One of the most important and simultaneously intangible aspects of the huge wash of money rushing around the world is the carry trade. At its most basic, it is an enormously simple, effective, and fast way of making money.
The first risk is that the interest rate differential will be wiped out by a decline in the currency of the country you invest in. For example, Turkey’s three-month deposit rate currently stands at 28%, while the same rate in the US about 2.6%. So if you invest, say, one billion dollars, in three months you will make a profit of $254-million.
The danger of interest rates differences becoming narrower has been what has been restricting the carry trade for the past year or so. But recently, it seems, US interest rates are unlikely to change and may even go down. Emerging market interest rates, too, have been pretty steady. Currencies have been trading in a range, and some emerging market currencies have even been strengthening. All of this is just heaven for the carry trade.
Abbiamo riassunto questa notizia in modo che tu possa leggerla velocemente. Se sei interessato alla notizia puoi leggere il testo completo qui. Leggi di più:
Italia Ultime Notizie, Italia Notizie
Similar News:Puoi anche leggere notizie simili a questa che abbiamo raccolto da altre fonti di notizie.
BUSINESS MAVERICK ANALYSIS: Elizabeth Warren’s big ideas on Big TechThe debate about how to regulate the tech sector is eerily reminiscent of the debate over financial regulation in the early 2000s. Fortunately, one US politician has mustered the courage to call for a total rethink of America’s exceptionally permissive merger and acquisition policy over the past four decades.
Fonte: dailymaverick - 🏆 3. / 84 Leggi di più »
BUSINESS MAVERICK ANALYSIS: Trading on US-China deal to deliver the goodsGlobal free trade is one of those amazing benefits to global wealth. The IMF has measured a 60% reduction in prices in emerging economies since 1990 due to freer trade. But it’s disparities and contortions are also heavily criticised. Consequently, the US-China trade talks are among the most controversial issues of the day. The question is: how will completing the deal — or not completing it — affect SA?
Fonte: dailymaverick - 🏆 3. / 84 Leggi di più »
Business Maverick: China Hails `New Consensus’ on Trade, Though Deal Not Ready YetChina and the U.S. claimed progress in talks to end their trade war, with President Xi Jinping pushing for a rapid conclusion and President Donald Trump talking up prospects for a “monumental” agreement that may still be some weeks away.
Fonte: dailymaverick - 🏆 3. / 84 Leggi di più »
Business Maverick: Friday, April 5: Five Things You Need to Know to Start Your DayTrade deal gets closer, some small progress on Brexit, and more bad news for German manufacturing. Here are some of the things people in markets are talking about today.
Fonte: dailymaverick - 🏆 3. / 84 Leggi di più »
Business Maverick: Ghosn’s Prospects Darken as Prosecutors Throw Him Back in JailCarlos Ghosn’s prospects for a legal comeback dimmed after Japanese prosecutors arrested him on fresh allegations that the former chairman of Nissan Motor Co. used millions of dollars from the company for his own purposes.
Fonte: dailymaverick - 🏆 3. / 84 Leggi di più »
BUSINESS MAVERICK ANALYSIS: The four Brexit scenarios for South African exportsMany South Africans consider Brexit to be exclusively a European issue. In fact, the consequences for SA, and other large trading partners of the UK, could be huge. Nice
Fonte: dailymaverick - 🏆 3. / 84 Leggi di più »
Business Maverick: Stocks Post Longest Rally of Year; Dollar Gains: Markets WrapU.S. stocks rose for a sixth consecutive day and the dollar strengthened as investors remained bullish about U.S.-China trade negotiations and key jobs data tomorrow in Washington. info well noted daily maverick
Fonte: dailymaverick - 🏆 3. / 84 Leggi di più »
Business Maverick: Rico: Cartoon Friday
Fonte: dailymaverick - 🏆 3. / 84 Leggi di più »
Business Maverick Analysis: Why poor housing prices are a blessing in disguiseIt’s a terrible irony. South African house prices, adjusted for inflation, are as flat as an ironing board and have been for around a decade. And that just may save us all the heartache at least some of the developed world faces as their residential markets come under pressure.
Fonte: dailymaverick - 🏆 3. / 84 Leggi di più »
Business Maverick: Debt, State Firms Are Risks to South Africa Rating, Moody’s SaysSouth Africa may struggle to hang on to its sole investment-grade credit rating if economic growth persists at weak levels and if government debt and risk from state-owned companies rises, Moody’s Investors Service said.
Fonte: dailymaverick - 🏆 3. / 84 Leggi di più »