To get the 'good debt' tick, infrastructure needs to be fit for the future
May 09, 2017 15:06 pm UTC| Insights & Views Economy
In distinguishing between good and bad debt, federal Treasurer Scott Morrison equates good debt with infrastructure investment. However, not all infrastructure investment announced in the budget is necessarily good. We...
Disagreements on what Europe means go back to the 16th century
May 09, 2017 15:03 pm UTC| Insights & Views
It is tempting to regard the history of Europe as a tale of gradually closer union, an evolution now imperilled by the forces of nationalistic populism that have brought Brexit and the growth of far-right political parties...
FxWirePro: Reshuffling of commodity FX space, preferring TRY among EMEA EMFX
May 09, 2017 13:55 pm UTC| Research & Analysis Insights & Views
We have been shifting our portfolio by rotating out of long positions in commodity currencies, preferring commodity importers. We believe risks are skewed for EMEA EM commodity currencies to underperform in the months...

May 09, 2017 12:35 pm UTC| Research & Analysis Insights & Views
Were adding EURAUD to boost our overall EUR exposure as the passage of the French election this weekend should clear the way for an intensification of portfolio inflows into the region in keeping with the cyclical...

Australia's consumer confidence shows signs of stabilisation, but remains below long-term average
May 09, 2017 11:57 am UTC| Insights & Views Economy
Australias consumer confidence ticked up a modest 0.9 percent in the week ending 7 May, data released earlier today showed. The index edged higher to 112.3 just below its long term average. Households near and long term...

FxWirePro: A run through on buying 2M25D risk-reversals against shorting 9M35D USD puts/CNH calls
May 09, 2017 10:20 am UTC| Research & Analysis Insights & Views
Hedging back-end USDCNH option shorts with front-end risk-reversals (equal USD notionals on all legs) does not detract from short vol returns while reducing drawdowns by 30%-40% Cum. P/Ls (bp USD) from i) selling 9M 35D...

May 09, 2017 10:13 am UTC| Research & Analysis Insights & Views
Brexit caused two Sterling debacles, first in June with the vote and then after the summer when PM May suggested a hard exit. In spite of GBPJPY downtrend, election clears the way for a longer and smoother Brexit...