SNB reveals carbon footprint of its portfolio for first time
The Swiss National Bank disclosed the carbon footprint of its investment portfolio for the first time, responding to critics who have demanded it take a more active stance on climate change.
The SNB said it’s “not authorized to pursue structural policies” and pursuing such actions could make it more difficult for its to fulfill its primary mandate of inflation control.
The SNB’s environmental rules only ban coal miners. That means its holdings include firms involved in fracking, and the oil and gas industries.
Source: Bloomberg
Financial stress is the lowest since the Fed began raising rates, which begs the question -- why cut this year? 🤔
Source: Markets & Mayhem, St Louis Fed
Nikkei reported BOJ conducted a gensaki (reverse repo with JGB collateral) operation Monday for the first time in about a month.
*Article cited broad upward pressures on rates amid heightening expectations of an imminent BOJ rate hike, leading traders to conclude the measure was meant to prepare for market reactions Source: C.Barraud https://lnkd.in/e8c8ubcx
Central banks are hoarding gold like never before...
Source: BofA
Central banks demand matters a lot more than ETF flows for gold
Source: Bob Elliott, Bloomberg, Macrobond, The Daily Shot
The Atlanta Fed's gauge of sticky inflation has risen to about 5% on a 3-month annualized basis.
Inflation is moving in the wrong direction for the Fed, so it's interesting that the market's base case is still that the Fed is going to cut rates by about 100bp by January 2025. Source: Bloomberg, Lisa Abramowitz.
WARNING: Reverse Repo is falling off a cliff.
And has declined from more than $2500 billion to less than $500 billion since 2023. Source: Game of Trades
ECB’s Lagarde signals June rate cut w/2% inflation in sight.
Markets agree and price in 97bps cut for 2024. Source: Bloomberg, HolgerZ
