Fed in no rush to taper but QE is losing force January 8, 2014 MOST of the Federal Reserve’s rate-setting board now believe that the positive effects of quantitative easing are diminishing as purchases continue, while insisting they were in no rush to speed up the new tapering programme. “A majority of participants judged that the marginal efficacy of (QE) purchases was likely declining as purchases continue,” according to [...]
New York Report: US rally fizzles on Fed minutes January 8, 2014 The S&P 500 finished nearly flat yesterday as equity indexes had a muted reaction to the minutes from the US Federal Reserve’s most recent meeting, while Micron’s strong results helped buoy the Nasdaq. Minutes of the Fed’s December 17-18 meeting, after which the US central bank announced its decision to begin trimming its monthly bond [...]
Don’t underestimate Turkey’s turmoil: Not all emerging markets will succeed January 8, 2014 TURKEY’S often-fickle political system may not make its current domestic turmoil seem particularly important. But the country’s troubles hold lessons for the likely success – or failure – of other emerging markets in 2014 and beyond. More and more, Turkish Prime Minister Recep Tayyip Erdogan looks like a man who has outlasted his usefulness. If [...]
US private sector jobs growth highest since November 2012 January 8, 2014 238,000 more people in the US were employed in December than November, according to data released by Automatic Data Processing (ADP). The impressive increase in jobs created in the private sector came in above expectations of 200,000 and is the highest in 13 months. It follows November's rise of 229,000 – which was revised [...]
What you need to know before the open – 08/01 January 8, 2014 European markets are set to open flat this morning, as US employment data and Fed Open Market Committee meeting minutes are due out later today. European opening may be reflective after rudderless rally yesterday – FTSE -2, DAX -14, CAC -4 — David Buik (@truemagic68) January 8, 2014 Strong US data yesterday gave [...]
Fed’s Rosengren gets on board with US plans to taper stimulus January 7, 2014 THE LONE US Federal Reserve official to dissent against the Fed’s decision last month to cut stimulus said yesterday he is nonetheless comfortable with the current approach of reducing bond-buying by $10bn (£6.08bn) increments at each policy meeting. In an interview, Boston Fed president Eric Rosengren warned against any “dramatic steps” to wind down the [...]
This analyst suggests there is no “new normal” after all January 7, 2014 The "new normal" is a buzzword that's been doing the rounds for quite a while, but might be a fiction, according to Deutsche Bank US chief economist Joseph LaVorgna. Today LaVorgna has released a note titled "Is the old normal the new "new normal"?" That implies that the idea of a shift to very different [...]
The Fed’s one dissenter has just backed QE reductions January 7, 2014 When the Federal Open Market Committee (FOMC) decided to begin scaling back asset purchases last month, only one voice stood in opposition. Eric Rosengren, Boston Fed president, opposed the $10bn (£6bn) reduction in quantitative easing known as tapering. At the time Fed chairman Ben Bernanke said that further reductions are set to take place throughout [...]
What the other papers say this morning – 7 January 2014 January 6, 2014 FINANCIAL TIMES Fall in capital flows threatens recovery The flow of money through the global financial system is stuck at the same level as a decade ago, raising fresh concerns about the strength of the economic recovery following six years of financial crisis. In mid-2007 cross-border capital inflows into the G20 group of economies were [...]
Senate backs Yellen at Fed January 6, 2014 JANET Yellen was last night approved as the new governor of the Federal Reserve by the US senate. Yellen has spoken of her desire to keep policy very loose in a bid to cut unemployment further, rather than worrying about price inflation. President Obama nominated her for the job in October and she will take [...]