Sterling strength won’t last: Markets will soon notice UK economic weaknesses May 13, 2014 STERLING has had a good run against the dollar, but it can’t last much longer. The pound has risen to five-year highs on growing expectations of an early UK rate rise and more dovish comments from the Federal Reserve. But events on both sides of the Atlantic could upset the consensus. For a start, the [...]
Asian markets rise after strong finish on Wall Street May 13, 2014 Asian markets are on the rise as investors welcomed a weaker yen and a strong performance on Wall Street, with US equity indexes climbing to record highs. Japanese car maker Nissan enjoyed strong gains after full-year profits jumped 10 per cent beating analysts' estimates and forecast increasing dividends. Mitsubishi Chemical also rose sharply on reports [...]
CNBC Comment: Is fixed income dying or just sickly? May 12, 2014 SHOULD investment banks cut off the tail before it infects the body, or nurse it back to health? This is the conundrum confronting banks with fixed income divisions. Once bread and butter for bank profits, the industry is now left fighting over stale crumbs. Barclays’s restructure of its investment bank has sparked fresh debate about [...]
What you need to know before the US open May 12, 2014 With a quiet start to a week with plenty of data coming later on, it’s a modest open for US markets. Other markets have been gaining cautiously today, as fears over the Ukraine situation continue to trim investor confidence. Following, Sunday’s referendum, gold has risen above $1,290 an ounce, and the dollar’s lost ground. Corporate [...]
What you need to know before the open May 12, 2014 European markets are set to open lower this morning, following Asian counterparts, as investors await with caution for events in Ukraine to unfold. Yesterday, anti-Kiev rebels declared victory in a referendum on self-rule in eastern Ukraine. Western leaders are threatening further sanctions around energy and the financial services, if Moscow moves to disrupt the planned [...]
Geithner backs crisis bailouts May 11, 2014 A FORMER US treasury secretary has defended the country’s giant bank bailouts at the height of the financial crisis in a new book published this week. Tim Geithner has taken a beating over the past years for appearing too close to banks after he took the job in 2009. But in his book, Stress Test, [...]
Fed president says growth hazy May 11, 2014 Regional Federal Reserve president Dennis Lockhart, who will be one of the central bank’s voting policymakers next year, expects that interest rates will rise in the second half of 2015. However, Lockhart added: “It may not be clear for several months, or even quarters, whether the US economy is undeniably on a stronger and sustained [...]
Why Barclays thinks investors need to go for diamonds May 8, 2014 Barclays is feeling pretty positive about the possibilities diamonds are offering investors. With the tide turning when it comes to Chinese growth, a strong dollar and worries over the health of emerging market economies, diamond demand is resurging, it says. Demand growth for diamonds arrives relatively late in an economic cycle, post job creation [...]
What you need to know before the US open May 8, 2014 US markets are expected to open higher today following Vladimir Putin’s more conciliatory stance towards the Ukrainian election, and better than expected initial jobless claims numbers. The number of people signing on for unemployment benefit for the first time fell by 26,000 last week, to 319,000. Over here in Europe, both the Bank of England [...]
What you need to know before the open May 8, 2014 A higher open is expected for European markets, following yesterday’s bumpy trading. A more appeasing message from President Putin yesterday, urging Ukrainian separatists to postpone plans for a referendum, has helped buoy markets. On top of that, better than predicted trade data from China – although expectations were very low – has caused some optimism. [...]