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Can the world's central banks save the beef market?



To think that central banks could save the beef market is tempting. After all, the promise of interest rate cuts and other stimulus measures has helped the stocks sooner. And investors clearly need more than a tariff delay to ease recent downfall and hardship.

The problem is that the central bank's policy is not holding back the global economy, and more monetary stimulation will not help, according to Peter Boockvar, head of investment responsibility at Bleakley Advisory Group.

"The Fed does not have the cure for what is us, just as [European Central Bank] and [Bank of Japan] are not at this time," he told me. [19659004] Federal fund rates in the United States are already low by historical standards, ranging from 2% to 2.25%. Europe has had ultra-low and even negative interest rates for years. Cheap loan training is not really the problem.

"There are no business investments being held back because of where the interest rates are," Boockvar said.

Despite this, central banks are likely to deliver what investors want when they meet again. in September.

As my colleague Paul R. La Monica in New York states: "Traders are pricing with a 1

00% chance that the Fed will cut rates again at that meeting. The question is, how much? There is currently an almost 80% chance of another quarterly cut, which means investors believe there is also a 20% chance that the Fed will cut interest rates by half a percentage point. "

And it won't just be the Fed. Olli Rehn, a top ECB official, said last week it would be "important" to come up with a "substantial and consistent policy package" in September.

What's next? Here's more from Paul: "Minutes from the Fed's last meeting – the one where the central bank cut its interest rates for the first time since 2008 – will be released Wednesday afternoon. Fed supporters (including maybe President Donald Trump?) Are likely to pore over minutes for clues about future

… Remember, however, that these minutes are from a meeting that took place three weeks ago – way back July 31. MYE has happened since then. The US and China declared yet another trade weapon. -year-old and 10-year Treasuries reversed, while the 30-year return hit record lows. And shares have been on a roller coaster. " a speech this Friday in Jackson Hole, Wyoming, to signal the Fed's next move. Expect expectation to build throughout the week.

It will not be easier for Hong Kong businesses

Last week, the tense political situation in Hong Kong took its first major business. The question now: Is there more?

Cathay Pacific CEO Rupert Hogg resigned on Friday following a violent week for Hong Kong's leading airline. The company was caught up in the political storm over workers' participation in the city's protests, which have angered Beijing. Flights were canceled as protesters ransacked the airport and bookings are down.
The city's business elite is clearly getting nervous. Li Ka-shing, Hong Kong's richest person, has put her voice to calls for protests as protests begin to hit Hong Kong's economy.

"In the name of love, turn away from anger," read an ad Li posted in several local newspapers on Friday.

Week ahead

Monday: Eurozone inflation; Estee Lauder, Weibo and Baidu Revenue

Tuesday: Home Depot, Kohl & # 39; s, TJX, Urban Outfitters Revenue

Wednesday: Fed minutes for July; US existing home sales; Lowe's, Target, Nordstrom, L Brand revenue

Thursday: German production data flash; Consumer confidence in the euro area; Dick's Sporting Goods, Gap, HP, and Salesforce Revenue

Friday: Powell's Jackson Hole Speech; Japan inflation; US new home sales; Foot Locker Revenue


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