Analyst picks for 11 December 2012 December 10, 2012 CURRENCY STRATEGIST CHRIS VECCHIO My pick: Long dollar-yen, and long gold Expertise: Fundamental and technical analysis Average time frame of trades: A few hours to a few days With the Fed expected to announce a extension to QE3 or a new QE4 (similar to QE2), the US dollar could be under pressure soon. I’ve moved [...]
Fed eyes new bank debt rules December 4, 2012 US financial regulators are considering proposals to force banks to hold more long-term debt in a bid to improve stability. Dan Tarullo, a board member of the Federal Reserve, said a plan for minimum long-term debt requirements does “not immediately suggest any unfavourable unintended consequences, thereby perhaps strengthening its appeal as a near-term policy priority”. [...]
Beige Book backs stimulus November 28, 2012 THE US could be in for further monetary stimulus, after the Federal Reserve’s Beige Book report on the economy, out yesterday, gave little sign of price pressures but revealed continued worries about growth. The report said manufacturers were worried about the impact of the so-called “fiscal cliff” of tax hikes and spending cuts due in [...]
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 [...]