What you need to know before the open – 10/12 December 10, 2013 Despite another record close for the S&P500 yesterday, Europe is set to open lower this morning. Strength on the US markets yesterday was pretty surprising, given the Fed's James Bullard's comments on the possibility of an imminent taper. And over in China, mixed data overnight – industrial production was slightly below expectations, whereas retail sales [...]
Lenders facing prop trading ban in America December 9, 2013 THE VOLCKER Rule is set to be approved today by regulators, who are voting on the controversial plans to ban banks from trading with their own money. New regulations will also restrict banks’ investment in hedge funds, as part of a wider set of measures to reduce the risks banks take. The rule is named [...]
Governor Carney plays the ghost of Xmas Present December 9, 2013 OVER in New York yesterday, Bank of England governor Mark Carney was not just extolling the recovery of the British economy – he also took the opportunity to peddle some of the UK’s classical literature to the yanks. Speaking at the 106-year old Economic Club of New York, Carney (clearly overwhelmed by the historical clout of [...]
New York Report: S&P 500 hits a record high as rally continues December 9, 2013 US STOCKS edged higher yesterday, with the S&P 500 closing at a record high last night, as traders awaited more clues from the Federal Reserve on whether the it would soon begin winding down its economic stimulus. Volume was light and a volatility index fell, signalling calm among traders. The Dow industrials traded within 43.11 [...]
Sterling’s strength could reverse before too long December 9, 2013 Despite signs of a strong UK recovery, the pound may suffer from Fed tapering and an improving Eurozone, says Liam Ward-Proud The pound’s enduring strength since the summer has caught many by surprise. Towards the end of June, with sterling-dollar just below $1.55, Morgan Stanley strategists expected it to fall to $1.45 in the third [...]
US job creation to boom as government slashes spending December 9, 2013 The US economy is on the path to strong job growth and higher wages, according to the National Association of Business Economics (NABE) quarterly survey. Unemployment will continue to fall with 200,000 jobs being added every month. As job creation increases workers will see more rapid wage growth, from 1.8 per cent in 2013 to [...]
UK division of Leica sees slower sales despite new camera launch December 8, 2013 THE UK division of Leica Cameras, the iconic camera brand used by celebrated photographer Henri Cartier-Bresson, reported a slowdown in sales last year despite rolling out a new flagship camera. Leica Camera, which is owned by German parent company Leica AG and distributes cameras in the UK, reported a 12 per cent dip in turnover [...]
Bank timidity over interest rate rises risks a destabilising build-up in debt December 8, 2013 THE BANK of England’s revised mandate may push the Monetary Policy Committee (MPC) to leave interest rates on hold for too long, complicating efforts to bring down inflation and household debt to more prudent levels. Key to the timing of interest rate rises will be unemployment, since the Bank is highly unlikely to hike rates [...]
Letters to the Editor – 09/12 – Toll roads, Labour flailing, Best of Twitter December 8, 2013 Toll roads [Re: Government scraps plans for toll pricing as taxpayers pick up tab, Tuesday] It is a shame that the government seems to have ignored the economic argument for toll roads. Pricing mechanisms have proven themselves in other areas of transport as an efficient means of allocating scarce resources, like road space. Moreover, technological [...]
Investors are about to get very frightened as US unemployment drops like a stone December 6, 2013 US unemployment has fallen way faster than expected in November. For once that good news is good news to Wall Street. The headline unemployment rate dropped from 7.3 per cent to seven per cent. Analysts had predicted a fall to 7.2 per cent. You might think that this is unambiguously good news for the US [...]