Archive for February 10th, 2009

Bonds and Stocks

Bank Rescue Scheme Elicits Thumbs Down Reaction

February 10, 2009

Things are not going well on this critical day in the financial and economic crisis.  U.S. stocks and the dollar are trading lower in instant reaction to revamped details of Washington’s bank rescue plan.  Investors and analysts are complaining about the scheme’s ambiguity, complexity, and significant difference from previously leaked information to the press.  The […] More

Tomorrow's Bank of England Inflation Report

February 10, 2009

The U.K. quarterly Inflation Report can be a powerful interest rate signaling device as the November review aptly demonstrated.  The Bank of England had cut its benchmark rate by 50 basis points in October and by an eye-popping 150 basis points to 3.0% earlier in November. Nevertheless, the last Inflation Report bluntly forecast a drop […] More

Central Bank Watch

Swedish Riksbank to Ease at Least 50 Basis Points on Wednesday

February 10, 2009

A rate cut will be announced at 08:30 GMT tomorrow.  It will be Sweden’s fourth central bank rate cut since October 8th.  After an ill-advised final rate hike in early September, there were two cuts of 50 bps apiece in October and one of 175 bps to 2.0% on December 4th.  At the time of […] More

New Overnight Developments Abroad - Daily Update

New Overnight Developments Abroad: Concern Mounts Over European Banks

February 10, 2009

Press reports that Russian banks are seeking government assistance to restructure $400 billion of debt sent the euro as low a $1.2811.  The euro rebounded on denials of the story, but confusion persists.  The dollar is up 0.4% against the euro and has also risen by 1.9% against the Australian dollar, 1.0% versus the Canadian […] More