Meet Mark Carney: the Canadian flown in to save the UK economy November 26, 2012 IN APPOINTING Mark Carney the new governor of the Bank of England, the government has found an ex-Goldman Sachs director comfortable with garnering the views of the City – yet unafraid of standing his ground at times of conflict. The Canadian famously clashed with JP Morgan chief Jamie Dimon after a fierce disagreement over the [...]
Bernanke says fiscal cliff could see US topple back into depths of recession November 20, 2012 FALLING over the fiscal cliff could shock the US back into recession, Federal Reserve chairman Ben Bernanke warned in a speech yesterday evening. The fiscal adjustment, though necessary in the long run, would be too much for the weak recovery to absorb in one dose, Bernanke told an audience at the New York Economic Club. [...]
Fed’s Lacker pours cold water on monetary policy thresholds plan November 20, 2012 A TOP Federal Reserve official yesterday challenged an idea that is gaining traction at the US central bank, arguing that adopting so-called thresholds to guide policy would be a risky move that fails to take account of broader economic conditions. Richmond Fed president Jeffrey Lacker also floated the idea that legislation might be necessary to [...]
Bernanke and HP woes halt rally in stocks November 20, 2012 WALL Street halted its two-day rally yesterday, after Federal Reserve Chairman Ben Bernanke said the central bank lacks tools to cushion the US economy from the impact of the “fiscal cliff.” The day’s biggest disappointment was Hewlett-Packard shares, which sank to a 10-year low after the computer and printer maker swung to a fourth-quarter loss [...]
Japan’s election is likely to bring weakness in yen November 20, 2012 WHEN a stagnant economy meets a turbulent political environment, expect volatility. Traders spying an opportunity might want to cast their eyes to the Land of the Rising Sun, Japan. Over the last two decades, yen bears have been brutally battered as the currency has soared. Since 2007, dollar-yen has fallen by over 60 per cent. [...]
Judge throws out AIG lawsuit November 19, 2012 A LAWSUIT by AIG’s former chief executive Hank Greenberg alleging the Federal Reserve Bank of New York broke the law during the 2008 government bailout of the failing insurance company was yesterday dismissed. Starr International, once a large shareholder in AIG, argued the US acted unconstitutionally when it took 80 per cent of AIG’s equity. [...]
Why forgoing veal is now the real unethical choice November 19, 2012 The widespread view that eating veal is unethical is well-founded and well-meaning but out of date. You can, though, see where it comes from. Even as a chef and lifelong meat eater who generally tries not to feel too sentimental about using animals for food (as long as they have had good lives, been well-treated [...]
What the other papers say this morning November 15, 2012 FINANCIAL TIMES France Telecom open to EE listing France Telecom has opened the door for a flotation next year of EE, the UK’s largest mobile phone group by customer numbers that it owns with Deutsche Telekom. Gervais Pellissier, deputy chief of France Telecom, said that there “could be some space at the end of next [...]
US Fed minutes hint at further stimulus in 2013 November 14, 2012 THE FEDERAL Reserve may replace its so called Operation Twist with further conventional quantitative easing at the start of next year, its latest minutes suggested last night. Operation Twist has involved the Fed selling its short-term securities and using the proceeds to buy longer-term debt, in a bid to stimulate growth by weighing down even [...]
Congress may kick the fiscal can off its cliff November 12, 2012 AS WE rumble towards 31 December, US policymakers seem to be doing little of substance to address America’s looming fiscal cliff. And unless making speeches about the problem is going to make it go away, it is highly likely that we will see the kind of market uncertainty that we last witnessed in the summer [...]