Debate sparked by 140-letter Sentance April 15, 2012 HOLDING down the currency artificially is standard fare for politicians who want to give their country’s industries a competitive boost – China’s opponents in the US have long accused it of manipulating its currency to support economic growth, while the Fed has been accused of doing the same by printing money. Closer to home, the [...]
CHARITY RAID SET TO COST BILLIONS April 12, 2012 GEORGE Osborne’s plan to cap tax relief on charitable donations will cost good causes billions of pounds, the City warned last night, as a series of senior MPs fed a growing political revolt. Investment manager Brewin Dolphin and accounting firm Baker Tilly spoke out against the proposal while business secretary Vince Cable said he was [...]
Investor fears force Italian debt yields up April 12, 2012 ITALIAN bank stocks dropped sharply yesterday after renewed worries about the government’s ability to pay its debts pushed up state borrowing costs. Greece’s economic nightmare continued as official data showed unemployment increased to a record high of 21.8 per cent in January, and youth unemployment hit 50.8 per cent. Meanwhile UBS analysts warned that the [...]
Fed hawk in new call over inflation April 12, 2012 Inflation in the US will be above target next year and may force the Federal Reserve into earlier tightening than expected, according to Minneapolis representative Narayana Kocherlakota. One of the Fed’s more hawkish economists, Kocherlakota said at a speech last night that normalisation of interest rates could begin as soon as late this year – [...]
Fed’s Beige Book lifts hopes for solid recovery across the States April 11, 2012 THE US economy is continuing to expand at a “modest to moderate pace,” the Federal Reserve reported last night, as the manufacturing, professional services and retail sectors all recorded strong growth. However, rising energy and fuel prices are beginning to worry producers and consumers, according to the Beige Book – a regular publication which analyses [...]
Pressure on US banks to raise capital buffers April 11, 2012 TOP FED officials yesterday warned against the risks to financial stability posed by European debt and pushed for banks to hold more capital against future crises. Kansas City Federal Reserve president Esther George said the leverage ratio is one buffer in the financial system that is historically there to absorb losses, and that there must [...]
LOCKHART: NO NEED FOR MORE QE April 11, 2012 THE US economy remains fragile but things would have to get a lot worse for the Federal Reserve to launch another round of monetary stimulus, Atlanta Fed president Dennis Lockhart said yesterday. “I view it as a policy that would respond more to a fairly dramatic negative change of direction in the economy,” he said.
Good earnings help US shares bounce back April 11, 2012 AN encouraging start to earnings season helped US stocks rebound yesterday five days of losses that pushed the S&P 500 below a key technical level. Equities cut gains late in the session after the Federal Reserve said rising energy costs were a concern for economic growth. Atlanta Fed President Dennis Lockhart said the economy would [...]
Apple sweet as it hits $600bn market value April 10, 2012 THE STELLAR performance of Apple shares reached a new milestone yesterday as the firm’s market value hit $600bn (£378bn) for the first time in its history. The stock achieved a new record high of $644 in early trading, re-inforcing the technology giant’s position as America’s most valuable company. Microsoft is the only other firm to [...]
FED OFFICIAL: BUSINESSES FEAR INFLATION RISK April 10, 2012 THE BOSSES of America’s top firms have begged the Fed to stop printing money, because they fear inflation will soar, the central bank’s Richard Fisher said yesterday. Although not a voter in interest rate decisions this year, Fisher has made it clear he opposes any further monetary easing, and instead favours more clarity on taxes [...]