Finance Investment Trading

FHA Insurance Rate Cut Suspended

FHA insurance rate cut was suspended by HUD. The insurance rate cut was announced by the Obama administration on January 9 and scheduled to go in effect on January 27. The rate cut was justified by relative health of the fund with capital reserve reaching 2.35% compared to 2% required by law. The new Trump …

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China

China’s ‘Iron Fist’ Policy

As Chinese leaders preach openness and free market all around the world, their policy at home is quite opposite. While certain economic freedoms exist, the ruling Communist party is keeping total control over significant chunk of the industry, information space and judicial system. Bloomberg reports: Xi’s speech at the World Economic Forum came days after …

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Finance Investment Trading

OPEC May Not Deliver Promised Cuts in Oil Production

OPEC and Russia may not deliver cuts in oil production. OPEC countries have long history of not following the limits on oil production. This time a panel of representatives of the member countries was appointed in order to oversee the production cuts (read full article): The dealmakers have created a panel to verify the cuts, …

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Finance Investment Trading

China is Selling US Treasuries to Support Yuan

China is rapidly selling the US Treasuries in order to support yuan. According to November data, Chinese stock of US Treasuries was reduced by $66 billion in November, $194 billion in the previous 6 month and $215 billion in the previous year. Those are record changes in US Treasury holdings, leaving China, the long time …

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Finance Investment Trading

Bitcoin Market is Dominated by China

A structural change in bitcoin market occurred over the last five years with the US dollar almost completely replaced by Chinese yuan in bitcoin trading. Yuan started playing the dominant role as most of the bitcoin transactions are taking place on the exchanges located in China. The following graph illustrates the change over time: The …

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Finance Investment Trading

China May Restrict Bitcoin Trading

China may introduce tighter regulations on bitcoin trading, that will affect and possibly restrict operation the major Chinese bitcoin exchanges. Chinese bitcoin exchanges are responsible for overwhelming majority of all bitcoin transactions. The exact share of transaction is unknown: the reported number of 95% is biased and include ‘fake’ transactions (exchange clients buying bitcoins from …

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Finance Investment Trading

Oil Prices in 2017

Oil prices may not be posed to rise in 2017. The effect of reduction of oil production by OPEC countries and Russia and collapse in China’s oil production may be mitigated by growing oil production in non-OPEC countries such as Libya, Iran, Iraq and Algeria, as well as the increase in US shale oil output. …

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Finance Investment Trading

Strong Dollar May Be Dangerous to the Global Economy

Strong dollar may cause financial crises or slowdown in some developing countries, including Mexico and China. Dollar may strengthen in 2017 due to new US economic policies, resulting in short term economic growth, as well as possible increase in Fed interest rates. Fortune reports: On Tuesday, speaking on a panel at the World Economic Forum, …

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Finance Investment Trading

China is Further Reducing Oil Production

Domestic oil production in China is expected to continue its fall in 2017. China is one of the largest oil producers delivering 4 million barrels per day. Bloomberg reports: China’s production is forecast to fall by as much as 7 percent this year, extending a record decline in 2016 … That’s about the same size …

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