MarketPulz

Banks Prepare for Greek Default

noreply@blogger.com (Unknown) — Mon, 26 Sep 2011 10:41:00 +0530

Bankers are bracing for a Greek default, and their best hope is that Europe can erect firewalls around the banking system strong enough and soon enough to prevent it from spreading to other euro-zone countries.

via cnbc

G 20 Pledges to keep markets Stable

noreply@blogger.com (Unknown) — Fri, 23 Sep 2011 09:01:00 +0530

Financial ministers and central bankers from the Group of 20 major economies said in a statement late Thursday that the bloc would conduct a "strong and coordinated international response to address the renewed challenges facing the global economy." The comminque added that the G-20 would take all necessary actions to preserve the stability of banking systems and financial markets as required."

EU officials expect Greece to default

noreply@blogger.com (Unknown) — Thu, 22 Sep 2011 20:14:00 +0530

There is a growing consensus among EU diplomats and officials that Greece will default while remaining inside the eurozone.

Intense talks are taking place in Berlin, Paris, Frankfurt and Brussels about how to manage a Greek default in the short to medium term.

“It is not now but a question of when and how, not if,” said a source.

via telegraph

IMF : Weak and Bumpy Global Recovery Ahead

noreply@blogger.com (Unknown) — Thu, 22 Sep 2011 12:57:00 +0530

The global economic recovery is slowing, with world growth projected at 4 percent in both 2011 and 2012, down from over 5 percent in 2010, the IMF said in its latest forecast.

IMF Notes

Global growth forecast to moderate to 4 percent in 2011 and 2012
Advanced economies facing anemic growth of only 1.6 percent in 2011
Multiple shocks combined with insufficient rebalancing stalling recovery

read full report here

George Soros : The Double Dip is Already Here

noreply@blogger.com (Unknown) — Thu, 22 Sep 2011 09:07:00 +0530

FOMC Statement

noreply@blogger.com (Unknown) — Thu, 22 Sep 2011 09:03:00 +0530

The following is the text of the Federal Reserve’s decision Wednesday to swap $400 billion of holdings into longer-term debt:

“Information received since the Federal Open Market Committee met in August indicates that economic growth remains slow. Recent indicators point to continuing weakness in overall labor market conditions, and the unemployment rate remains elevated. Household spending has been increasing at only a modest pace in recent months despite some recovery in sales of motor vehicles as supply-chain disruptions eased. Investment in nonresidential structures is still weak, and the housing sector remains depressed. However, business investment in equipment and software continues to expand. Inflation appears to have moderated since earlier in the year as prices of energy and some commodities have declined from their peaks. Longer-term inflation expectations have remained stable.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee continues to expect some pickup in the pace of recovery over coming quarters but anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate. Moreover, there are significant downside risks to the economic outlook, including strains in global financial markets. The Committee also anticipates that inflation will settle, over coming quarters, at levels at or below those consistent with the Committee’s dual mandate as the effects of past energy and other commodity price increases dissipate further. However, the Committee will continue to pay close attention to the evolution of inflation and inflation expectations.

To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the Committee decided today to extend the average maturity of its holdings of securities. The Committee intends to purchase, by the end of June 2012, $400 billion of Treasury securities with remaining maturities of 6 years to 30 years and to sell an equal amount of Treasury securities with remaining maturities of 3 years or less. This program should put downward pressure on longer-term interest rates and help make broader financial conditions more accommodative. The Committee will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings as appropriate.

To help support conditions in mortgage markets, the Committee will now reinvest principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities. In addition, the Committee will maintain its existing policy of rolling over maturing Treasury securities at auction.

The Committee also decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions--including low rates of resource utilization and a subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013.

The Committee discussed the range of policy tools available to promote a stronger economic recovery in a context of price stability. It will continue to assess the economic outlook in light of incoming information and is prepared to employ its tools as appropriate.

ECRI : Risk of a Double Dip for US quite high

noreply@blogger.com (Unknown) — Tue, 20 Sep 2011 12:50:00 +0530

Achuthan, co-founder and chief operations officer of the Economic Cycle Research Institute, says all of his economic indicators point to more sputtering ahead.

"The risk of a new recession is quite high," he says.

If we do have a double-dip recession, Achuthan says, the people who are already having trouble finding work and paying bills are already in a depression and that they "are going to suffer more."

Check Achuthan and the ECRI’s impressive recession calls in recent years here

US fund withdrawals top $75 bn, Highest since lehman collapse

noreply@blogger.com (Unknown) — Tue, 20 Sep 2011 11:27:00 +0530

Investors have pulled more money from US equity funds since the end of April than in the five months after the collapse of Lehman Brothers Holdings, adding to the $2.1-trillion rout in American stocks.

About $75 billion was withdrawn from funds that focus on shares during the past four months, according to data compiled by Bloomberg from the Investment Company Institute, a Washington-based trade group, and EPFR Global, a research firm. Outflows totaled $72.8 billion from October 2008 through February 2009, following Lehman's bankruptcy, the data show

via ET

Italy suffers downgrade

noreply@blogger.com (Unknown) — Tue, 20 Sep 2011 10:22:00 +0530

S&P cuts Italy's sovereign credit ratings by one notch to A/A-1, with a negative outlook., citing "weakening economic growth prospects" for the nation, and political gridlock in Rome.

