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 [...]
Fed taper not a grave threat to the Fragile Five January 6, 2014 But 2014 will see heightened political risk in emerging markets FOR MANY emerging market investors, 2013 will go down as a year to forget. The MSCI emerging market equity index fell from highs of over 1,055 at the beginning of the year to less than 884 in June, ending the year 5 per cent down [...]
CNBC Comment: Global markets in 2014: What to expect January 6, 2014 IT’S A new year, and I received the most important present just before Christmas. In 2014, I will never again have to ask whether the US Federal Reserve will start tapering its asset purchase programme. The relief of that single fact cannot be overestimated, and I would like to personally thank Ben Bernanke and the rest [...]
DailyFX: Analyst picks January 6, 2014 CURRENCY STRATEGIST CHRIS VECCHIO My pick: Looking to buy euro-Aussie dollar and euro-yen Expertise: Fundamental and technical analysis Average time frame of trades: A few hours to a few weeks In the absence of further central bank stimulus, a return of growth to Europe should bring a return of capital in 2014. Ahead of the [...]
Position your portfolio for a cautiously optimistic 2014 January 6, 2014 Large cap success, a stronger dollar, risky bonds, and volatility should be key themes DESPITE troubles in emerging economies, 2013 proved to be a strong year for developed economy equity markets. And while remaining cautious about the coming months, investors also have reason to be optimistic about 2014. With economic data improving, corporate earnings better-than-expected, [...]
Skip Aus Open or risk season, Robson warned January 6, 2014 BRITISH No1 Laura Robson has been urged to consider pulling out of next week’s Australian Open or risk spending most of the year on the sidelines. Robson withdrew from the Hobart International yesterday after suffering severe pain in her left wrist during her first match of the season, prompting fears that the 19-year-old could miss [...]