What you need to know before the open – 17/10 October 17, 2013 After a 17-day stalemate, last night's deal to raise the debt ceiling and re-open the government might mean that a political point has been made in the US, but it may also mean we see markets looking a little under the weather this morning. Global markets will follow the US lead today: Asian markets are [...]
This crisis has been averted but the debt clock is still ticking October 16, 2013 SO IT appears to be a case of crisis deferred: as I write, the US seems sure to avoid default, for the next few months anyway. A temporary deal has been cobbled together; the big losers, it appears, are the Republicans who didn’t get anything meaningful. Yet the mad charade of the past few days [...]
Fitch threatens US rating as debt talks enter final day October 15, 2013 WITH just a day left until the US Treasury reaches the debt ceiling, the country’s politicians remained gridlocked last night, lacking a crucial deal to prevent a financial default. Credit ratings agency Fitch placed the country’s current AAA rating on negative watch, saying that “prolonged negotiations” over the debt ceiling undermine “confidence in the role [...]
What the other papers say this morning – 16 October 2013 October 15, 2013 FINANCIAL TIMES US bankers attack London-China love US bankers and UK lawyers attacked the new light-touch regulatory regime proposed for Chinese banks in the City on Tuesday, accusing George Osborne of political interference in regulation. As the chancellor confirmed details of a plan for Chinese banks to operate via branches rather than full-blown subsidiaries, senior [...]
What you need to know before the open – 15/10 October 15, 2013 Economic confidence in the US is dwindling as we enter day 15 of shutdown, although markets don't seem too worried at present. Equity markets continue to display confidence that a US Senate agreement could be reached this week, but the shift to Congress, with its Republican majority, will throw up deeper disagreements. The lack of [...]
CNBC Comment: Stability isn’t saving emerging markets October 14, 2013 INVESTORS have remained remarkably sanguine, despite being just a couple of days from the 17 October date when the US Treasury says it will run out of money if the debt ceiling isn’t raised. Yes, volatility has spiked, and very short-dated credit has seen yields higher. But whatever last minute extension is crafted, everyone expects [...]
New York Report: Debt talks still ongoing as US results go out October 13, 2013 US STOCK investors, hoping to leave politics aside to focus on fundamentals, aren’t going to get their wish yet as talks over raising the debt ceiling and reopening the government broke down over the weekend. The S&P 500 generated two days of strong gains in advance of the weekend on hopes an agreement to raise [...]
What the other papers say this morning – 11 October 2013 October 10, 2013 FINANCIAL TIMES New York Fed sued over Goldman A former bank examiner filed a suit against the Federal Reserve Bank of New York, claiming she was fired after criticising Goldman Sachs for its policies on managing conflicts of interest. Carmen Segarra is suing the New York Fed and three of its officials in federal court [...]
Gold prices to continue losses to 2014 says Morgan Stanley October 10, 2013 Morgan Stanley has forecast a continues further fall in the price of gold into 2014 as the Federal Reserve begins the process of tapering its bond buying programme. Morgan Stanley analyst, Joel Crane, speaking in a video report said: We recommend staying away from gold at this point in the cycle. Our forecast profile heading [...]
What you need to know before the open – 10/10 October 10, 2013 US markets closed slightly higher yesterday, following Janet Yellen's nomination as Fed chairman and acceptance speech in which she pointed to a more relaxed monetary policy – diminishing the chance of a taper being imminent. In addition, the minutes from last month's FOMC showed that opinions were divided on a taper, and there was plenty [...]