Stocks sink on disappointing Federal action June 20, 2012 US stocks edged lower yesterday after the Federal Reserve acted to aid the fragile economy with stimulus measures that were in line with market expectations but went no further. Stocks rallied in recent days in the hope that the US central bank would extend Operation Twist, a bond-buying program designed to lower long-term rates and [...]
FedEx tops its profit forecast June 19, 2012 FEDEX reported above-forecast adjusted quarterly profit yesterday and forecast higher 2013 results, as it said it expected to take new cost-cutting measures to offset shipments weakened by soft global economies. The world’s second-largest package delivery company said that net profit for its fourth quarter ended 31 May was $550m (£350m), or $1.73 per share, down [...]
Hopes the Federal Reserve will extend stimulus lifts US stocks June 19, 2012 US stocks rose yesterday on hopes that the Federal Reserve will agree to extend stimulus measures as the economy struggles to recover and the Eurozone’s debt crisis gets worse. The S&P 500 has gained 7.2 per cent from a five-month intraday low reached on 4 June. The benchmark index closed above its 50-day moving average [...]
US tech stock rally stymied by debt fears June 18, 2012 THE Nasdaq advanced yesterday, propelled by a rally in Apple and other big-cap tech stocks, but fears Europe’s debt crisis is in danger of worsening limited broader gains. Positive analyst comments lifted both eBay, up 4.5 per cent to $42.49, and Groupon, up 10.8 per cent at $11.15. Apple accounted for about half the Nasdaq’s [...]
Reflections on the causes of crises from one of America’s top bankers June 18, 2012 PUBLIC policy decisions are being made based on a myth. The misunderstanding driving this myth is that deregulation of the financial industry in the US, combined with greed in financial markets, caused the financial crisis and the continuing recession. And the root of this economic misconception is philosophical. In fact, the crisis and recession are [...]
MARKETS LOOK TO THE FED FOR ITS NEXT POLICY MOVE June 18, 2012 Last Friday, equity markets were rallying on rumours that central banks were preparing for coordinated action, should the majority of Greek voters make the “wrong” decision and back the anti-bailout party, Syriza. Yesterday, the major indices gave up early gains following the news that Syriza came a close second to New Democracy. After all, although [...]
A Paris adventure for City cycling teams June 17, 2012 SO MUCH for a relaxing weekend. That was the last thing on offer for the team of 17 Nomura employees who set off last Thursday to spend three days cycling 450km from London to Paris to raise money for the Rainbow Trust. Leaving Nomura’s London headquarters at One Angel Lane, the intrepid cyclists were warmly [...]
It is not all just about Greece as the G20 meets in Mexico June 17, 2012 NEW Democracy may have eked out a victory in Greece last night, but that won’t make Europe’s crippling solvency problems go away. It pays to take a look at history: Greece was the very first country to default on its debt in recorded history, going back to 377BC. Moreover, since its independence in 1829, Greece [...]
THE WALL ST WEEK AHEAD June 17, 2012 IN addition to backyard barbecues and beer, this year’s Father’s Day was likely to have seen many investors with their minds on Greece. The Greek election – the vote yesterday that grabbed the attention of the world’s financial markets – is expected to create volatility in the new trading week, in particular, for US stocks, [...]
US investors eye stimulus after weak jobs stats June 14, 2012 WEAK US jobless figures and lower inflation helped fuel an uptick on Wall Street yesterday, as traders took the data as a signal that a new round of quantitative easing is more likely. The Labor Department reported 386,000 new claims for jobless benefits last week, an unexpected rise of 6,000 on the previous week. And [...]