Fed up markets down? It’s about funding not rates September 18, 2015 Global markets were sent into a tailspin yesterday after the Federal Reserve held fire on interest rates amid fresh concerns over the Chinese economy and emerging markets. But market mavens should be paying attention to funding, rather than interest rates. It’s frequently said and not always in jest, that the credit markets are smarter than the stock [...]
Federal Reserve puts US interest rate rise on hold: Global risks trigger Fed chair Janet Yellen’s dovebomb September 18, 2015 The Federal Reserve left interest rates unchanged last night, sending markets on a roller coaster ride as investors struggled to understand the economic factors behind the dovish decision. Trading was turbulent after the Fed announced its decision to hold rates, with the three major US indices first hitting session highs, and briefly turning negative [...]
How the world reacted to the Federal Reserve interest rate decision: Emerging markets soar and US stocks whip about on Fed’s decision not to hike rates September 17, 2015 Emerging markets took off after the Federal Reserve’s decision to hold interest rates steady at a historic low – but the dollar swooped on the news. Blaming a shaky global economy, the Fed’s Federal Open Market Committee voted to hold its fire on a US rate hike, leaving interest rates at the zero to a [...]
Market slips as Fed holds – New York Report September 17, 2015 THE S&P 500 and Dow industrials ended lower yesterday, giving up a one per cent rally in a choppy session, as investors struggled to interpret the Federal Reserve’s decision to hold off on raising interest rates. The Dow Jones industrial average fell 65.27 points, or 0.39 per cent, to 16,674.68, the S&P 500 lost 5.11 [...]
Federal Reserve interest rate decision: Fed leaves US interest rate unchanged September 17, 2015 The Federal Reserve decided to keep US interest rates unchanged today, confirming analysts’ suspicions that recent market turmoil would stay the bank's hand. The shaky global economy, recently dragged by turmoil in China after Black Monday, lay behind the Fed's decision to hold its fire and keep the interest rate at its zero to a [...]
Retail sales suggest UK economic growth to slow in the third quarter September 17, 2015 UK retail sales inched up in August – having dipped a month earlier – but a lack of strength is leading analysts to warn that UK growth is hitting a "soft patch" in the third quarter. Retail sales grew by just 0.2 per cent on a monthly basis, in line with expectations, according to the [...]
Fed rate hike: “I’ll eat The Economist if US interest rates rise,” wagers Radio DJ Ed Mitchell September 17, 2015 Share Radio broadcaster and former BBC business journo Ed Mitchell was big news last year when he successfully returned from the brink of an addiction to drink and gambling. Despite being a new man now, he has just made another wager – he’s promising to eat a copy of The Economist, page by page, live [...]
Four reasons why the Fed should not postpone a rate hike September 17, 2015 The probability of the US Federal Reserve ending seven years of near-zero interest rates September is stronger than is generally believed. While there is no perfect timing for the tightening monetary policy, several arguments confirm that the Fed is able to begin this month if it so desires. Here are the four we can see: The [...]
UK wages rise at the fastest pace in six years as employment unexpectedly falls September 17, 2015 The pound leapt against the dollar as official data showed UK wages rose at the fastest pace in six years, while employment unexpectedly fell. Annual average weekly earnings, excluding bonuses, increased by 2.9 per cent in the three months to July, the fastest growth since 2009. Including bonuses, average weekly earnings growth also rose by 2.9 [...]
Federal Reserve interest rates rise decision: Will she, won’t she? Janet Yellen’s hike dilemma – The City View September 16, 2015 It was seven years ago this week that the collapse of Lehman Brothers triggered a global banking crisis. And yet here we are, still speculating about when interest rates will start to return to anything resembling normal levels. Today, the US economy is steaming ahead. Granted, it may be having some trouble due to the [...]