Obama urges new stimulus September 8, 2011 AMERICA looks set for yet another double-pronged dose of government stimulus, after President Barack Obama launched his “American Jobs Act” late last night, and Fed chief Ben Bernanke hinted at more monetary easing. Obama urged Congress to vote through his $447bn (£280bn) programme of tax cuts and government spending hikes, repeating the words “pass this [...]
WHAT THE OTHER PAPERS SAY THIS MORNING September 8, 2011 FINANCIAL TIMES DEADLINE LOOMS TO OUT SECRET SUITORS Companies covertly circling UK acquisition targets are being warned by advisers that they risk the disclosure of their identities to the market in coming days if they pursue bid talks. On 19 September, the UK Takeover Panel, which regulations M&A of public companies, brings into force new rules [...]
Wall St slumps on Fed speech September 8, 2011 US stocks closed sharply lower yesterday after Federal Reserve chairman Ben Bernanke gave no indications of new stimulus measures to boost the flagging economy in a keenly awaited speech. Investors have been looking to Bernanke, who gave his outlook on the US economy yesterday, and other policymakers to address a host of concerns from slowing [...]
America’s consumers perk up yet recovery is still slow and bumpy September 7, 2011 CONSUMER spending increased slightly in most US Federal Reserve Districts, according to the central bank’s latest Beige Book, published last night. Published eight times a year, yesterday’s edition highlighted the risks facing the US economy as activity slowed in several regions. Economic uncertainty is blamed for reduced forecasts across the country, and New York suffered [...]
German voters won’t bankroll peripheral profligacy forever September 6, 2011 WHILE Greece and Italy continue to take a hammering in the bond markets, traders are today shifting their gaze to Germany, as its constitutional court decides on whether the bailouts are legal. Under article 103 of the Maastricht Treaty, “neither the Community or any other member state is liable for or can assume the commitments [...]
Gold price hits new record over recession fears September 6, 2011 Spot gold has climbed more than 1.5 per cent to a record high above $1,920, as fears over the worsening eurozone debt crisis and stalled global growth have driven investors into safe havens. This is the 12th record high that spot gold has reached since the beginning of August, and the rally is expected to [...]
UK’s economic outlook is increasingly weak September 5, 2011 THE UK’s economy is sick and the cheap fix of quantitative easing (QE) is being touted as the cure. The broad consensus was that yesterday’s Markit/Cips services purchasing managers’ index (PMI) was going to come in at around 54.0. It instead dropped off a small cliff, declining from 55.4 in July to 51.1 in August. [...]
HOPES OF QE3 CAN’T DISPEL THE US GLOOM September 5, 2011 AT THE beginning of last week, investors appeared to have regained their risk appetite. Although trading volumes were light, equities continued their recovery following the sharp sell-off in early August. As we approached month-end, buyers appeared confident that a near-term bottom for the major stock indices was in place. Yet most economic data releases continued [...]
Markets on look out for Federal Reserve easing September 4, 2011 STUBBORN unemployment is expected to prompt US Federal Reserve chief Ben Bernanke into taking further action to stimulate the economy later this month – which might include a further round of quantitative easing. In the weakest payroll stats since last September, August’s figures showed no fall in unemployment, with July’s job creation numbers revised down [...]
WALL STREET WEEK AHEAD September 4, 2011 Friday’s jobs report that showed hiring in the US unexpectedly ground to a halt in August is increasing speculation the Federal Reserve will move to stimulate the economy. But will it help stocks? Fed action – if it happens – is no longer viewed as the elixir for the stock market it once was. Wall [...]