroleum, said in an interview with Bloomberg Television. “Russia is as interested in firming up the price as we are,” he said.
If there’s no agreement to restrict output, the International Energy Agency has said that oil prices are likely to fall in 2017. OPEC’s own estimates of supply and demand also show that the Algiers agreement would barely drain a record oil surplus next year without the cooperation of non-members.
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While Russia, the largest crude supplier outside OPEC, has reiterated its preference for a freeze over a cut for several months, members of the group including Saudi Arabia had been expecting the nation would eventually join a reduction, according to people briefed on the matter. If Russia and other non-OPEC producers balk at the idea of cutting output, the exporters’ group could reconsider pushing ahead, the people said.
Russia’s position “has remained unchanged and consistent,” Novak said Thursday. “As our president said earlier, we are ready to freeze production at the current levels.” President Vladimir Putin on Monday reaffirmed the country is willing to freeze, adding he sees no obstacles to an OPEC agreement this month after the group made major progress in overcoming differences.
Russia drafts its 2017 budget using an oil-production estimate at about 11 million barrels a day compared to an average 10.9 million expected this year. Output increased to a record 11.205 million barrels a day in November, near a post-Soviet record. The country has raised its production forecasts several times a year since 2015.
 
Has he got bored and left yet? Or maybe he's blown his account :whistling again ;)
 

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