INVESTORS’ GLOSSARY February 24, 2010 DISCOUNT RATE Last week the Federal Reserve announced that it would raise the discount rate by 25 basis points to 0.75 per cent. But what is the discount rate? According to the Federal Reserve Board, it is the interest rate charged to commercial banks and other depository institutions on loans they receive from their regional [...]
FTSE rocked as mining shares fall on commodity price drop February 23, 2010 BRITAIN’S top shares shed 0.7 per cent yesterday, tracking early falls on Wall Street and pressured by weaker miners and energy issues as commodity prices fell with a firmer dollar after dull data. At the close, the FTSE 100 was 36.98 points lower at 5,315.09, having hit a one-month high earlier in the session. US [...]
Data undermines hopes of recovery February 23, 2010 US stocks suffered their biggest one-day decline in nearly three weeks yesterday after a sharp drop in consumer confidence heightened worries over one of the most vulnerable areas of the economy. Consumer confidence in February slumped to a 10-month low as the short-term outlook on jobs worsened. Results from retailers added little hope, as bellwethers [...]
WHAT THE OTHER PAPERS SAY THIS MORNING February 22, 2010 FINANCIAL TIMES NORTEL AIMS TO BLOCK PENSIONS CLAIM Nortel Networks and its creditors are seeking to block the UK pensions regulator from pursuing a claim worth as much as £2.1bn ($3.3bn) against the company’s worldwide assets to cover the shortfall in its UK scheme. The Canadian telecommunications equipment maker and its UK subsidiary filed for [...]
Wall Street waits for Bernanke’s view on growth February 22, 2010 US stocks finished flat yesterday as investors held back before congressional testimony by Fed Chairman Ben Bernanke, while scattered buying lifted shares of health insurers and banks. President Barack Obama revised plans for an overhaul of US healthcare. The Morgan Stanley healthcare payor index rose 1.7 per cent, but investors said financial shares bene fited [...]
Torode offers more sizzle than steak February 22, 2010 The Luxe On hearing the name of John Torode, those in the know are likely to grunt with satisfaction as the image of a large, juicy steak enters their head. Perhaps they’ve even read his book, called Beef. Others will murmer an approving “ah yes” as a great cocktail, smoothie, or debaucherous night out at [...]
How a secret rule caused the crisis February 22, 2010 SLOWLY but surely, some economists are beginning to piece together the real causes of the crisis. And as you might imagine, their findings are strikingly at odds with the conventional explanations, which tend to revolve around greed, bankers’ animal spirits and deceit. One brilliant new paper shows how an obscure regulation deliberately encouraged US retail [...]
Honeywell International chief to join Obama panel February 22, 2010 The White House is considering naming the chief executive of Honeywell International, a former vice chairwoman of the Federal Reserve to a new panel on tackling budget deficits. Confirmation by the Obama administration comes after a Republican and two Democrats emerged as leading candidates to be among Obama’s six appointments to the panel. Republican David [...]
ECONOMIC DIARY February 21, 2010 AFTER a week packed with economic data releases, the next five days promise to be a bit quieter. Last Thursday, the US Federal Reserve hiked the rate it charged banks to hold reserves in a surprise move that signalled a return towards more normal monetary policy. On Wednesday Fed chairman Ben Bernanke will be giving [...]
Fed move to lift US stocks and dollar February 21, 2010 ALTHOUGH the Federal Reserve was keen to downplay its surprise move last Thursday, the markets initially reacted strongly to its announcement that it would hike the rate it charges banks for emergency loans. But while the currency market saw the biggest moves – the dollar strengthened to a nine-month high of $1.5345 against the pound [...]