8 June 2018 FT — Articles to Read

8 June 2018

Question: According to MSN:Lifestyle, what are 11 signs someone is lying to you?

Turkish lira up 2% after central bank raises rates to keep inflation in check – Pg. 1

  • The lira rallied sharply after the central bank raised its benchmark interest rate by 125bps to 17.75%. The currency gained 2% against the dollar after the increase
  • Investors have been clamouring for higher rates to help curb annual consumer inflation of 12.15% and to stem the currency’s slide
  • The lira went into freefall last month as investors worried about inflationary government spending pledges ahead of the pools…
  • The central bank raised its late liquidity rate by 300bp after an emergency meeting on May 23, a move that investors warned had come too late

Power – Pg. 7

  • In Laos, in Brazil, in central Africa and most of all in China, ultra high-voltage cable technology that allows power to be commercially transported over vast distances with lower costs and increased load in justifying the construction of massive power projects
  • UHV allowed china to binge on dam building in its mountainous hinterland, then transport the power thousands of killometres to its wealthy, industrial east coast
  • It is no coincidence that this would resolve the problem of “trapped” power resulting from some of China’s mega construction projects in countries like Laos that lack a big enough domestic market
  • Some western observers see a geopolitical strategy on part with China’s Belt and Road Initiative, a grand design that seeks to boost Chinese-led infrastructure investment in more than 80 countries
  • The first stage, set to run until 2020, involves investment in domestic grid assets within other countries. The second phase would see the kitting together of some of those grids and that generation capacity
  • The ambition is huge, envisaging linking up more than 100 countries. But china has considerable organizational, financial and technological firepower
  • The state-owned power companies that are hitting the acquisition trail overseas rank as global heavyweights. State Grid is ranked as the world’s second-largest company after Walmart in the 2017 Fortune 500 list

Watch the Fed’s balance sheet, not interest rates – Pg. 9

  • …Fed’s balance sheet unwinding is quietly contributing to the current turmoil in emerging markets
  • …worries that President Donald Trump’s subsequent tax cuts have caused the US deficit to widen unexpectedly, sparking higher-than-projected issuance of US debt. Indeed, some $2.34tn of Treasuries will be sold in the next two years
  • Global investors will need dollars to buy those bonds. However, the rub is that the Fed’s unwinding is sucking dollars out of the system, currently at a pace of $20bn a month, which is slated to rise to $50bn next or (or a cumulative $1tn of liquidity by December 2019).  That creates a dollar liquidity squeeze…

Answer: (1) They change their head position quickly; (2) Their breathing changes; (3) They stand very still; (4) They repeat words or phrases; (5) They provide too much information; (6) They touch or cover their mouth; (7) They instinctively cover vulnerable body parts; (8) They shuffle their feet; (9) It becomes difficult for them to speak; (10) They stare at you without blinking much; (11) They tend to point a lot