Deeper Analysis
Italy’s Lira Ancestry
July 12, 2011
Before it became one of the eleven charter members of the European Common Currency at end-1998, Italy’s currency was the lira, and it performed very poorly from 1971 to 1996. After the dollar devalued in December 1971, the lira was one of six European currencies to form the EEC snake in April 1972, an arrangement […] More
Larry's Blog
Media Giants Over-Stepping Their Roles
July 12, 2011
Rupert Murdoch is only the latest in a long tradition of larger-than-life media moguls crossing the line into politics. Silvio Berlusconi was a billionaire media giant before becoming Italy’s dominating politician of the past generation. Horace Greeley and William Randolf Hearst influenced earlier eras of U.S. history by going beyond the role of reporting and […] More
Deeper Analysis
Comments on Today’s North American Data Releases
July 12, 2011
Following a solid CAD 2.035 billion surplus in the first month of 2011, Canada has now posted four straight deficit that collectively outweigh that initial surplus by CAD 80 million. Canada has recorded 13 deficits in the last 15 reported months. The May deficit of CAD 813 million was similar to April’s CAD 857 million […] More
Central Bank Watch
Bank of Japan Policy Board Leaves Stance Unchanged
July 12, 2011
Japanese monetary policymakers eased within three days of the Sendai earthquake that struck Northeast Japan on March 11 but cutting the overnight money rate target to zero to 0.1% from 0.1% and by enhancing the asset purchase plan by 5 trillion yen to 40 trillion. A subsequent proposal to by one Board member to raise […] More
Central Bank Watch
Indonesian Monetary Policy Unchanged
July 12, 2011
First a little interest rate history. Bank Indonesia during the Great Recession implemented nine consecutive monthly cuts of its key interest rate, totaling 300 basis points and ending with a 25-bp reduction to 6.5% in August 2009. An 18-month rate pause followed until a 25-bp rate hike to 6.25% in February 2011, and officials have […] More
New Overnight Developments Abroad - Daily Update
Tsunami of Risk Aversion
July 12, 2011
Stocks fell by 3.1% in Hong Kong, 2.2% in South Korea, 2.0% in Taiwan, 1.9% in Australia, 1.8% in China, 1.5% in Sri Lanka, 1.7% in India, 1.4% in Thailand, Japan, and Indonesia, and 1.3% in Singapore. In Europe, the Paris Cac, German Dax and British Ftse have so far lost 2.4%, 1.9%, and 1.3%. […] More
