Behind the curve: Beware of Fed-induced asset bubbles May 5, 2014 Yellen risks making the same mistake as Greenspan in 2004 FEARS that the US recovery may falter were reawakened last week, with the advanced estimate of first quarter GDP coming in at an annualised 0.1 per cent, down from 2.6 per cent in the final quarter of 2013 (see chart). The dollar fell by 0.4 [...]
Tennis world mourns as former British No1 Baltacha dies, aged 30, from liver cancer May 5, 2014 “A GAPING hole has been left in tennis”, the Lawn Tennis Association said yesterday, after former British No1 Elena Baltacha died, aged 30. Baltacha battled the liver condition primary sclerosing cholangitis– an inflammation and scarring of the bile ducts – since the age of 19 and was diagnosed with liver cancer in January, two months [...]
Recuperating Woods resigned to needing Ryder Cup captain’s pick May 5, 2014 WORLD No1 Tiger Woods admits he is no closer to knowing when he will return from back surgery and that he is likely to need a captain’s pick to play in September’s Ryder Cup. Woods has not played since March, when he accepted that he needed an operation on a pinched nerve, and having missed [...]
Mixed morning for Asian markets ahead of US jobs report May 2, 2014 Asian markets are a mixed bad this morning as investors await the release of US payrolls later in the session. Economists estimate the US will report the biggest increase in non-farm payrolls since November last year, reports Bloomberg. The survey of 94 economists forecasts that 218,000 workers were added to payrolls in April. US economic [...]
Yellen stresses lighter rules for small US banks May 1, 2014 FEDERAL Reserve chair Janet Yellen said yesterday that the US organisation would try to “tailor” its regulatory approach to smaller banks, adding that work on larger banks is still “not finished”. Speaking to a summit of American community banks, Yellen stressed that the Fed was trying not to place “undue burdens” on the country’s many small [...]
What you need to know before the US open May 1, 2014 A flat open’s expected for US stocks today, as market digest the mixed variety of economic data and earnings reports coming in. Initial jobless claims were higher than expected for last week. 344,000 people signed up for unemployment benefit in the US – analysts expected 319,000, following 330,000 the week before. Personal spending rose 0.7 [...]
What you need to know before the open May 1, 2014 A flat open is expected this morning after a further taper from the Fed yesterday. Investors didn’t seem to focus too much on the weather-induced shock drop in first quarter growth in the US – to just 0.1 per cent, looking instead at the more confident Fed statement, strong ADP employment report and Chicago manufacturing [...]
Japanese shares climb as Fed continues to taper May 1, 2014 Japanese shares have risen after a solid performance on Wall Street and the Federal Reserve delivered a favourable view of the US economy, despite a major slowdown in the first three months of the year. US GDP growth reached just 0.1 per cent on an annualised basis. Economists had forecast a rise of a little [...]
Fed ignores US growth freeze and tapers on April 30, 2014 THE FEDERAL Reserve will keep on winding down its quantitative easing (QE) programme in May, as it turns a blind eye to severe winter weather’s dramatic impact on GDP figures released yesterday. The major slowdown in the US economy in the first three months of the year was much worse than expected, with GDP growth [...]
New York Report: Fed lifts Dow to new record April 30, 2014 US STOCKS rose and the Dow ended at a record high yesterday after the Federal Reserve gave an upbeat view of the economy’s prospects as it announced another cut to its bond-buying programme. Investors brushed aside data showing weak first-quarter economic growth, which was tied to the severe winter that hampered exports and hit investment [...]