SWISS FRANC IS STILL THE SAFE OPTION August 9, 2011 WE ARE on a bumpy road with a very few spare tires,” said Pimco chief executive Mohamed El-Erian, just before US equity markets opened for trade yesterday morning. I couldn’t agree more. Capital markets are in turmoil and the primary reason for the meltdown is the absolute lack of confidence in American and European leadership. [...]
US Fed pledges two years of low rates August 9, 2011 The US Federal Reserve has said it will keep its hefty monetary policy stimulus for at least another two years in an effort to support a flagging economy and fragile global markets. It was unclear whether the decision, which involved no new committment of funds for bond purchases, would be enough to put a floor [...]
Markets bounce back ahead of Fed statement August 9, 2011 Britain’s top share index bounced back above the 5,000 level and US markets opened higher as investors hoped for some soothing words from the US Federal Reserve on the global debt and growth problems. Wall Street has gained ground since opening, with major indices climbing more than two per cent ahead of the Fed’s policy [...]
London’s day of shame: plunging markets, mob rule and absent leaders August 8, 2011 THESE are terrible, depressing times. London is burning. Gangs of criminals have been allowed to roam unchecked, with our horrifyingly powerless authorities failing to bring the situation under control. To those of us who love London, yesterday was a day of gloom, shame and shared pain. The images of dozens of shops, homes and cars [...]
Bullion hits new record after US downgrade August 8, 2011 Bullion roared to record highs above $1,700 an ounce on Monday as an unprecedented downgrade to the US credit rating sent investors scrambling out of riskier assets, hammering equity markets and the dollar. Both US gold futures and cash gold could rise further if pledges by the Group of Seven nations to support battered financial [...]
Rolling out the printing press again August 7, 2011 DESPITE the promised abolition of boom and bust thanks to central bank intervention, the US economy seems to be in a phase that looks very much like a bust. As such, there is a growing likelihood that Fed chairman Ben Bernanke will be firing up the printing presses to fund a third round of quantitative [...]
FTSE fightback foiled by bank weakness August 4, 2011 The banking sector put the brakes on potential gains on the FTSE 100 in early trading after poor results from Lloyds. The index was expected to be given new impetus today as hopes of a new package to breathe life into the US economy encouraged investors elsewhere. Former Federal Reserve vice chairman Donald Kohn said [...]
Deutsche Post ups forecast August 2, 2011 Deutsche Post nudged up its 2011 outlook as it cut costs and garnered more customers seeking supply chain services. As the economy improves, manufacturers of machine parts, cars and other goods ramp up production and pay Deutsche Post to transport parts and finished products. Europe’s biggest express delivery and mail company said on Tuesday it [...]
AMERICA MAY SAIL ON THE QE3 THIS FALL August 1, 2011 WE HAD a first look at UK and US second quarter GDP numbers last week. The US was a shocker, coming in at 1.3 per cent on expectations of 1.7 per cent. Worse than that, the first quarter of 2011 and the fourth quarter of last year were both revised down sharply. This means the [...]
Fed slaps RBS with cease and desist on US practices July 27, 2011 THE FEDERAL Reserve last night ordered the Royal Bank of Scotland to develop a plan for improving oversight of its US operations and complying with anti-money laundering requirements. RBS has 60 days to submit a written plan showing how it will fall in line with the Bank Secrecy Act and beef up its risk-management practices, [...]