November 24, 2010

Sentiment toward the euro remains poor as an increasing number of analysts postulate the possibility the union will break up. Portugal, the likeliest next target in the debt crisis food chain, has been crippled by a general worker strike to protest budget austerity. S&P downgraded Irish debt by two steps to A from AA- and […] More

A Proposal from Geithner to the G20

October 22, 2010

Finance ministers and central bank chiefs from the Group of Twenty are meeting in Gyeongiu, South Korea.  U.S. Treasury Secretary Geithner has proposed a target for current account-to-GDP ratios, which the big surplus countries appear to be rejecting.  Market players doubt any significant breakthrough on currency management will emerge at this meeting but are in […] More

Unsuccessful Japanese Intervention

September 24, 2010

It is believed that the Bank of Japan did a second round of forex intervention, selling yen in follow-up to the massive operation conducted on September 15.  Unlike then, the central bank did not comment on or confirm that it had acted.  Market participants were not surprised by the action, as the yen had crept […] More

Evidence of Stronger-Than-Assumed European Growth as Investors Await Bank Stress Test Results

July 23, 2010

Germany and Britain reported data with huge upside surprises.  Stress tests performed on 91 European banks will begin to get reported today at 16:00 GMT (noon on the U.S. East Coast.  Some Spanish banks are expected to fail.  Investors are already complaining that the test assumptions were not sufficiently rigorous.  Moody’s placed Hungary’s credit rating […] More

Cynicism Over Euro Area Debt and Beijing’s Yuan Policy Sends Stocks Lower

June 22, 2010

Equiites fell by 1.2% in Japan and Australia, 0.7% in India, and 0.5% in South Korea, Singapore, Sri Lanka and New Zealand.  Downward pressure intensified in Europe where stocks so far show losses of 1.8% in Madrid, 1.6% in Paris and and London, and 1.0% in Frankfurt.  U.S. futures are lower, too. The yuan trimmed […] More

Greek Government Formally Requests Aid Package Be Activated

April 23, 2010

Faced with sky-high Greek interest rates, the government in Athens has asked that the EUR 45 billion aid package from the EU and IMF be activated.  The process not requires consent from all 15 other members of the euro area.  The big uncertainty is Germany’s response, but on the whole markets are relieved that something […] More

Investor Sentiment Hit By IFO Figures and Various Comments

February 23, 2010

Harvard Professor Rogoff, former chief IMF economist, is predicting likely sovereign debt defaults in coming years, plus spending cuts and weak growth in the United States. Testimony by four Bank of England officials, including Governor King, were quite guarded.  Additional quantitative easing may be needed. Economist Roger Bootle, a former British Treasury advisor, warned of […] More