June - 2018

Integrale Advisors by Keith Knutsson

INTEGRALE ADVISORS

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Federal Reserve’s IOER Strategy Set to Fail

Federal Reserve’s IOER Strategy Set to Fail

There may already be problems coming up with the Fed’s new strategy to manage the policy rate. By raising the IOER rate, the interest paid on excess reserves, by 20 basis points last week, the Fed assumed that it could put some downward pressure on the effective funds rate pushing toward the middle of the policy target range. This idea worked for a few days, but recently started showing trends of a rising effective funds rate. Analysts say, “Well it was nice while it lasted.

Saudi Arabia to Take Oil Consumers Side as OPEC Talks Continue

Saudi Arabia to Take Oil Consumers Side as OPEC Talks Continue

Saudi Arabia urged OPEC to help consumers by boosting oil supply as opposition from arch-rival Iran showed signs of wavering. The oil markets have been on spotlight due to the intensive negotiations between ministers in Vienna. Iran and Venezuela as they have shown disapproval towards Arabia and Russia’s desire to roll back production cuts. On the other hand, United States President, Donald Trump has lobbed the occasional rhetorical bomb at the cartel on behalf of consumers.

New Trends: The transitions of executives and the failures.

New Trends: The transitions of executives and the failures.

Recent Studies on leaders who demonstrated success and showed intelligence, initiative, and results in their previous roles reveals that within two years of executive transitions, between one-in-four to one-half of them are classified as failures. Cited as the main challenges are organizational politics. Many transitioning executives lament having not changed the culture at a quicker pace to combat these effects, and internal vs external transitions have little effect on any

Energy Storage in the new economy.

Energy Storage in the new economy.

Investors should keep an eye on Energy-storage companies. Despite declines in storage-system costs, the future could look different than previously expected by analysts. Yet, it is not all negative and some might view the outlook as encouraging. Currently there are some commercial uses for energy storage with economic benefits. In the future utilities, industrial customers, and households might benefit from energy storage. This is due to lower system costs, and also the decre

Global Market Effect on US-Korea Summit

Global Market Effect on US-Korea Summit

The markets and economies have been expecting a significant impact from the highly anticipated meeting of the President of the United States, Donald Trump and the leader of North Korea Kim Jong-un . These are potential results in the global economy and markets from the summit: North Korea: If both countries continue to successfully take steps towards denuclearization, North Korea could open up for new business ideas and investment opportunities. Currencies: The currencies pe

Is China’s Property Market a Bubble or Balloon?

Is China’s Property Market a Bubble or Balloon?

The markets have proven to be quite resilient despite long-running international concerns about China’s property bubble. The Chinese government has instituted various austerity measures to cool down the market, but buoyant demand for property has helped avoid any serious downturn. Various factors continue to support the Chinese property sector. Some of the factors include the increasing urbanization rate, abundant liquidity and the lack of investment alternatives. Although we

Side Effect of Rising Oil Drilling

Side Effect of Rising Oil Drilling

Higher oil prices are hurting companies that frack for natural gas while American shale drillers benefit at the same time. As companies unearth gas as a byproduct, they respond to rising oil prices by drilling more of it. This has weighted on already low gas prices thus adding more pressure to shale frackers in regions that primarily product gas. The average share price for the five top companies focused on the oil-rich Permian Basin in Texas and New Mexico are up more than 1

Smart-city technologies effect on crime and emergencies.

Smart-city technologies effect on crime and emergencies.

The effect of smart-city applications could affect various dimensions of life and thereby attract investors from various industries. While research suggests a wide range of outcomes, this is due to mostly varying application performance from city to city. Factors such as existing infrastructure systems might limit the potential impact of a technology. One of the expected uses focuses on crime, where agencies, for example, could use advanced data to deploy city resources and p

Easing Volcker Rule Restrictions for Big Banks

Easing Volcker Rule Restrictions for Big Banks

Future changes in the Volcker Rule restrictions on big banks’ trading have been backed by the Fed. These changes will loosen compliance requirements for all banks and provide a sense of relief for firms with small trading desks. The Fed will be easing the rule designed to curb risky trading in the wake of the financial crisis. The new plan will place fewer audits of individual securities and derivatives transactions for bulge bracket banks like J.P. Morgan and Goldman Sachs.

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