The dynamics of QE have set the Bank of England on an unintended journey January 7, 2013 SINCE the financial crisis, the Bank of England has made use of some highly controversial monetary policy measures to help the UK economy recover. The most recent was the chancellor’s decision to claw back £35bn of the interest payments the Bank of England made from its holdings of government bonds. This took several economists by [...]
US adds 155,000 jobs last month January 4, 2013 The US added 155,000 jobs in December, with the unemployment rate steady at 7.8 per cent, official figures showed today. Employment increased in the healthcare, food services, construction and manufacturing sectors. The number of unemployed people in the US was broadly flat over the month, at 12.2m. On average last year, 153,000 jobs were added [...]
FTSE 100 slips as miners lead index down January 4, 2013 The blue chip index was broadly flat in early deals, as it failed to replicate its landmark day of trading on Wednesday. The FTSE 100 edged down by around 0.15 per cent this morning. Miners led the way down as worries that the US Fed might halt its monetary easing programme and concerns over US [...]
US fiscal cliff joy fades after Fed split on 2013 QE January 3, 2013 BUOYANT US traders were brought back down to earth yesterday after Federal Reserve minutes showed waning support for asset purchases in 2013, ending the euphoria felt by markets following Wednesday’s fiscal cliff deal. Meeting notes from the Federal Reserve monetary policy committee showed several of the 12 man group wanted to stop the Fed’s relentless [...]
Wall St slides after minutes from the Fed January 3, 2013 US stocks dipped yesterday after signs the Federal Reserve has growing concern about its highly stimulative monetary policy, giving investors reason to pull back after a two-day rally. The minutes from the Fed’s December policy meeting, released yesterday, showed increasing reticence about adding to the central bank’s $2.9 trillion balance sheet, which it expanded sharply [...]
FedEx profits fail to deliver December 19, 2012 FedEx’s profit fell 11.9 per cent in the second quarter, as the package delivery company struggled to improve results at its air freight business, it announced last night. The US-listed firm reported earnings of $438m (£269m). Disruptions relating to superstorm Sandy and falling consumer demand for pricey express postal services dented the results, though the [...]
Looking ahead to the 2013 markets December 17, 2012 IF WE have to go through 2013 in a similar vein to 2012, with a record number of Eurogroup, Ecofin, Euro summit, and FinMin meetings, my patience will be severely tested. It’s about time we moved on from over-analysing upcoming banking unions or aid packages. We need to return to a sense of normality, and [...]
Analyst picks for 18 December 2012 December 17, 2012 CURRENCY STRATEGIST CHRIS VECCHIO My pick: Short Aussie-yen and euro-yen Expertise: Fundamental and technical analysis Average time frame of trades: A few hours to a few days I closed a long dollar-yen position at ¥84.15, booking a gain of 4.3 per cent. Given the results of the Japanese elections, I then flipped the position, going [...]
What the other papers say this Morning December 13, 2012 FINANCIAL TIMES Fed begins bank stress tests The US Federal Reserve is carrying out its first ever system-wide stress test of bank liquidity in a move that could force banks to change their funding sources. Known internally as “C-Lar” – the liquidity version of the Fed’s annual “comprehensive capital analysis and review” – the examination [...]
Two-timing ex banker jailed for illegal tips December 13, 2012 A ROGUE former investment banker who convinced his two girlfriends to trade on insider information he fed them was locked up for two years and eight months yesterday. Thomas Ammann, 39, leaked insider tips to both of his girlfriends Christina Weckwerth, 44, and Dr Jessica Mang, 30, about his client, Canon, and its planned takeover [...]