US growth falls off a cliff again January 30, 2013 THE US economy shrank unexpectedly in the final three months of 2012, official figures showed yesterday, taking markets and analysts by surprise. Ben Bernanke at the Federal Reserve responded by holding interest rates at record lows and continuing to print $85bn (£53.8bn) a month to buy government bonds and mortgage backed securities. Stocks dipped on [...]
FTSE loses pace after poor US economic data January 30, 2013 The FTSE 100 fell yesterday, weighed down by miners after disappointing US GDP data as investors considered whether the rally that has lifted the index to 4-1/2 year highs has further to run. The FTSE 100 closed down 16.08 points, or 0.3 per cent, at 6,323.11, having climbed some 20 per cent from its June [...]
Stocks dip on Fed decision to keep easing January 30, 2013 U S stocks edged lower yesterday after the Federal Reserve left in place its bond-buying stimulus plan, saying economic growth had stalled but indicating the pullback was likely temporary. Describing the US job market as continuing its modest pace of improvement, the Fed repeated a pledge to keep purchasing securities until employment improves substantially. The [...]
US corporate results round up January 29, 2013 Eli Lilly says generic competition to Zyprexa hurt fourth-quarter profit as sales slide 49pc Eli Lilly and Co said yesterday that fourth-quarter profit fell as competition from generic drugs, particularly for its once top-selling schizophrenia drug Zyprexa, drove revenue lower. The US drugmaker earned $827m (£525m), or 74 cents per share, down from $858m, or [...]
Fed is ahead in the battle of the central banks January 29, 2013 ALTHOUGH the US has shown signs of rebounding, a scratch beneath the surface reveals that there are still issues dragging on the world’s largest economy. By historical standards, the pace of its current recovery is feeble. Research from Bank of America Merrill Lynch points out that the average annual growth rate of this recovery is [...]
Fed data shows record balance January 24, 2013 THE size of the Federal Reserve’s balance sheet reached a record, Fed data released yesterday showed, due to the central bank’s purchases of Treasuries and mortgage-backed securities that are part of its unconventional policy aimed at supporting economic growth. The Federal Reserve’s balance sheet – which is a broad gauge of its lending to the [...]
What the other papers say this morning January 24, 2013 FINANCIAL TIMES Fears over ECB funding scheme Concern is mounting among senior bankers that the European Central Bank’s special longer-term funding scheme risks backfiring, stigmatising the region’s weaker banks a year after it was launched. From the end of January banks have the opportunity to start paying back the cheap three-year money they borrowed under [...]
Fed easing assumptions attacked January 21, 2013 The assumption that monetary easing can slash US unemployment is based on a false assumption that all unemployment is cyclical, ING researchers argued yesterday. The Federal Reserve is radically loosening monetary policy as it believes unemployment is due to the downturn – but actually much of it is structural, the ING note argues – meaning [...]
Free cash and entrepreneurial spirit defy Blue Monday gloom January 20, 2013 THE third Monday in January (yes, that’s today) is often touted as the most depressing day of the year, based on a highly unscientific formulae involving weather, debt, time since Christmas, and guilt at failing set of New Year’s resolutions. But this year The Capitalist has noticed a slew of press releases from firms – [...]
Shock collapse in Philly Fed poll contradicts upbeat jobless data January 17, 2013 FACTORY activity in the key mid-Atlantic region fell back into decline in January, US data revealed yesterday. But across the US as a whole, 37,000 fewer new unemployment insurance claims were made in the week ending 12 January, when adjusting for seasonal variations – giving a much more optimistic picture of the economy. However, the broader [...]