In his address on Tuesday, Fed Chairman Ben Bernanke, made it quite clear that the US economy was doing well, but there were some areas of concern and that the economy was exposed to many outside factors that could derail growth or cause inflation. In his speech he makes it clear that the Fed would […]
Navigating The US Economic Recovery Through Dangerous Waters Read More »
Gold sky-rocketed Monday as speculators took profits on a speech by U.S. Federal Reserve Chairman Ben Bernanke earlier in the day, taking it as an indication that loose monetary policy is set to continue. Gold rose 26.95 to hit 1691.75. That’s the highest settlement in nearly two weeks. Investors were buying up gold futures last
Fed Chair Bernanke Sends Gold Soaring (Again) Read More »
In recent years, we have witnessed the price of gasoline at the pumps diverging from its direct association to the price of oil. We also have witnessed the same with interest rates. In the US, most mortgages, personal loans, credit cards and consumer credit were tied to the Federal Reserve rates, but no longer. When
What Happens With The Price Of Crude Oil Separates From Supply And Demand Read More »
The New Zealand dollar fell as investors await more evidence of the pace of global growth, including Chinese manufacturing and US consumer confidence and durable goods orders. The New Zealand fell to 81.60 US cents at 5pm from 81.65 cents at 8am and 81.88 cents at the close of New York trading on Friday. The
The Kiwi This Week Read More »
The recent reports released by the Australian government showed a reduced demand for the 4th quarter of 2011 and into 2012. Taking a broader perspective, although Australian growth outcomes have been better than most other advanced nations, Australian growth has still been stuck at a sub-trend pace for four years. Given the persistent weakness in
Australia Looks To RBA To Reduce Rates Read More »
German bonds had a second consecutive positive session on the back of bad EMU eco data whereas US bonds booked small gains. In a risk off sentiment, equities corrected further off the highs, commodities were dropped and on intra-EMU bond markets, spreads widened for a third straight day. Losses in EUR/USD were limited but will
Eurozone Reacts To Poor PMI Read More »
Negative sentiment returned to financial markets as the world slept with investors worried that the European heartland is now at risk of tumbling into recession. The flash PMI estimates for China, France, Germany and the wider Eurozone are published in quick succession on yesterday. Previously, the Markit Eurozone Composite PMI signalled a renewed contraction in
Negative Sentiment Returned To Financial Markets As The World Slept Read More »
Australian central bank Director Stevens has been under incredible pressure from every lobbyist group and politician in Oz, to do what seems right but in the long run may not be right. Stevens has done a great job, navigating Australia’s, monetary policy and economy through a long rough course. Now with an obvious slowdown in
Trouble Brewing In Oz Read More »
Citigroup economist Willem Buiter, warned that Spain may be forced to follow the lead of the Greeks as it is crippled by debt burden. “Spain is the key country about which I’m most worried,” Buiter said in a report in Bloomberg. “It’s really moved to the wrong side of the spectrum and is now at
Get Out Of The Way Greece, Its Spain's Turn In The Spotlight Read More »
“In the coming weeks and months, we believe we are more likely to hear rhetoric about currency wars rather than inflation wars – which is why today we have a tactical short term call to be long US dollars,” UBS economists told clients last week. A currency war of sorts may soon be at foot
UBS Warns Of Coming Currency Wars Read More »
