America warns of global chaos if it defaults on debt October 3, 2013 THE WORLD faces an even worse recession than the ongoing financial crisis if the US congress fails to lift the country’s debt limit, top officials warned yesterday. The US Treasury said yesterday if the current impasse over government spending is not resolved within a fortnight then it will have a “catastrophic effect on not just [...]
Record issue of Euro junk bonds in September amid debt renewal October 3, 2013 EUROPEAN junk bond issuances hit a record high last month thanks to an increase in the number of companies looking to refinance debt. September saw €10.5bn of high yield bonds supplied to the market, driven by corporate refinancings, which are responsible for about 60 per cent of issuances so far this year. The third quarter [...]
Private sector US job data misses estimates – and markets have little else to go on October 2, 2013 While the US government is in shutdown, we're not likely to get labour market estimates from the public sector statisticians – and when they do come they may be rushed, and face revisions afterwards. So for now markets are making do with private sector data releases, and the ADP number just missed estimates. Expected to [...]
ECB keeps interest rate at 0.5 per cent October 2, 2013 The European Central Bank has announced its decision to hold the interest rate for the Eurozone at 0.5 per cent. All other rates remain unchanged. Capital Economics' Ben May comments on the ECB's decision: The ongoing improvement in the outlook for the euro-zone economy had ruled out an ECB interest rate cut today. Meanwhile, the [...]
Markets look towards private labour market estimates as government shutdown hampers releases October 2, 2013 With the US government still in shutdown (well, more of a slimdown, around 80 per cent of federal employees are still at work), we're probably not going to see nonfarm payroll (NFP) estimates this Friday. Markets are so hungry for jobs data because Federal Reserve decision making over when to begin scaling back asset purchases [...]
Both parties dig in heels and refuse compromise over US shutdown deal October 1, 2013 THERE was no deal in sight to end the shutdown of the federal government yesterday, with neither party budging from their uncompromising position on a debt ceiling deal. The White House and Senate Democrats, who make up the majority in the chamber, are still voicing opposition to anything but a clean continuing resolution. Such a [...]
Champions League: Arsenal lucky to have Ozil, says Wenger October 1, 2013 ARSENAL 2 vs NAPOLI 0 ARSENAL manager Arsene Wenger admitted they were lucky to clinch the deadline-day signing of Mesut Ozil, after the Germany playmaker scored one and set up another in a dazzling victory over Napoli last night. Ozil’s opener, his first since joining from Real Madrid, was swiftly followed by striker Olivier Giroud’s [...]
European markets remain calm in wake of US gridlock October 1, 2013 As the US approaches the pivotal date of October 17 when the debt ceiling needs to be passed, pressure is mounting on politicians to reach an agreement. Ishaq Siddiqi, market strategist at ETX capital writes: At the moment, financial markets are attempting to work out what sort of agreement this could be? We know a [...]
US jobs data may be released early as shutdown leaves Fed blind October 1, 2013 Market watchers have long warned that a shutdown of the US government – the first in 17 years – could mean that key unemployment figures are not released. Those are so critical because the Federal Reserve will base its decision to begin tapering – a reduction in the rate of expansion of the monetary base [...]
Memo ordering US government shutdown October 1, 2013 The US government has begun its first partial shutdown in 17 years. The Federal government failed to pass any federal spending bills for this fiscal year, which begins today. Ongoing wrangling between the Republican-led House and Democratic-led Senate has pushed approval ratings for Obama and Congress to new lows – 44 per cent and 10 [...]