JUST IN: The six biggest U.S. banks are expected to set aside nearly $5 billion in the third quarter to cover future loan losses, Wall Street analysts said to Reuters, as lenders brace for a potential global recession.
— unusual_whales (@unusual_whales) October 11, 2022
FED’S MESTER: THE FED HAS MADE NO PROGRESS IN LOWERING INFLATION.
Translated: brace yourselves for tomorrow’s data
— 🅰🅻🅴🆂🆂🅸🅾 (@AlessioUrban) October 11, 2022
FED MESTER: THE FED IS AWARE OF GLOBAL MARKETS, BUT WE HAVE A DOMESTIC MANDATE.
— Breaking Market News ⚡️ (@financialjuice) October 11, 2022
GBPeso 1-year implied volatility is leading the currency crisis across the globe pic.twitter.com/zE1bB4inuV
— 🅰🅻🅴🆂🆂🅸🅾 (@AlessioUrban) October 12, 2022
Absolutely mind-boggling. Central banks can hardly hike rates any more without pension funds, the housing market, or hedge funds blowing up. It's frightening how f*cked we are.
— Marc-André Fongern (@Fongern_FX) October 12, 2022
Solvency of Financial Institutions Could Be Bigger Threat Than Liquidity in Next Crisis: MW
Neil Shearing, group chief economist at Capital Economics, says solvency crises pose a bigger threat than liquidity crises.
IMF Chief Economist: ‘Worst Is Yet To Come’ for Global Economy: Update
More than a third of the global economy is expected to contract this year or next, while the three largest economies — the United States, the European Union, and China — will continue to stall.
JPMorgan’s Jamie Dimon: S&P 500 Bear Market: Brutal, Far From Unimaginable
Jamie Dimon says don’t be surprised if the S&P 500 loses another one-fifth of its value. While such a plunge would fray trader nerves and stress retirement accounts, history shows it wouldn’t require any major departures from past precedents to occur.
Funding Panic Imminent? Fed Quietly Sends $3.1 Billion To Switzerland Via Swap Line
Fast forward two weeks when there still hasn’t been any formal announcement from the Fed, but every so quietly – and just as we expected – the Fed shuttled $3.1 billion to the Swiss National Bank to cover an emergency dollar shortfall.
Bailey’s Warning Sends Shivers Through Fragile Global Bond Markets
Bank of England Governor Andrew Bailey’s blunt warning that fund managers have to cut vulnerable positions before the central bank ends debt purchases pummeled UK gilts and sent a shiver around already-fragile global bond markets. UK government bond yields rose, with the rate on 20-year gilts reaching the highest level since the Lehman crisis in 2008, as the strict deadline…