Blue-chips remain level after mixed day of economic news November 15, 2011 BRITAIN’S top shares were flat after a roller-coaster session yesterday, with weaker banks and integrated oils just countering a rally by miners as growth and debt crisis worries in the Eurozone offset positive signs on the US economy late in the day. At the close, the FTSE 100 index was down 1.60 points or 0.03 [...]
Wall Street edges up on retail stats November 15, 2011 US stocks rose yesterday, boosted by swift steps toward formation of a new Italian government and stronger-than-expected reports on the US economy. Stocks sensitive to economic growth led the rally, with technology and industrials the best performers. Apple rose more than 2.5 per cent, up for only the second day in the last eight. But [...]
Downing Street’s strategic mistakes on Europe put our national interest in danger November 15, 2011 IN THE midst of the European crisis, the government has made a strategic error by advocating fiscal union and economic governance for the Eurozone. The European summit proposals agreed on 26 October do not have any real legal basis and simply reflect the determination of Germany and France to go ahead, whatever the rules may [...]
Risky business: Fresh threats in new bank rules November 15, 2011 A NEARLY unanimous consensus (by governments, the International Monetary Fund, the European Commission and the European Banking Authority) is calling for a further increase in the regulatory capital of banks, in particular for those in the Eurozone. The rationale for this is that if banks have more capital they will more easily weather crises and [...]
The fantastical power of the printing press November 15, 2011 WHEN I was nine years old I learned that money is created by the central bank. This gave me a brilliant idea. Why not print up millions for everyone in the country and then we would all be rich. My father put me straight. He explained that money is not in itself wealth. Printing more [...]
RAPID RESPONSES November 15, 2011 Jaguar & jugaad I have to agree with yesterday’s Forum article on India’s innovation culture. Having spent three years with a large multinational pharmaceutical company developing businesses in India, it was plain to see that India was turning itself into an innovation powerhouse and it would be a force to be reckoned with. Look at [...]
Japan struggles to get a grip on its currency November 15, 2011 THE Japanese central bank, the Bank of Japan (BoJ), has been locked in a seemingly futile battle to weaken its currency, the yen. A strong yen is seen as damaging to Japanese exporters by reducing their competitiveness overseas and eroding the value of repatriated earnings. But despite its past failures, it is likely that the [...]
ECB NEEDS TO COMMIT TO SWISS PLAN November 15, 2011 DESPITE new technocratic governments taking the helm in Greece and Italy, financial markets remain on edge regarding the future of Europe’s monetary union. Serious fiscal reform is unlikely to quickly take hold and may face very stiff opposition from populations already suffering from serious economic hardship. Meanwhile, the European Financial Stability Facility (EFSF) bailout fund [...]
THE TIPSTER November 15, 2011 TRADERS are extremely cautious over the fate of the euro. Despite governmental changes in the Eurozone, sentiment hasn’t appeared to pick up. After Merkel’s comments that the Eurozone is in its worst state since WWII, we should still expect short-term bearishness over the euro and strength in relatively more safe haven currencies such as the [...]
FOREX ANALYST PICKS November 15, 2011 FOREX STRATEGIST JOHN KICKLIGHTER My pick: Short sterling-dollar; long dollar-yen; short euro-yen Expertise: Fundamental analysis with risk management Average time frame of trades: 1 day to 1 week The short setup for dollar-yen below ¥78 from last week worked well enough, but follow through will be troublesome. Now, I’m looking for an intervention reaction should [...]
