Bank of England Meeting Preview: No Rate Change Expected
June 3, 2008
In few economies is the stagflation dilemma as pronounced than in Britain. The price component of the factory-sector PMI hit a series high of 62.0 in May, while the activity component was exactly at the 50.0 line of demarcation between expansion and contraction. That 50.0 score represented a 6.1-point drop since July 2007, one month […] More
Currency Markets in the News
Japanese Expansion Downshifts
June 3, 2008
Japan will be hard-pressed to achieve positive growth of any sort in 2Q08 after expanding at a 2.9% annualized pace in the two quarters between 3Q07 and 1Q08. Industrial production in April was already 2.0% below its average first-quarter level. Real personal spending recorded three consecutive month-on-month declines through April, and retail sales slid 0.6% […] More
Central Bank Watch
Australian Central Bank Stays in Wait-and-See Mode
June 3, 2008
One month ago, RBA officials said credit demand “has weakened.” A released statement after today’s meeting escalated that view to “credit expansion to both households and businesses has weakened significantly.” Outside of that modification, the two statements read essentially the same. Opposing forces — tighter financial conditions but a big future stimulus from a strengthening […] More
New Overnight Developments Abroad - Daily Update
New Developments Abroad
June 3, 2008
The dollar and sterling are lower in tandem, with losses of 0.6% against the Swiss franc, 0.4% versus the Aussie dollar, 0.3% against the euro, and 0.2% against the yen, C-dollar and kiwi. Asian stocks much lower. Nikkei, Australian bourse and Hang Seng each -1.6%. European stocks mixed with Dax off 0.3% but Ftse up […] More
