>>70020 pb
L0074 USAFSOC C-32B departed NAS Oceana after a ground stop south and arrived at San Juan, PR
Not AF1 Joe in 82-8000 USAF 747 departed Chicago O'Hare Int'l Airport back to JBA
09-0017 USAF C-32A departed Peoria Int'l Airport after a ground stop and waiting for Not AF1 Joe in 82-8000
RCH839T USAF C-17 Globemaster departed JBA to Chicago O'Hare to pick up Not AF1 Joe's equipment
SNTRY25 USAF E-3C AWACS over Illinois from Tinker AFB, OKC
FOMC Minutes: "Inflation Risks tilted to upside", Begin reducing asset purchases "somewhat earlier"
In discussing the uncertainty and risks associated with the economic outlook, participants commented that the process of reopening the economy was unprecedented and likely to be uneven across sectors. Some participants judged that supply chain disruptions and labor shortages complicated the task of assessing progress toward the Committee's goals and that the speed at which these factors would dissipate was uncertain. Accordingly, participants judged that uncertainty around their economic projections was elevated. Although they generally saw the risks to the outlook for economic activity as broadly balanced, a substantial majority of participants judged that the risks to their inflation projections were tilted to the upside because of concerns that supply disruptions and labor shortages might linger for longer and might have larger or more persistent effects on prices and wages than they currently assumed. Several participants expressed concern that longer-term inflation expectations might rise to inappropriate levels if elevated inflation readings persisted. Several other participants cautioned that downside risks to inflation remained because temporary price pressures might unwind faster than currently anticipated and because the forces that held down inflation and inflation expectations during the previous economic expansion had not gone away or might reinforce the effect of the unwinding of temporary price pressures.
...
Participants discussed the Federal Reserve's asset purchases and progress toward the Committee's goals since last December when the Committee adopted its guidance for asset purchases. The Committee's standard of "substantial further progress" was generally seen as not having yet been met, though participants expected progress to continue. Various participants mentioned that they expected the conditions for beginning to reduce the pace of asset purchases to be met somewhat earlier than they had anticipated at previous meetings in light of incoming data. ...
Various participants offered their views on the Committee's agency MBS purchases. Several participants saw benefits to reducing the pace of these purchases more quickly or earlier than Treasury purchases in light of valuation pressures in housing markets. Several other participants, however, commented that reducing the pace of Treasury and MBS purchases commensurately was preferable because this approach would be well aligned with the Committee's previous communications or because purchases of Treasury securities and MBS both provide accommodation through their influence on broader financial conditions. In coming meetings, participants agreed to continue assessing the economy's progress toward the Committee's goals and to begin to discuss their plans for adjusting the path and composition of asset purchases. In addition, participants reiterated their intention to provide notice well in advance of an announcement to reduce the pace of purchases.
https://www.calculatedriskblog.com/2021/07/fomc-minutes-inflation-risks-tilted-to.html
Goldman wins banking license to help multinationals in Japan
Goldman Sachs on Wednesday received a license to operate banks in Japan, expanding the burgeoning business into a new market as its trading desk becomes less reliable as a cash cow.
Subsidiary Goldman Sachs Bank USA, which handles consumer and corporate banking, will offer services such as helping Japan-based multinationals with dollar funding. It is set to open a location in Tokyo in September. Goldman is putting transaction banking handling cash management, payments and the like for corporate customers at the core of its growth strategy. The business, which launched in the U.S. last year, has more than 250 clients and $35 billion in deposits, and expanded into the U.K. in June.
The company is a latecomer to the field. Major American and European commercial banks including JPMorgan Chase, Citigroup and HSBC have already moved into transaction banking a source of reliable profits, even with thinner margins than investment banking and snapped up prime clients. But "with no real legacy technology ... to defend, we are positioned to innovate unlike many others in the industry," CEO David Solomon said in a 2019 internal memo, when the company launched Apple Card. The same reasoning is believed to be behind Goldman's decision to enter transaction banking behind rivals. Goldman hired engineers earlier than many of its American peers, to build from scratch a new cloud-based platform for online transaction banking. Simplicity and ease of use are the main selling points for the platform, which can handle domestic and overseas payments in more than 120 currencies.
The diversification push has also included a foray into retail banking. Launched in 2016, Goldman's consumer bank, now known as Marcus, has drawn customers with accounts touting relatively high yields in a period of rock-bottom interest rates. It had $97 billion in deposits at the end of 2020 on par with midtier U.S. banks which has led to lower funding costs for Goldman. Goldman, which has no bank branches or ATMs, looks to use technology to compensate for its low brand recognition. Part of this strategy involves "banking as a service," or offering financial services for nonbank customers. A successful example of this model is the Apple Card, launched in 2019. Apple develops the user experience elements, such as integration with mobile devices, while Goldman handles the back end, including payments, account management and customer service. Goldman is also acquiring General Motors's credit card business in a deal announced in January.
