Market Recap 1/30/2019

FOMC meeting

Overall tone around growth remain optimistic

Powell signals the fed is on pause until around summer

China US talk

1/30 -1/31, senior Chinese official are set to meeting their American counterparts in Washington

Tim Cook says tension between US and China were easing

China, many provinces are cutting their 2019 growth target

Base case: trade deficit dispute is described as largely resolved and China has suggested a proposal for >1 trillion over 6 years has already been made by Beijing

PADVSA & Oil

Trevino imposes sanction on stated-owned oil company of Venezuela

Saudi Airbus won’t increase output to compensate for any lose Venezuela production

LIBOR

On a monthly basis, cleared notional in sterling overnight index average (SONIA) swaps is now higher than that for sterling London inter-bank offered rate (LIBOR).

The smooth transaction from LIBOR will be one in which contacts that reference LIBOR are replaced or amended before fallback provisions are triggered. Market consensus suggests calculating a SONIA-LIBOR spread to reflect a fixed term credit premise.

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