Canada is first G7 state to hike rates June 1, 2010 THE Bank of Canada has become the first G7 central bank to hike interest rates at its monthly meeting. It hiked the cost of borrowing by 25 basis points to 0.5 per cent at its monthly meeting yesterday. But analysts said that the tone of the accompanying statement suggested this could be a one-off hike. [...]
Australia’s rate stays on hold June 1, 2010 AUSTRALIA’S central bank yesterday chose to keep interest rates on hold at 4.5 per cent and indicated that rates could remain steady over the next few months. The Reserve Bank of Australia (RBA) pointed to concerns about sovereign creditworthiness in several European countries. Its governor, Glenn Stevens, said that monetary policy was appropriate for the [...]
Oil falls below $73 per barrel June 1, 2010 OIL fell nearly two per cent to below $73 per barrel in choppy trade yesterday as the euro slid and Chinese and European data raised concerns about the global economy. The euro fell to a four-year low against the dollar on signs the Eurozone’s debt crisis is spreading to its banking system. A stronger dollar [...]
Lloyds gives Crystal Palace crucial lifeline June 1, 2010 THE survival of championship football club Crystal Palace appeared more likely yesterday after a last- minute deal saved it from the threat of liquidation. A life-saving agreement to sell the club’s stadium to a consortium bidding to own both that and the club itself was clinched mid-afternoon. The deal, which seemed like it might be [...]
Diversify your exposure June 1, 2010 NAVIGATING market volatility is always tough for any fund manager seeking to generate alpha and the ongoing sovereign debt and banking crisis in Europe has been a definite test of managers’ mettle. Recent data shows that worried investors have been redeeming assets held in funds. Outflows from European equity funds in the week ending 19 [...]
Bond markets could be about to change gear June 1, 2010 SOVEREIGN risk has risen as the debt problems facing Greece have come out into the open. And volatility in the bond markets is likely to continue after Fitch, the ratings agency, downgraded Spain late last week, reigniting concerns about credit risks. All of this has caused a massive divergence in bond yields and countries perceived [...]
NET INCOME – AND GROSS DEBT HABITS June 1, 2010 DICK TURPIN MANAGING DIRECTOR, ARTEMIS DEBT is the issue. The sub-prime parcel went round and round. But governments simply nationalised that $2 trillion when the music of Lehman Brothers and others stopped in September 2008. At $9 trillion, the combined public and private debt of the troubled European countries is another matter altogether, demeaning markets [...]
FUND MANAGEMENT NEWS June 1, 2010 GUINNESS FAMILY OFFICE’S NEW FUND Iveagh Private Investment House – home of the Guinness family’s office – along with 47 Degrees North Capital Management have launched the new Iveagh Newcits Fund at the start of June. This is a fund of Ucits hedge funds that is within a Ucits structure, which offers investors – both [...]
The chances of a strong pound are still bleak June 1, 2010 SO WHAT now for the pound? Not even a Conservative-led coalition and a credible plan to cut public spending has been enough to lift the UK currency out of its malaise – it has fallen 5 per cent against the dollar in the past month and has been unable to break above the €1.18 mark [...]
The dollar is a tough act to follow June 1, 2010 WITH speculation growing that the dollar could be forming a short-term top, Deutsche Bank has released research suggesting “an increasing likelihood of dollar correction”. The bank suggests that the dollar’s rally to over two standard deviations above its 200-day moving average is a strong indicator that a dip could be imminent. As the bank reports, [...]
