India refuses to slash rates June 18, 2012 THE RESERVE Bank of India has flouted calls to cut interest rates or to reduce banks’ cash reserve requirements, opting yesterday not to provide more monetary stimulus for the country. India’s central bank chose to keep the repo rate at eight per cent and the cash reserve ratio at 4.75 per cent, in order to [...]
Home builders’ morale in the US stretches to five-year high June 18, 2012 THE OUTLOOK for America’s housing market received a boost yesterday as confidence among US builders climbed to a fresh five-year high. A widely-regarded survey conducted by the National Association of Home Builders (NAHB) and Wells Fargo edged up to an index score of 29 for June. May’s score was revised downwards, but still showed an [...]
CITY MOVES | WHO’S SWITCHING JOBS June 18, 2012 Duncan Lawrie Jane Parry has been appointed to the UK board of Duncan Lawrie Private Bank. She joined the business a year ago and is now director, head of marketing and new business development. Parry started her banking career at Barclays, where she became marketing director of Premier banking in 2006. She has also held [...]
BEST of the BROKERS June 18, 2012 EDF Exane BNP Paribas has raised its rating on the energy group from “neutral” to “outperform” with a higher target price of €22. The broker thinks that now French elections are over, the new government will be careful not to worsen EDF’s financial position, ensuring a stable dividend and less risk of a sudden regulatory [...]
UK market’s euphoria over Greek vote is short-lived as crisis lingers June 18, 2012 UK equities closed slightly higher yesterday, slipping off one-month highs as initial euphoria after Greek elections reduced the chances of an imminent euro exit quickly gave way to the realisation that the region’s crisis is still far from resolved. Greek conservatives secured a narrow victory over the radical left at the weekend, increasing the likelihood [...]
US tech stock rally stymied by debt fears June 18, 2012 THE Nasdaq advanced yesterday, propelled by a rally in Apple and other big-cap tech stocks, but fears Europe’s debt crisis is in danger of worsening limited broader gains. Positive analyst comments lifted both eBay, up 4.5 per cent to $42.49, and Groupon, up 10.8 per cent at $11.15. Apple accounted for about half the Nasdaq’s [...]
Reflections on the causes of crises from one of America’s top bankers June 18, 2012 PUBLIC policy decisions are being made based on a myth. The misunderstanding driving this myth is that deregulation of the financial industry in the US, combined with greed in financial markets, caused the financial crisis and the continuing recession. And the root of this economic misconception is philosophical. In fact, the crisis and recession are [...]
Selling off unproductive assets is liberating music to a capitalist’s ears June 18, 2012 AFTER close to six years of marriage, my wife and I have finally merged our CD collections. As we don’t own a CD player, we realised that we didn’t need two copies of many albums we both own. Plus, she assured me that, if we get divorced, I would get to keep them anyway. I [...]
Greece’s election will only forestall eventual tragedy June 18, 2012 MANY people are asking what the Greek election result represents: a turning point? The end to questions over Greek membership of the euro? A light at the end of the tunnel? Unfortunately, none of the above. The result of the Greek election, although broadly viewed as the best possible outcome, does not fit any of [...]
Will Socialist victory in the French legislative elections lead to effective economic reform? June 18, 2012 YES Emma Reynolds On Sunday, French voters gave Francois Hollande an outright majority in the national assembly. The French President has already changed the dynamic in Europe, away from an exclusive focus on austerity, towards a commitment to create jobs and growth. Hollande’s success was based, in part, on the fact that he offered a [...]
