Central Bank Watch
Preview: Thursday’s ECB and Bank of England Decisions
August 4, 2010
Neither the ECB nor the Bank of England will change their respective key rates of 1.0% and 0.5%. There has not been a rate change since March 2009 in Britain’s case or May of last year at the ECB. The Bank of England reached the ceiling of its Gbp 200 billion asset purchase plan in […] More
Deeper Analysis
Double-Dip Recessions Happen Extremely Rarely in the United States
August 4, 2010
Based on their actual frequency, double-dip recessions are easier to imagine than to produce. In the early recovery stage of an economic expansion, investors invariably wonder and analysts often warn about the possibility of a quick relapse into a new economic downturn, or what’s popularly called a double-dip recession. An interval of one year or […] More
Deeper Analysis
Scant Change in U.S. Minus Ezone Services PMI Differential Last Month
August 4, 2010
The United States and Euroland each recorded decent expansion in both manufacturing and non-manufacturing as the third quarter got under way. In services, the U.S. index rose a half point to 54.3, while the euro area reading of 55.8 was 0.3 points above the level in June. In manufacturing data reported on Monday, the U.S. […] More
Central Bank Watch
Key Romanian Interest Rate to Stay at 6.25%
August 4, 2010
For a second straight meeting, officials at the National Bank of Romania kept the monetary policy rate at 6.25%. Cuts in January, February, March and May had reduced the key interest rate by 175 basis points on top of 225 basis points of reduction implemented in five steps during 2009. Romania had been comparatively late […] More
Central Bank Watch
Bank of Indonesia Leaves Key Interest Rate at 6.5% But Drops a Clue of Concern
August 4, 2010
An unchanged central bank in Indonesia was as expected and perpetuates the stance that was reached in August 2009 following six cuts of 25 basis points and three reductions of 50 bps from a peak of 9.5% prior to December 2008. Unlike some Asian central banks, the authorities at Bank Indonesia have given, up to […] More
New Overnight Developments Abroad - Daily Update
Japanese and European Stock Prices Head Lower
August 4, 2010
Equities fell 2.1% in Japan, 0.7% in Australia, 0.4% in Singapore and 0.1% in South Korea but firmed 0.6% in Indonesia and the Philippines. In Europe, stocks have lost 1.2% in Great Britain and Spain, 0.7% in France, and 0.5% in Germany. Today’s data focal points are various service sector purchasing manager readings and the […] More
