Update 28th June

28th June 2010 by Shaun Richards

Apologies for the lack of new content today. I have been away for a long weekend and can thoroughly recommend the beauty of the Hertfordshire Countryside. However I have been a little delayed on my return so my next main article will be tomorrow unless something particularly significant happens. It is not the (unaccustomed) sun or England’s failure which has  caused this! Congratulations Germany you were much better than us.

As two thoughts for you.

1. The Swiss Franc is under pressure and this poses a lot of questions.

2. I will be looking further at Greece issuing bonds again.

6 thoughts on “Update 28th June”

  1. andy of yarm says:

    This is terrible.What do I pay my £19 per month for?

    Oh my mistake,your blog is free and wonderful.Hope you had a great weekend.

  2. Paul says:

    I also hope you had a great weekend. You may be pleased to know that you were hotter in Hartfordshire than I was in Cyprus.

    1. Thank you Paul

      I am sure you are better equipped to cope with it in Cyprus and of course there is the saying “only mad dogs and Englishmen go out in the midday sun ” although now I mention it I do not remember seeing any dogs….

  3. theyenguy says:

    Welcome back.

    You might consider following theTyler Durden 06-28-2010 article Spanish Banks In Panic Mode Over Maturity Of ECB’s €442 Billion Long-Term Refinancing Operation.

    Best Regards


  4. Drf says:

    Hi Shaun, hope you have an excellent weekend in the sun.

    Presumably by “pressure” you mean pressure not to rise? The Swiss Franc seems to be still rising against most currencies? What do you make of the latest comments on monetary policy by Bank of International Settlements?

    1. Thanks for the good wishes.

      As to the Swissy then I meant upward pressure (they would love some downward pressure). The current situation reminds me of the economics textbooks that refer to a “small open economy witha floating exchange rate”, when I was studying that always translated itself to mean UK to me. However Switzerland fits the definition much more neatly and they have a real conundrum. At 1.323 they also have quite considerable losses on their previous intervention….

      One bit of the report from the BIS that my eyes did alight on was the speech itself given by its General Manager and one section in particular.

      “Central banks need to maintain their medium-term focus in setting monetary policy. Although core inflation is low at present in the major advanced economies, and there is little reason to expect a sharp near-term rise, we should remain vigilant about risks a few years ahead. In current circumstances, when public sector debt is rising so rapidly, any expectation that central banks would be prepared to tolerate higher inflation could easily unsettle the markets. ”

      It made me think of my views on current government bond yields as expressed earlier… and that the UK is apparently not a major advanced economy.

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