The speculative attack on the Danish peg, Davos and Cate Long on US municipal finance
Today’s headline focuses on Switzerland and Denmark. Last week, the Swiss National Bank unexpectedly announced it would stop trying to maintain a 1.20-euro floor on the euro’s Swiss franc exchange rate. Since the Swiss franc was pegged to the euro, speculators who placed huge bets on the franc falling against the dollar as the euro fell lost big time. Switzerland isn’t the only country with a currency pegged to the euro. Officially, Denmark has set a band between 762.824 and 729.252 krone per 100 euro, a peg now being attacked by speculators. Edward Harrison weighs in.
Erin joins Edward via Davos, Switzerland to discuss the World Economic Forum’s Annual Meeting, reviewing the list of attendees, scheduled events, and what to expect at this year’s gathering.
After the break, Edward is joined by Cate Long, partner at Puerto Rico Clearinghouse and founder of Multiple Markets. Cate tells us how positive consumer confidence plays out in terms of tax revenue at the municipal level, and gives us her take on how oil-related tax revenue is going to affect oil-producing states in the US. She also gives us a detailed update on the saga in Puerto Rico and how Detroit is doing post-bankruptcy.
And in The Big Deal, Edward and RT correspondent Ameera David discuss satellite internet. Take a look!
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