New York Report: Dow up but Nasdaq falters July 16, 2014 US STOCKS closed broadly lower yesterday after the Federal Reserve, in an unusual statement, singled out the valuation of social media and biotech shares as “substantially stretched”. The Dow Jones Industrial Average rose 5.62 points, or 0.03 per cent, to 17,060.68, the S&P 500 lost 3.82 points, or 0.19 per cent, to 1,973.28, while the [...]
Federal Reserve sees social media and biotech valuations as “substantially stretched” July 15, 2014 The Federal Reserve has joined the voices calling out biotech and social media stocks as over-priced. In its Monetary Policy Report, the Fed says "valuation metrics in some sectors do appear substantially stretched," singling out smaller firms in both social media and biotechnology. So what valuation metrics might the Fed be using? The most popular [...]
Fed’s Janet Yellen: US recovery is incomplete and uncertainty remains July 15, 2014 The US recovery is far from complete. That's the message from Federal Reserve chair Janet Yellen, who in written testimony has said that "too many Americans remain unemployed" and inflation remains below the central bank's objective. Yellen has also highlighted "considerable uncertainty" surrounding the Fed's projections for economic growth. Central bank watchers will be trying [...]
Top economists aren’t convinced by Republican proposal for Federal Reserve monetary policy rule July 14, 2014 Economists aren't impressed by the latest bright idea out of Washington. A Republican proposal to have the Federal Reserve bound by a formal rule, that would mandate a relationship between the Federal funds rate and macroeconomic measures, is failing to win many fans among academic economists. Those behind the legislation are fans of economists like [...]
World Cup: Super Mario puts Germany top of world July 13, 2014 GERMANY 1 ARGENTINA 0 AET, 0-0 after 90 minutes SUBSTITUTE Mario Gotze climbed off the bench to score a breathtaking extra-time winner as Germany beat Argentina to win their fourth World Cup last night at the Maracana in Rio de Janeiro. Gotze settled a gripping final in the 113th minute with a supremely composed chest-and-volley [...]
Fed to finish $10bn monthly QE in October July 9, 2014 THE FEDERAL Reserve revealed yesterday that its quantitative easing (QE) will finally finish in October, putting a date on the end to tapering for the first time. The end date was made official by the Federal Open Market Committee (FOMC) yesterday. The timeline means the last $15bn (£8.76bn) in QE asset purchases remaining will be [...]
New York Report: US stocks rise on taper news July 9, 2014 US stocks finished higher yesterday, rebounding from a sharp two-day selloff, after minutes from the last Federal Reserve meeting showed policymakers have started to detail how the central bank will end its easy monetary policy. The Fed indicated it will end its bond purchases in October and appeared near agreement on a plan to manage [...]
Fed minutes: QE stimulus to end in October July 9, 2014 The US Federal Reserve plans to end its program of quantitative easing in October according to minutes released from meetings in June. US markets dipped briefly on the news but quickly moved higher. The end of the bond buying program which began in September 2012 has already slowed by $10bn each month and the US [...]
The volatility debate: Be wary of betting on a swift reversal July 7, 2014 Central bank policy has distorted many asset markets. Financial markets have been remarkably tranquil of late. Traders accustomed to the ructions of recent years are now starved of volatility, with the US equity “fear index” (the Vix) continually falling towards pre-crisis lows (see graph, bottom left). As Gemma Godfrey of Brooks Macdonald points [...]
Recovery drives resurgence in finance hiring July 6, 2014 UPBEAT companies hired more staff in June than at any time in the past two years, the Association of Professional Staffing Companies (Apsco) said today. The number of permanent placements made by the recruiters jumped 33 per cent compared with the same period of last year. Finance and accounting hiring jumped 39 per cent, and [...]