Before the open – 17/07 July 17, 2013 Chinese shares fell last night for the first time in three days as real estate developers like China Vanke and Poly Real Estate Group plummeted over concerns the government will extend property curbs. News that foreign direct investment in China rose by 20 per cent in June – exceeding analyst expectations of a 0.7 per [...]
Gilts hit by new rigging scandal July 16, 2013 A NEW rigging scandal reared its head in the City yesterday, after it was revealed that an alleged attempt by traders to fix pricing in government bond markets has been under investigation since 2011. The Bank of England’s director of markets Paul Fisher told a panel of MPs that the central bank had passed details [...]
JP Morgan joins Barclays and Goldman in slashing US GDP forecast July 16, 2013 JP Morgan has cut its forecast for US annual output in the second quarter of the year to one per cent from two per cent, citing the unexpected 0.5 per cent fall in wholesale inventories in May. However a reduction in the stock of unsold goods held by wholesalers in the second quarter “should imply [...]
Forward guidance in the UK is likely to fail as the Fed taper approaches | City A.M. July 15, 2013 BANK of England governor Mark Carney’s colours are firmly attached to the forward guidance mast. Following broad hints on 4 July, next month the Bank is expected to formally adopt the practice of signalling the future path of monetary policy. Forward guidance, however, is likely to fail. In a speech entitled Monetary Policy After The [...]
Mark Carney should learn from the failure of the Soviet shoe industry July 4, 2013 GROWING up in the West in the 1980s, new Bank of England governor Mark Carney was almost certainly inundated with stories about how the Soviet Union was not only an odious regime, but how even the possibly well-intentioned aspects of Soviet central planning inevitably resulted in sub-optimal economic outcomes. A classic example was shoes. Absent [...]
Why shale gas could be the saviour of Britain’s environmental targets May 31, 2013 THE debate around shale gas has been dominated by the economic benefits of production and the perceived risks of hydraulic fracturing. But we shouldn’t lose sight of the wider environmental picture. Developing shale gas in this country can benefit the natural world in several ways. First, it can reduce carbon emissions by replacing gas imports. [...]
Cheap money is fuelling the stock market’s dramatic bounce May 10, 2013 FOR the first time ever, the Dow Jones has closed above 15,000, in a major boost for investors everywhere. Remarkably, the index was at 14,000 just 66 days ago and is now up by 129 per cent since the 2009 trough, in a striking demonstration of the speed and scale of the bounce-back. With the [...]
Bernanke vow on stimulus cheers Wall St February 27, 2013 NEW YORK REPORT US stocks rallied for a second straight day yesterday as Federal Reserve chairman Ben Bernanke reaffirmed his strong support for the Fed’s stimulus efforts, while the euro climbed after solid demand at an auction of Italian government debt. Data on US housing and durable goods added to bullish sentiment in stocks, with [...]
Bernanke has considered negative interest rates February 27, 2013 During questioning at the House Financial Services Committee today, Democrat representative Gregory Meeks asked Fed chairman Ben Bernanke if he had considered zero or negative interest rates. Bernanke said that nominal negative interest rates as a policy was on the table and is an idea that is "discussed periodically" but that the stimulatory effects of [...]
Bernanke soothes US markets February 27, 2013 In the second day of testimonies, Fed chairman Bernanke's remarks are considered less important. However, they do appear to have had some impact on markets as the VIX (a measure of volatility in US markets) has moved downwards during this session before the House Committee. (Source: Yahoo! Finance) Former candidate for the Republican Presidential nomination, [...]