King calls fellow central bank chiefs for summit over Libor July 18, 2012 BANK of England governor Sir Mervyn King has written to other central bankers from around the world to propose talks over how to reform, or even scrap, the now controversial Libor lending rate. King suggested that the issue should be top of the agenda at the Economic Consultative Committee meeting in the Swiss town of Basle [...]
Bernanke backs easy monetary stance to stimulate US recovery July 18, 2012 FEDERAL Reserve chairman Ben Bernanke yesterday shrugged off inflationary concerns in the US, warning against a premature reversal of the Fed’s ultra-dovish monetary policies. Bernanke said he was confident that America would avoid a double dip recession, but signalled that the Fed’s accommodative stance is here to stay for a while yet. Responding to concerns that [...]
FTSE edges up as UK unemployment falls July 18, 2012 The FTSE 100 tracked gains on Wall Street as investors were given hope that the US Federal Reserve could pump in more monetary stimulus. Fed chairman Ben Bernanke will deliver further testimony to the US Congress today, having already indicated that more aid to the economy was possible. Meanwhile UK unemployment dropped by 65,000 in [...]
MPs call for cap on King’s power July 17, 2012 REGULATORS grossly overreached themselves by forcing Bob Diamond out of the top job at Barclays, top backbench MP Andrew Tyrie declared yesterday, accusing Sir Mervyn King and Lord Turner of “handing the chairman a revolver to shoot the chief executive” at the troubled bank. MPs on the Treasury select committee (TSC) also dealt a blow [...]
Bernanke wary of slowdown yet drops no QE hint July 17, 2012 AMERICA’S sluggish economic recovery is worrying the Federal Reserve, its chairman Ben Bernanke told politicians in Washington DC yesterday, yet he remained guarded over prospects for more quantitative easing (QE3). Bernanke predicted that any reduction in the US unemployment rate – which remains above eight per cent – would be “frustratingly slow”. “Economic activity appears [...]
Earnings relief and Fed hints lift Wall Street July 17, 2012 US stocks rose yesterday after Coca-Cola and Goldman Sachs joined the growing roster of S&P companies that beat profit forecasts and as Federal Reserve chairman Ben Bernanke left the door open to more stimulus. The Dow Jones industrial average rose 78.33 points, or 0.62 per cent, at 12,805.54. The Standard & Poor’s 500 Index added [...]
Fed poised to offer stuttering economy monetary support July 17, 2012 The Federal Reserve stands ready to offer additional monetary support to a US economy that has slowed significantly in recent months, Fed Chairman Ben Bernanke told lawmakers. He told the Senate Banking Committee the recovery was being held back by tighter financial conditions due to Europe’s debt crisis and uncertainty surrounding US fiscal policy. Financial [...]
US consumers’ thrift prompts recovery fears July 16, 2012 MARKETS took a hit across the pond yesterday after data revealed that US retail sales have sunk for three straight months, prompting fears over the strength of the recovery. Despite the old adage to never underestimate the American consumer, retail sales last month fell 0.5 per cent – disappointing analysts who had predicted a small [...]
US MARKET DATA POINTS TO A SUMMER OF CHALLENGES July 16, 2012 TODAY we’ll hear more from Ben Bernanke, as the chairman of the US Federal Reserve delivers his semi-annual monetary policy report to the Senate Banking Committee. He’ll follow this up tomorrow by addressing the House Financial Services Committee. He is likely to remind policymakers that fiscal issues must be addressed, and that they cannot rely [...]
LIBOR CRISIS SPREADS July 15, 2012 LLOYDS became the latest UK bank to be dragged into the ongoing Libor scandal over the weekend, after the New York Fed made public emails sent by Barclays staff to the US authorities that accuse Lloyds of entering false Libor submissions in mid-2007. A swathe of previously unseen documents also show Bank of England governor [...]