In this episode of Influencers, Andy is joined by NYC mayoral candidate and former Citigroup executive, Ray McGuire to discuss his 2021 run for New York City mayor, what he expects from Joe Biden’s administration, and why the U.S. needs more economic relief and stimulus.
(Bloomberg) -- European Central Bank officials have asked staff to propose new ways to measure financial conditions in the euro area, potentially assisting future decisions on how much stimulus the region’s pandemic-hit economy needs.The central bank’s Monetary Policy Committee was tasked with making proposals in time for the March policy meeting, according to people familiar with the debate. Some officials want new ways to measure the impact of the ECB’s record-low interest rates and asset purchases on credit conditions, the people said, who asked not to be identified as the discussions were private.An ECB spokesman declined to comment on the discussions.The ECB ramped up its monetary policy support to the economy in December and partly justified the decision with the need to preserve “favorable” financing conditions for businesses and households. As the meaning of that term hasn’t been made clear yet, investors have little insight into what conditions would prompt further action from the Frankfurt-based central bank.President Christine Lagarde was quizzed on Thursday about which indicators officials are considering in their judgment, to which she responded saying she and her colleagues would take a broad approach.“Our assessment of favorable financing conditions is not driven by any single indicator,” she said. “It is a holistic approach. It takes into account multiple indicators. Bank lending is one, credit conditions is one, corporate yields is one, sovereign bond yields is one, and it is by combining all of those that we try to assess whether financing conditions are favorable or not.”Chief economist Philip Lane oversaw discussions on various options during their meeting this week -- ranging from choosing a more or less loose set of indicators to building fixed indexes, the people said. They also highlighted that -- whatever the conclusion -- sufficient flexibility and room for judgment needed to be maintained. Not all ECB officials agreed on the need for new gauges.“We see a big risk that the adoption of an intermediate target -- i.e. financial conditions -- takes the focus away from the ultimate target -- i.e. inflation,” Greg Fuzesi, an economist at JPMorgan Chase & Co., said in a report. “In particular, the current level of financial conditions is clearly not calibrated to boost inflation to the target over a normal timeframe.”The euro edged lower on Friday morning and Italian bonds extended declines, pushing the spread on the nation’s 10-year yields over German debt to the highest since November.During a separate seminar on policy instruments that’s part of the ECB’s strategic review, officials also discussed the future of its asset-purchase plans, and whether elements of the pandemic emergency purchase program should remain and be applied to an older asset-purchase program.Some officials argued combining features of the PEPP and the Asset Purchase Program would allow the ECB to maintain some flexibility on securities buying that proved successful in keeping in check the spreads of Italian, Spanish, Greek and other sovereign debt yields during the pandemic. Others insisted the pandemic program should remain a temporary tool.The seminar discussed other broad concepts, including yield-curve control, as part of continued talks tied to the ECB’s strategy overhaul, rather than proposals to be immediately put to use. The ECB is set to present some of the conclusions from that exercise after the summer.(Updates with comment from economist in eighth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Bitcoin closed in on the lowest in three weeks as the cryptocurrency’s sizzling rally gives way to pessimism that prices are too high.Bitcoin tumbled as much as 11.3% Thursday, sliding below $31,000. The largest digital asset has trended lower ever since breaking through $40,000, and losses have accelerated in the past two days.While soaring crypto prices fueled a speculative mania among the Robinhood crowd, it’s also made professional investors reluctant to buy at the top. Prices are still more than double the levels from early November and some technical analysts have argued that a retracement is overdue. It last traded below $30,000 on Jan. 5.“Bitcoin has already achieved the fastest-ever price appreciation of any must-have asset,” wrote JPMorgan Chase & Co. strategists John Normand and Federico Manicardi in a report on Thursday. “Current prices are so far above production costs that mean-reversion lower in returns is a recurring concern.”Bitcoin was down 10% to $31,459 as of 4:51 p.m. in New York. Prices are on track for their first back-to-back weekly decline since early October.Adding to the anxiety, a report in a trade blog suggested that there had been what’s known as a double purchase, where the same “coin” is used in two separate transactions. Industry veterans downplayed the notion.“This is part of the normal operation of the blockchain to allow for a highly parallel system,” said Jacob Illum, chief scientist at researcher Chainalysis. “Occasionally, the Bitcoin blockchain will have competing mined blocks, but only one chain-forming from competing blocks will be accepted by the network.”However, should a double spending event actually occur, it would be a cause for concern in the market, according to Edward Moya, senior market analyst at Oanda.Chart patterns suggest the market is consolidating within a “bullish pennant” formation, according to Matthew Weller, head of research at Gain Capital Group LLC. A sharp move higher could push prices above $50,000, while a break lower would point to a deeper retracement below $30,000, he predicted.“It would likely take a more severe drop to erase the established uptrend,” Weller wrote in a note.Despite the selloff, Wall Street hasn’t lost interest in the new asset class. On Wednesday, BlackRock Inc. filed paperwork to add Bitcoin futures as an eligible investment in two funds, the first time the money manager is offering clients exposure to cryptocurrency.Read More: BlackRock Takes First Step Into Crypto Exposure in Two Funds(Updates prices.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.