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A reform proposal that would keep the European Union's deficit limit to 3% of gross domestic product is getting traction in one crisis-scarred corner of southern Europe, namely Cyprus. Read More: Lift Euro-Zone Debt Rule Limit to 100% of GDP, ESM Paper Says "What is important is to remain disciplined regarding the deficit criteria, and there the ESM hasn't suggested an increase in the 3% level", Cyprus Finance Minister Constantinos Petrides said. [Extracted from the article]

The stock market is relatively quiet as investors await inflation data, but meme stocks like GameStop and AMC Entertainment are experiencing significant surges. Wall Street has become more prepared for these meme rallies and has developed strategies to profit from them. Retail traders are being drawn into the casino-like atmosphere of meme stock trading, with social media personalities and influencers promoting these stocks. However, experts warn against buying stocks based on memes, as those promoting them are likely to sell while others are buying. Trading platforms and market-making firms can profit from the increased volume of meme stock trading. While some investors are making significant gains, others are facing losses. Hedge funds have adjusted their risk controls to limit their exposure to these volatile stocks. [Extracted from the article]

But she has also regularly highlighted the role that the FHLBs play in providing liquidity to smaller banks, who often don't have the same funding sources as big banks. (Bloomberg) -- Two housing-policy experts whose previous recommendations have been closely followed by the Biden administration are defending the Federal Home Loan Banks, raising the stakes in a debate over whether a major overhaul is needed. [Extracted from the article]

In the week after Silicon Valley Bank's March collapse, the home loan bank system issued a record $304 billion in debt as banks rushed for cash. (Bloomberg) -- Two housing-policy experts whose previous recommendations have been closely followed by the Biden administration are defending the Federal Home Loan Banks, raising the stakes in a debate over whether a major overhaul is needed. [Extracted from the article]

While recent financial incentives under Modi offered Apple a cost-efficient path to set up shop in India, the California-based company is still making a fraction of its iPhones in the nation. (Bloomberg) -- On paper, India's chances of attracting global manufacturers look rosy. [Extracted from the article]

While recent financial incentives under Modi offered Apple a cost-efficient path to set up shop in India, the California-based company is still making a fraction of its iPhones in the nation. (Bloomberg) -- On paper, India's chances of attracting global manufacturers look rosy. [Extracted from the article]

(Bloomberg) -- Germany is resisting a key element of a push to simplify European Union budget rules led by the bloc's executive and some other member states. The EU's Stability and Growth Pact requires the 27 member states to aim for budget shortfalls of less than 3% of gross domestic product and debt below 60%. [Extracted from the article]

(Bloomberg) -- Faced with soaring prices and the prospect of winter blackouts, Finnish households have already started saving power. Household electricity consumption fell 13.5% year-on-year in September, after an 8.5% decline in August, industry group Finnish Energy said in a statement on Thursday. [Extracted from the article]

(Bloomberg) -- British supermarkets are taking a hit in the credit markets after inflation accelerated to the highest in 40 years. The additional debt meant that both supermarket chains were subsequently downgraded by credit ratings agencies into junk territory, pushing up their borrowing costs even before the cost of living crisis gripped the UK. [Extracted from the article]

Steve Mnuchin, former Treasury secretary under Donald Trump, and his firm Liberty Strategic Capital have led a group of investors in injecting over $1 billion into New York Community Bancorp (NYCB), effectively taking control of the struggling lender. The deal has caused NYCB's stock to soar, potentially earning the investors billions more. Mnuchin and his ally, former Comptroller of the Currency Joseph Otting, have a history of controversial deals, including the purchase of failed mortgage lender IndyMac after the 2008 financial crisis. The plan for NYCB is to diversify its portfolio and reduce its concentration in commercial real estate. [Extracted from the article]

The bonds are used by lenders to reduce the financial resources they have to retain against loans on their balance sheet. The lender recently provided a significant risk transfer for a domestic bank on an aggregate portfolio exceeding $5 billion, he added, declining to name the bank. (Bloomberg) -- Banks are reviving the sale of credit-linked notes, a type of synthetic securitization that's been relatively uncommon in the US since the financial crisis, ahead of new rules that will require them to hold more regulatory capital. [Extracted from the article]

Yi's comments come as policymakers in China weigh the effectiveness of measures taken so far to shore up growth in the world's second-largest economy. (Bloomberg) -- China's economy is still in the "recovery stage" and the nation will need to "appropriately" ramp up support to achieve the government's growth target of around 5% this year, the former central bank chief Yi Gang said. [Extracted from the article]

