Brazil Central Bank Raise Rates by 150bp to 7.75% To Rein In Inflation

Banco Central do Brasil​ aggressively hiked its benchmark interest rate by 1.5% to 7.75% (consensus was for a 1% hike to 7.25%) Last meeting the Brazilian Central Bank raised 100bp to 6.25% saying the underlying inflation is above the range compatible with meeting the inflation target.

Europe Postpones Free Trade Agreement Negotiations with Australia

The European Union has postponed the next round of negotiations for a free trade agreement with Australia for a month. The move clearly is in retribution for the cancellation of the French $90 billion submarine contract.

Brazil Central Bank Raise Rates by 100bp to 6.25% To Rein In Inflation

Banco Central do Brasil​ hiked its benchmark interest rate by 100bp to 6.25% widening the Brazilian Real spread to the US Dollar. The Brazilian central bank said the underlying inflation is above the range compatible with meeting the inflation target. Earlier in the day the US Federal Reserve left rates unchanged.

US Senate Pass $1.9 trillion American Rescue Stimulus Plan

President Biden’s first major legislative initiative, the $1.9 trillion ‘American Rescue Plan’ stimulus bill passed a deeply divided Senate on Saturday in a vote 50-49. Democrats pushed through a loosely termed “pandemic aid plan” that includes an extraordinary increase in safety net spending.

Violent Hong Kong Pro-Democracy Protests Ahead of China National Day

Protesters and police continue to clash with no end in sight in Hong Kong. Protests turned violent over the weekend as the city braces for worse heading into China’s National Day this week. Riot police fired multiple volleys of tear gas while demonstrators hurled Molotov cocktails.

Number One Risk for 2018 Is A Brutal Correction of Stock Prices Says French Watchdog

France’s market watchdog Autorite des Marches Financie (AMF) sees as the number risk for 2018 a brutal correction of stock prices. Goldman Sachs Bull/Bear Index is at the highest in almost 50 years. Analysts preach this time its different, is it?

Australian Politicial Chaos and China Relations Hurt Australian Dollar

Australia economically is resurgent however Australian politics are in chaos after Prime Minister Malcolm Turnbull resigned with a four way leadership showdown Friday. Australia has ruffled China with it’s 5G decision to block Chinese carriers.