Why volatility is bad news for investment banks Recent market volatility isn’t good news for investment banks, JPMorgan’s Kian Abouhossein and team argued, and leaves Goldman Sachs and Morgan Stanley near the bottom of their pecking order. They explain: "Although volatility is good for investment banks, recent market turmoil has led to a spike in market volatility (avg VIX +100% since 15 Aug) which poses some residual short positioning risks such as correlation. Generally ...
Morgan Stanley Falling prices have impacted heavily on investments in the commodities markets. Many companies are now steering well clear of commodities on the whole. More and more of the big companies are now staying away from commodities trading, but this has paved the way for companies like Castleton Commodities International to become one of the major players in the industry. Of equal importance is the fact that analytical ...
Goldman Sachs: The employment components of various manufacturing surveys have been weak (Dallas Fed manufacturing survey, Chicago PMI & the ISM services report)Mining sector job losses may persist and continue to be a dragGS say that the consensus forecast has overestimated jobs growth in May for the last few years, by 56,000 on average over the previous 5 yearsWarm weather likely inflated the jobs number in April, but this may have ...
The battle to control how people pay for stuff is heating up and Goldman Sachs wants a piece of the action. In its first publicly announced bitcoin-related investment, Goldman said on April 30 that it co-led a $50 million financing round for Circle, a bitcoin startup led by serial tech entrepreneur Jeremy Allaire. The startup offers a new digital wallet meant for everyday consumers. China’s IDG Capital Partners was the other lead investor ...
1- In the 3 weeks leading up to the last FOMC meeting, the Dollar went parabolic, appreciating almost 5% versus the majors. Dollar strength was especially noticeable for EUR/$. It is well understood that the FOMC does not target the Dollar, merely taking the greenback as an input into its forecasts. But the parabolic rise in the USD into the meeting is certain to have been noticed, not least since the last vestige of forward guidance (the "patient" ...
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