REVALUATION OF YUAN WILL BE GLACIAL November 17, 2009 BORIS SCHLOSSBERGDIRECTOR OF CURRENCY RESEARCH, GFT CURRENCY traders now widely assume that Asia will continue to lead the world economy to a recovery in 2010. Last weekend’s Asia-Pacific Economic Cooperation (Apec) meeting only reaffirmed that fact, with members pledging to maintain their fiscal stimulus programmes. Another rally in risk currencies should result as FX markets [...]
A legal Big Bang is round the corner, but most City firms are unprepared November 17, 2009 Do lawyers have a good profile? “Compared with estate agents and gunrunners, then yes”, replies Ian Dodds, director of BarFutures, a barristers’ chambers. But, alas, compared with more worthy professions such as doctors and teachers “probably not”. Quentin Poole, senior partner at Wragge & Co, reckons if the question was put to him a couple [...]
THE NEW YORK REPORT November 16, 2009 US stocks rose broadly yesterday, sending indexes to fresh 13-month closing highs, after Federal Reserve Chairman Ben Bernanke reinforced expectations that interest rates would stay low to spur growth. Bernanke repeated that the Fed was likely to keep interest rates exceptionally low for “an extended period,” a pledge that weighed on the dollar and drove [...]
THE LONDON REPORT November 16, 2009 BRITAIN’S top share index hit its highest closing level in more than 14 months yesterday as a weaker dollar sparked a rally in metals prices and some upbeat US data lifted market sentiment. The FTSE 100 ended up 86.29 points, or 1.6 per cent, at 5,382.67, its highest close since September 2008 and notching up [...]
Despite good results, Japan is still struggling November 16, 2009 GIVEN that the country has been languishing for much of the past 15 years, it came as something of a surprise to hear that Japan’s economy grew by a healthy 1.2 per cent in the third quarter of 2009, as exports and business investment rebounded. The stronger-than-expected data cheered the country’s Nikkei index, which rose [...]
CRUDE OIL’S STALL SPELLS BAD NEWS November 16, 2009 DAVID MORRISONCFD MARKET STRATEGIST, GFT DESPITE assurances to the contrary, the US administration wants a weaker dollar. Investors have seen this, however, and discount US Treasury Secretary Tim Geithner’s call for a strong dollar as simply hot air. Meanwhile the clear message from the Federal Open Market Committee (FOMC) is that US interest rates will [...]
Pressure still on for BA, despite the Iberia deal November 16, 2009 BRITISH AIRWAYS’ agreement to a $7bn merger with its Spanish rival Iberia has highlighted just how much the airlines have struggled during the recession. A surging oil price ahead of the financial crisis had put pressure on costs, which saw both businesses and consumers tighten their belts, causing passenger numbers to slump. The merger, said [...]
THE TIPSTER CHRISTMAS HAS ARRIVED EARLY IN THE MARKETS November 16, 2009 THE FTSE 100 smashed through 5,300 yesterday, rising 86 points to close at 5,382.67. For weeks the blue-chip index had been struggling to get through this resistance level but yesterday, it was firmly back on the upward trend. Has the traditional Santa rally started early? If so, the next target level would be the 5,500 [...]
Beer-bellies meet spread bets as arrows fly this week November 15, 2009 MENTION the name Mervyn King in the City and most readers of this newspaper will think of the chap who’s in charge of the Bank of England. But there is another fellow with the same name, who is far more at home on the oche than discussing the finer points of quantitative easing. This other [...]
YUAN’S PEG A PROBLEM FOR STRONG EURO November 15, 2009 JANE FOLEYRESEARCH DIRECTOR, FOREX.COMCURRENCY flexibility in Asia is a contentious issue, so the appearance of US President Barack Obama and US Treasury secretary Tim Geithner at the Asia-Pacific Economic Cooperation (Apec) meetings last week immediately brought the topic back into the spotlight. Geithner made the most of the opportunity to stress the importance of flexible [...]