Fed president wants faster taper February 5, 2014 The president of the Federal Reserve Bank of Philadelphia, Charles Plosser, suggested in a speech yesterday that US quantitative easing should be clipped at an even faster pace, and the entire programme could come to an end by the middle of the year, before unemployment reaches the Fed’s 6.5 per cent threshold. He added that [...]
City A.M. shadow MPC votes 7-2 against higher rates February 5, 2014 ALLISTER HEATH | CITY A.M. The case for a 0.5 percentage point hike in the Bank rate is clear. The unemployment level is plummeting and firms are reporting some of the most positive conditions on record. The dangers of emergency monetary policy are now increasingly obvious, especially in London’s property market JAMES SPROULE | INSTITUTE [...]
Chinese monetary superpower rivals the Fed in the emerging market storm February 5, 2014 ONE OF the joys of my job is watching fashionable but off-base theories crumple in the face of real world events. The current emerging market storm has seen the obvious destruction of not one, but two cocktail party staples: the rise of the Brics/Mints and the idea of the G-Zero world. The first thought to [...]
Letters to the Editor – 06/02 – Quango bonfire, Global growth, Best of Twitter February 5, 2014 Quango bonfire [Re: How charities lavish millions of taxpayer money on left-wing campaigns, yesterday] The government should consider revisiting its “bonfire of the quangos”, although they should see it through properly this time. Over 200 have been axed, with impressive savings upwards of £2bn quoted, but far too many of the roles have been rehashed, [...]
Advantage Britain in Fed Cup February 5, 2014 TENNIS: Great Britain took an unassailable 2-0 lead against Latvia in their Fed Cup Europe/Africa Zone Group match yesterday. British No3 Heather Watson beat 16-year-old Jelena Ostapenko 7-5, 6-1, before Australian-born Johanna Konta triumphed 6-3, 4-6, 7-5 against Diana Marcinkevica. Britain, captained by Judy Murray, play Romania on Friday, then Hungary on Saturday.
Abenomics fails to deliver for Japan’s mega banks February 5, 2014 Japanese banks are set for a rough ride this year as they struggle to maintain strong profits, according to Fitch Ratings. The ratings agency said recent gains seen in the wake of Abenomics can be attributed more to a surge in optimism rather than fundamental improvements. Core lending remains sluggish as a stronger yen combined [...]
Global growth has peaked for now – but no need to panic February 4, 2014 IT’S NOT time to panic about the global economy just yet. Yes, equity markets are in freefall left, right and centre but the situation is far from universally disastrous. Growth is slowing after a strong run but isn’t about to end. There’s little chance of broad-based global deflation. The Fed’s belated decision to reduce the [...]
US stocks pare losses as steady data calms bears February 4, 2014 US STOCKS bounced back yesterday, following Monday’s sell-off and the bigger slump that hit Asian markets, buoyed by better data on the health of American industry. The Institute for Supply Management (ISM) assessment of January factory conditions in New York came in slightly stronger than expected, and although factory orders fell 1.5 per cent from [...]
Could falling Japanese stocks see Abenomics end in tears? February 4, 2014 The Nikkei took the biggest hit of any advanced economy stock index yesterday, dropping over four per cent. The Japanese stock index is down by about 14 per cent from its December peak. Is Prime Minister Shinzo Abe’s radical easing policy slipping up? Despite fears of a new bear market, this isn’t even the biggest [...]
What you need to know before the US open – 04/02 February 4, 2014 US markets look poised to steady today, following yesterday’s shock manufacturing report. The numbers saw the S&P 500 experience its worst day since June yesterday, with both the dollar and global equities sliding. Global shares dropped to a near four-month low. But despite little in the way of data today to help investors plan a [...]