(Bloomberg) -- Stocks gained ahead of economic data that will help shape Wall Street's views on how close the Federal Reserve is from ending its rate hikes. "Bullishness is relatively high while the Fed remains shy of its inflation target", John Stoltzfus, chief investment strategist at Oppenheimer & Co., wrote. [Extracted from the article]

"Bullishness is relatively high while the Fed remains shy of its inflation target", John Stoltzfus, chief investment strategist at Oppenheimer & Co., wrote. (Bloomberg) -- Stocks rose ahead of economic data that will help shape Wall Street's views on how close the Federal Reserve is from ending its rate hikes. [Extracted from the article]

(Bloomberg) -- Stocks rose ahead of economic data that will help shape Wall Street's views on how close the Federal Reserve is from ending its rate hikes. "Bullishness is relatively high while the Fed remains shy of its inflation target", John Stoltzfus, chief investment strategist at Oppenheimer & Co., wrote. [Extracted from the article]

(Bloomberg) -- Short sellers are raking in profits by betting against a part of the US equity market overlooked by most investors: small-cap stocks. Bank of America's Savita Subramanian, for example, said Monday that small caps are expected to outperform large caps, with the firm's regime indicator signaling US equities have entered the recovery phase of the business cycle. [Extracted from the article]

The market isn't the economy, but can be considered a leading indicator as rebounds in stocks tend to be followed by recoveries in the business cycle. (Bloomberg) -- Stocks weathered the Jackson Hole confab to rebound this week. [Extracted from the article]

(Bloomberg) -- A recession is coming, and ESG investors may be among those who stand to lose the most. "We are headed towards a recession as rates remain higher with inflation proving sticky", said Penny, who doesn't invest directly in stocks and bonds but instead buys funds. [Extracted from the article]

"We are headed towards a recession as rates remain higher with inflation proving sticky", said Penny, who doesn't invest directly in stocks and bonds but instead buys funds. (Bloomberg) -- A recession is coming, and ESG investors may be among those who stand to lose the most. [Extracted from the article]

(Bloomberg) -- Fresh fears over a recession-inducing credit crunch are spurring bond bulls to ramp up bets that the Federal Reserve will embark on the most abrupt policy shift in almost four decades. All fixed-rate Treasury yields ended the week more than a percentage point below the Fed's policy-rate threshold ahead of next week's quarterly auctions of new 10-year notes and 30-year bonds. [Extracted from the article]

PacWest said in a statement that core deposits have risen since March, and it "has not experienced out-of-the-ordinary deposit flows following the sale of First Republic Bank and other news." (Bloomberg) -- PacWest Bancorp, First Horizon Corp. and Western Alliance Bancorp led a renewed slide in the shares of US regional lenders, adding to concern for a sector that's been rattled in recent months by the collapse of multiple firms. [Extracted from the article]

(Bloomberg) -- PacWest Bancorp, First Horizon Corp. and Western Alliance Bancorp led a renewed slide in the shares of US regional lenders, adding to concern for a sector that's been rattled in recent months by the collapse of multiple firms. PacWest said in a statement that core deposits have risen since March, and it "has not experienced out-of-the-ordinary deposit flows following the sale of First Republic Bank and other news.". [Extracted from the article]

(Bloomberg) -- The severe contraction in the US housing market over the past year looks like it may be coming to an end, and the bottoming-out is raising hopes on Wall Street that the country could avoid a recession altogether. Most economists expect the US to fall into a recession sometime in the next year, as the Fed's aggressive interest-rate increases to tame inflation dent growth and raise unemployment. [Extracted from the article]

Jeffrey Roach at LPL Financial: "The Fed may still decide to hike by 0.25% at the next meeting, but this report means that the Fed will likely continue hiking into the summer. (Bloomberg) -- Wall Street's reaction to hotter-than-estimated inflation data suggested growing bets the Federal Reserve has a long ways to go in its aggressive tightening crusade, making the odds of a soft landing look slimmer. Mohamed El-Erian says financial markets are starting to doubt whether the Fed can bring inflation down to its target. [Extracted from the article]

(Bloomberg) -- Wall Street's reaction to hotter-than-estimated inflation data suggested growing bets the Federal Reserve has a long ways to go in its aggressive tightening crusade, making the odds of a soft landing look slimmer. Jeffrey Roach at LPL Financial: "The Fed may still decide to hike by 0.25% at the next meeting, but this report means that the Fed will likely continue hiking into the summer. [Extracted from the article]