The company is working to branch out from a structure that makes it more vulnerable than rivals to market swings. The trading division, which generated nearly half Goldman's revenue last year, was hamstrung by tighter financial regulations and low interest rates before volatility sparked by the coronavirus pandemic boosted returns. Since the 2008 financial crisis, stock markets have rewarded banks that bring in steady profits. Morgan Stanley, which has expanded its wealth management and asset management operations through acquisitions, has a price-earnings ratio of 12.9, thanks to expectations of a stable stream of commission income. Goldman, with its focus on in-house development, has been slower to pivot, which is reflected in a lower ratio of 8.1.
Goldman's trading desk logged its highest quarterly pretax profit since 2010 in the first quarter of this year. But its performance is likely to come down to earth in second-quarter earnings scheduled for release next week, drawing investors' attention back to its diversification plans.
https://asia.nikkei.com/Business/Finance/Goldman-wins-banking-license-to-help-multinationals-in-Japan
HULK22 USAF E-4B Nightwatch departed Wright-Patterson AFB just after Not AF1 Joe passed by the to ne in 82-8000
09-0017 USAF C-32a continues se from Peoria Int'l depart
Fed discussed design for possible standing repo facility, minutes show
Federal Reserve officials continued to discuss in June how they could potentially structure a permanent facility for supporting U.S. money markets, according to minutes from the central bank’s last policy meeting released on Wednesday. A “substantial majority” of Fed policymakers reiterated their support for such a program, which would allow eligible financial institutions to borrow cash on a short-term basis as needed, saying “the potential benefits of such a facility outweighed the potential costs,” the minutes from the June 15-16 meeting stated. Several participants said the facility must be positioned as a “backstop” for markets, while some said it was important not to charge a rate so high that the program would be stigmatized.
In one plan presented to Fed officials, the facility would charge a minimum of 0.25% to firms borrowing cash overnight, the top of the target range for the Fed’s overnight benchmark interest rate. Under that approach, the facility would be open to primary dealers and then expanded later to include banks that were interested. Several participants in the discussion said it could be appropriate to adjust the rate over time based on the economy or market conditions.
The Fed began intervening in money markets in the fall of 2019 after reserves in the banking system fell too low, leading to a spike in short-term borrowing costs. Money markets were rocked again in March 2020 when the coronavirus pandemic led to a dash for cash, requiring the Fed to increase its repo offerings. In April, Fed officials discussed how having the support available through a permanent facility could allow the central bank to automatically respond to market pressures.
Over the past several months, however, the Fed has been dealing with the opposite issue - an excess of cash in the banking system. Use of the Fed’s reverse repo facility, which gives firms a place to temporarily park cash with the central bank, reached a record of $992 billion on June 30.
https://www.reuters.com/article/usa-fed-standing-repo/fed-discussed-design-for-possible-standing-repo-facility-minutes-show-idUSL2N2OJ2AR
Today's operations Cap #1
$785.72B with 65 counterparties
moar metaphorical nao
Not AF1 Joe on descent for nothing else on the schedule.
Tough day for Joe.....
09-0017 USAF C-32A on final at same from Peoria Int'l
Haitian First Lady Arrives In South Florida, Rushed To Hospital After Being Shot Several Times During Husband’s Assassination
Haitian President Jovenel Moise was fatally shot by gunmen at his private home overnight Wednesday.
His wife, Martine Moïse, was shot multiple times in the attack and has been brought to a hospital in Miami. Officials said her vitals are stable, WPLG reported. “Early information suggests it was a group of people who spoke English and Spanish. They were armed with high-caliber weapons,” Interim Prime Minister Claude Joseph said, calling the crime a “barbaric act.”
“We are shocked and saddened to hear of the horrific assassination of President Jovenel Moïse and the attack on First Lady Martine Moïse of Haiti,” U.S. President Joe Biden said in a statement. “We condemn this heinous act, and I am sending my sincere wishes for First Lady Moïse’s recovery. The United States offers condolences to the people of Haiti, and we stand ready to assist as we continue to work for a safe and secure Haiti.”
https://breaking911.com/haitian-first-lady-arrives-in-south-florida-rushed-to-hospital-after-being-shot-several-times-during-husbands-assassination/
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