New Overnight Developments Abroad - Daily Update
Uneasiness about Europe
September 25, 2012
Numerous concerns persist about the euro area debt crisis. Will a banking union get formed? Will Spain submit to outside conditional aid? Does the Bundesbank have a hidden agenda to torpedo the monetary union? What’s to be done about Greece, which seemingly cannot meet its bailout macroeconomic promises? Doomsayer Nouriel Roubini, NYU’s pessimistic economics professor, […] More
Central Bank Watch
Bank of Israel: Key 2.25% Interest Rate Left Unchanged
September 24, 2012
A high level of global growth risks and projected in-target Israeli CPI inflation of slightly more than 2.0% featured prominently in the Bank of Israel’s decision not to change its 2.25% benchmark interest, according to a released statement after the latest monthly policy meeting. Inflation is targeted between 1% and 3%. Meetings in July and […] More
New Overnight Developments Abroad - Daily Update
Fresh Euroscepticism as German and French Leaders Disagree
September 24, 2012
Risk aversion staged a comeback as the final week of the third calendar quarter got under way. In European trading, share prices have fallen by 1.6% in Spain, 1.5% in Italy, 1.2% in France, 0.6% in Germany, and 0.5% in Britain. In the Pacific Rim, stocks fell 1.3% in Vietnam, 0.7% in Malaysia, 0.5% in […] More
Foreign Exchange Insights and Next Week
Next Week
September 21, 2012
This will be the last week of the third quarter and the first half of Japan’s fiscal year. Central bank interest rate policy meetings are scheduled in Israel, the Czech Republic, Hungary and Romania. Quite a few nations will be reporting retail sales, consumer and/or producer prices and trade figures. Retail sales are arriving in […] More
Foreign Exchange Insights and Next Week
Looks to Be a Down Quarter for the Dollar — What’s Next?
September 21, 2012
Just a single week remains of the third quarter of 2012, and the dollar is showing net losses so far of 2-4% against the yen, dollar, Swissie, sterling, and Canadian, Australian and New Zealand currencies. It also crested during the quarter against the renminbi and is grinding lower but at a very gradual pace. Lately, […] More
New Overnight Developments Abroad - Daily Update
Uneventful Friday So Far
September 21, 2012
The dollar is unchanged against the yen and yuan but down 0.8% against the Australian dollar, 0.5% versus the kiwi, 0.4% relative to sterling and the euro, 0.3% vis-a-vis the Swiss franc and 0.2% against the loonie. Share prices in India have jumped 2.2%. Elsewhere in the Pacific Rim, equities firmed 0.7% in Hong Kong, […] More
Central Bank Watch
No Follow-Up Rate Cut at the South African Reserve Bank
September 20, 2012
At its previous meeting the MPC assessed that conditions justified a pre-emptive loosening of the monetary policy stance. Although global and domestic growth conditions remain challenging, the MPC is of the view that a further reduction in the repurchase rate is not appropriate at this stage. The MPC has therefore decided to keep the repurchase […] More
Central Bank Watch
Pause Continuing in Taiwanese Monetary Tightening
September 20, 2012
The Board of the Central Bank of the Republic of China (Taiwan) left its discount rate at 1.875%. It has been at that level since the last of five sequential quarterly increases in June 2011. Each of those hikes amounted to 12.5%. The discount rate earlier was slashed from 3.625% prior to September 2008 to […] More
New Overnight Developments Abroad - Daily Update
Disappointing Purchasing Managers Reports from China and Euroland
September 20, 2012
Share prices and bond yields are lower, while the dollar has risen in response to continuing concern about Spain and weak preliminary purchasing manager survey data for September. The dollar has climbed 0.7% against the euro and Australian dollar, 0.6% versus the Swiss franc, 0.4% against the loonie, 0.3% relative to the kiwi and 0.2% […] More
Larry's Blog
Republicans Versus Democrats: Which Party Delivers Greater Economic Well-Being?
September 19, 2012
The economic track record of America’s two main policy parties is a topic treated before on this blog in several different articles over the past four years. Given the emotional stakes associated with the question of which party outperforms the other, it is perhaps not surprising that this series of updates has generated some of […] More
