QE2 strong option says BOJ chief October 28, 2010 THE Bank of Japan (B0J) said yesterday boosting its five trillion yen (£38bn) asset buying plan was a “strong option” if the economy deteriorated. The BOJ’s governor Masaaki Shirakawa made the admission as he said he was bringing forward its next policy review to 4-5 November right after the US Federal Reserve meets, which markets [...]
FTSE hit by fears UK recovery will stall without fresh stimulus October 27, 2010 BRITAIN’S top shares posted their biggest one-day losses in over two months yesterday, hit by market concerns that further quantitative easing measures in the US might be less aggressive than expected. The FTSE 100 was down 61.28 points, or 1.1 per cent, at 5,646.02, its lowest closing level since 5 October, adding to the 0.8 [...]
Wall Street falls as investors lose faith October 27, 2010 US stocks fell yesterday as investors dialed back expectations of how aggressively the Fed would act to stimulate the economy. With the uncertain outcomes of the US elections and a Fed meeting next week, traders positioned themselves for more volatile markets. The CBOE Volatility index rose 2.4 per cent and was up for the third [...]
PIMCO’S GROSS ISSUES WARNING OVER A BRAZEN PONZI SCHEME: QE October 27, 2010 PIMCO’S resident bond expert Bill Gross yesterday, in his usual verbose fashion, issued a stark warning over the upcoming second round of quantitative easing (QE) in the US – dubbing it no less than a “Ponzi scheme” on the part of the Federal Reserve. “Check [sic] writing in the trillions is not a bondholder’s friend; [...]
THE TIPSTER October 27, 2010 THE Bank of Japan (BoJ) is expected to make its interest rate decision tomorrow and investors will be looking for signs of further intervention to weaken the yen. Recently the dollar-yen looks like it has reached an area of support around the 15-year low of ¥80.00. Considering that the market is speculating that there will [...]
WHAT THE OTHER PAPERS SAY THIS MORNING October 26, 2010 FINANCIAL TIMES CHINA AND US CLOSER ON TRADE TARGETS China and the US have the basis for an agreement at the summit of the Group of 20 leading nations next month on setting targets to cut trade imbalances, according to an adviser to the Chinese central bank. Li Daokui, a member of the central bank’s [...]
THE TIPSTER October 26, 2010 THE Australian dollar-US dollar is still tentatively trading below parity. As one of the few advanced economies to avoid a recession, the Australian economy should benefit from high demand for raw materials, especially from China. Bulls expect the Aussie to break through to parity soon, so it may be a trade for the optimistic. Capital [...]
Dudley: Fed has no “magic wand” October 26, 2010 The US Federal Reserve cannot “wave a magic wand” to fix the economy overnight, but it can provide “essential” support, a top Fed policymaker. Indeed, support will likely be warranted unless economic conditions improve, William Dudley, president of the New York Fed and a permanent voter on the Fed’s policy-setting panel, said in a speech [...]
Fed-up Fabregas bans talk of title challenge after City win October 25, 2010 ARSENAL captain Cesc Fabregas has poured scorn on endless assessments of the Gunners’ chances of winning a first Premier League title since 2004. The north Londoners delivered a powerful statement of intent with a 3-0 win at Manchester City on Sunday, ending a run of defeats against fellow title hopefuls. The victory propelled Arsenal into [...]
US foreclosures set for probe as Bernanke admits concern October 25, 2010 FEDERAL Reserve Bank chairman, Ben Bernanke, said yesterday the initial findings of an investigation by US regulators into home foreclosures would be published in November. Bernanke said federal banking agencies were conducting an “in-depth” review of practices at the largest US mortgage lenders as he addressed a joint conference of the Fed and the Federal [...]