The first sitting this year of the Federal Open Market Committee (FOMC) of the US Federal Reserve came off with no sensations. This may be for the better – because the last thing jittery times in world economics and finance need right now is shrill announcements.
The ball is clearly in the court of the 'Baghdad Quartet' – the anti-terror coalition of Russia, Syria, Iraq and Iran. Moscow and Washington maintain their entirely contradictory views on how to resolve the Syrian crisis, yet they are united in a common purpose – annihilating Daesh. Will 25 January Syria talks get off the starting blocks?
In an instant, 33% Oasis Petroleum's oil stocks will disappear from its books. Chesapeake Energy loses 45% of its oil reserves, which is 1,1 billion barrels. Bill Barrett will lose up to 40% of the declared reserves. And this is only the beginning of a magic disappearance.
The meltdown in the high-yield bonds market had to inevitably hit the US bonds market. Investment-grade bonds (LQD-ETF and similar bonds) collapsed to their lowest levels for two years on Monday. The problems kicked off when Third Avenue Management refused investors permission to take their money out of their bankrupt unit trust fund.
Amid continuous shootings in the US, the country is arming intensely. After each mass shooting, including the latest San Bernardino attack, President Obama claims that the authorities should make it harder for a potential killer to acquire weapons. The American firearms manufacturer Smith & Wesson has tripled its profits in the last quarter.
HSBC has published its end of the year report on the risks world economy will face in 2016. HSBC considers 'good' risks – the reestablishment of capital investment in the USA, and the inflow of capital into the American economy. There are two 'monstrous' risks, recession in the USA, and mistaken monetary policy in the US Federal Reserve.
Beijing is looking forward to November 30. On that day Chinese politicians and financiers will achieve their big dream - the Board of Directors of the IMF will include the yuan into the international reserves currency basket. October 1, 2016 the yuan will officially lift its global profile.
Iraqi Shiites demand from PM Haider al-Abadi to appeal to Moscow for help against ISIL. Meanwhile, the leader's arms are tied by the US's ultimatum - a cry for help to Moscow would mean a diplomatic break-up with Washington.