Bonds and Stocks
Will The Global Economy Emerge Stronger?
February 25, 2009
It’s been another tough session for U.S. stocks, and the DOW as on Monday is testing 7197, which prior to this week had been its lowest previous intra-day level of the current decade, touched in October 2002. Before then, the DJIA had not been below 7197 since May 16, 1997. Much is being made of […] More
Currency Markets in the News
British Fourth-Quarter Growth
February 25, 2009
Real GDP dropped 6.0% last quarter at an annualized rate (saar) and posted a 1.9% decline from 4Q07. On those two bases, 4Q08 had the worst results in 114 quarters and 70 quarters, respectively. By activity, the production, construction, and services sectors recorded declines of 16.8%, 4.3%, and 3.7% saar. Within the first of these […] More
Central Bank Watch
Polish Monetary Policy Eased Slightly
February 25, 2009
The Bank of Poland cut its key interest rates by 25 basis points. The main reference rate is now 4.0%, still almost a full percentage point above on-year CPI inflation of 3.1% as of January. In combination with rate reductions of 75 basis points each on January 27 and December 23 plus one of 25 […] More
Currency Markets in the News
German 4Q Growth Deconstructed
February 25, 2009
Real growth last quarter tumbled 8.2% at an annualized rate (or -2.1% not annualized) and by 1.6% from a year earlier (or 1.7% after adjusted for a different number of working days). This was the third consecutive quarter of negative growth after annualized declines of 2.2% in 3Q08 and 2.0% in 2Q08. GDP growth in […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Surprising Calm
February 25, 2009
Markets are surprisingly calm. Today had the potential to be difficult after Bernanke’s testimony, Obama’s virtual State of the Union Address, and the release of more troublesome data in Asia and Europe. But the performances of Bernanke and Obama did more good than harm, and markets took a breather. Dollar movements have been mild: up […] More