Jeffrey Roach at LPL Financial: "The Fed may still decide to hike by 0.25% at the next meeting, but this report means that the Fed will likely continue hiking into the summer. (Bloomberg) -- Wall Street's reaction to hotter-than-estimated inflation data suggested growing bets the Federal Reserve has a long ways to go in its aggressive tightening crusade, making the odds of a soft landing look slimmer. [Extracted from the article]

"There's little room for upside in stocks right now given the inflation news, current market valuations after the January rally, and a weak Q4 earnings season", said Brian Overby, senior markets strategist at Ally. (Bloomberg) -- Wall Street's reaction to hotter-than-estimated inflation data suggested growing bets the Federal Reserve has a long ways to go in its aggressive tightening crusade, making the odds of a soft landing look slimmer. Jeffrey Roach at LPL Financial: "The Fed may still decide to hike by 0.25% at the next meeting, but this report means that the Fed will likely continue hiking into the summer. [Extracted from the article]

(Bloomberg) -- Wall Street's reaction to hotter-than-estimated inflation data suggested growing bets the Federal Reserve has a long ways to go in its aggressive tightening crusade, making the odds of a soft landing look slimmer. Jeffrey Roach at LPL Financial: "The Fed may still decide to hike by 0.25% at the next meeting, but this report means that the Fed will likely continue hiking into the summer. [Extracted from the article]

Jeffrey Roach at LPL Financial: "The Fed may still decide to hike by 0.25% at the next meeting, but this report means that the Fed will likely continue hiking into the summer. (Bloomberg) -- Wall Street's reaction to hotter-than-estimated inflation data suggested growing bets the Federal Reserve has a long ways to go in its aggressive tightening crusade, making the odds of a soft landing look slimmer. Read: Fed Officials Flag Risk of Sticky Inflation as PCE Comes in Hot Mohamed El-Erian says financial markets are starting to doubt whether the Fed can bring inflation down to its target. [Extracted from the article]

(Bloomberg) -- Wall Street's reaction to hotter-than-estimated inflation data suggested growing bets the Federal Reserve has a long ways to go in its aggressive tightening crusade, making the odds of a soft landing look slimmer. Stock Bull Case Thwarted by "Bumpy Landing" Views: Markets Wrap Read: Fed Officials Flag Risk of Sticky Inflation as PCE Comes in Hot Mohamed El-Erian says financial markets are starting to doubt whether the Fed can bring inflation down to its target. [Extracted from the article]

Officials may need to raise rates as high as 6.5% to defeat inflation, according to new research that was critical of the central bank's initially slow response to rising prices. Stocks Hit With Inflation Heading the "Wrong Way": Markets Wrap (Bloomberg) -- Stocks slumped after a hotter-than-estimated inflation reading bolstered the case for the Federal Reserve to keep rates higher for longer, which could make the odds of a soft landing look slimmer. [Extracted from the article]

(Bloomberg) -- The new era of runaway inflation means it's time to stop measuring active investment managers' performances against benchmarks like the S&P 500. To Vincent Berard, head of product strategy for BNP Paribas Global Markets' quant team, a more sensible approach is incorporating the inflation factor into portfolio constructions. [Extracted from the article]

For its own part, FTX had raised around $4 billion in funding across its network of affiliated companies, which included Alameda Research, a trading house co-founded by Bankman-Fried, FTX Ventures and a separate exchange for American investors. (Bloomberg) -- Few could have anticipated the breathtaking collapse of Sam Bankman-Fried's multibillion-dollar crypto empire. FTX, along with crypto itself and a host of other market gimmicks, from meme stocks to stay-at-home tech fads and special purpose acquisition companies, flourished as the Covid-19 pandemic spurred the Federal Reserve to cut interest rates to zero and leave them there for two years. [Extracted from the article]

Is the exchange rate moving because investors deem a particular country very risky, or is there just an imbalance in the currency market? RM: The AEA said when presenting you the award that one of your key insights was "the recognition that financial-market noise, not economic fundamentals, may be the main driver of exchange rates." So, in order to build a model that's consistent with the behavior of the exchange rate, it really has to be that much of the fluctuations in exchange rates come from changes in sentiment in financial markets. (Bloomberg Markets) -- Oleg Itskhoki, a Russian-born economics professor at the -University of California at Los Angeles, joined an elite club when he won this year's John Bates Clark Medal. [Extracted from the article]