Obama Unveils Deficit Plan

noreply@blogger.com (Unknown) — Mon, 19 Sep 2011 21:48:00 +0530

President Barack Obama called for $1.5 trillion in tax increases over the next decade, largely targeting the wealthy, to help trim the deficit, saying U.S. prosperity depends on paying down the federal debt.

In combination with cuts in spending, Obama said, his plan would reduce the long-term deficit by $3 trillion beyond the $1 trillion that was agreed to as part of a deal to raise the U.S. debt ceiling.

Via Bloomberg

Dollar Libor rate Climbs to highest in a year

noreply@blogger.com (Unknown) — Mon, 19 Sep 2011 21:45:00 +0530

The cost to borrow money in dollars remained at the highest level in more than a year on Monday while the rate to borrow euros was little changed. The London interbank offered rate, or Libor, for three-month dollar loans traded at 0.35133%, little changed from Friday and up from 0.34289% a week ago. The three-month Libor rate for euros was little changed at 1.48375%, near the highest since early 2009.

China ready to end dollar peg

noreply@blogger.com (Unknown) — Sun, 7 Mar 2010 13:03:00 +0530

telegraph.co.uk : The head of China’s central bank has given the strongest signal yet that the country will move away from pegging its currency to the dollar, but he said any changes would be gradual.

Full read

Thoughts From Buffet

noreply@blogger.com (Unknown) — Wed, 3 Mar 2010 10:51:00 +0530

Chris Wood : The crisis is going to happen first in Europe, the US will be the endgame.

noreply@blogger.com (Unknown) — Tue, 2 Mar 2010 10:47:00 +0530

Warren Buffet's Annual letter to shareholders

noreply@blogger.com (Unknown) — Mon, 1 Mar 2010 14:02:00 +0530

The Greatest Investor of all time finally speaks,in his annual letter to Berkshire share holders... Read the letter here.

No German rescue plan for debt-ridden Greece says Merkel

noreply@blogger.com (Unknown) — Mon, 1 Mar 2010 13:56:00 +0530

Chancellor Angela Merkel Sunday dismissed talk of a German rescue plan for Greece's ailing economy, as Athens braced for an EU audit that could usher in new austerity cuts to tackle its massive debt crisis.

Greek bond prices rallied this week on a report that Europe's top economy was considering coming to the aid of debt-burdened Greece, as Prime Minister George Papandreou prepares to hold talks with Merkel in Berlin on Friday.

But the German chancellor denied any such plan was in the works, saying "there is absolutely no question of it".

More here

California is a greater risk than Greece, warns JP Morgan chief

noreply@blogger.com (Unknown) — Mon, 1 Mar 2010 13:54:00 +0530

Jamie Dimon, chairman of JP Morgan Chase, has warned American investors should be more worried about the risk of default of the state of California than of Greece's current debt woes.

Read more

Greek PM " Worst Fears Confirmed on Economy "

noreply@blogger.com (Unknown) — Fri, 26 Feb 2010 18:55:00 +0530

Cnbc : Prime Minister George Papandreou on Friday vowed to ignore the political costs and take drastic measures to pull Greece out of a debt crisis threatening the stability of the euro zone.

Speaking to parliament after a visit by EU economic inspectors, Papandreou said Greece did not want other countries to pay for its debts but expected solidarity from its European peers as it struggled with worse than expected fiscal problems.

More here

Concerns grow over China's sale of US bonds

noreply@blogger.com (Unknown) — Fri, 26 Feb 2010 11:06:00 +0530

Evidence is mounting that Chinese sales of US Treasury bonds over recent months are intended as a warning shot to Washington over escalating political disputes rather than being part of a routine portfolio shift as thought at first.

Read here

George Soros on China

noreply@blogger.com (Unknown) — Thu, 25 Feb 2010 18:22:00 +0530

A hard landing for Chinese markets could come, Soros said, due to a significant increase in supply offset by falling demand. China's regulatory authorities have managed the situation well thus far, he said, but he's concerned about how various countries are maneuvering in the face of global imbalances.

Looking back at the past year's responses to the global financial crisis, Soros says lending by Chinese government-owned banks was indeed excessive, but that regulatory decisions to adjust reserve ratio requirements were appropriate.

Full article

Ben Bernanke's testimony to the US Congress

noreply@blogger.com (Unknown) — Thu, 25 Feb 2010 12:48:00 +0530

Read here:

http://www.federalreserve.gov/newsevents/testimony/bernanke20100224a.htm

The world economy has no easy way out of the mire

noreply@blogger.com (Unknown) — Thu, 25 Feb 2010 12:35:00 +0530

By Martin Wolf , Ft.com : Anybody who looks carefully at the world economy will recognise that a degree of monetary and fiscal stimulus unprecedented in peacetime is all that is prodding it along, not only in high-income countries, but also in big emerging ones. The conventional wisdom is that it will also be possible to manage a smooth exit. Nothing seems less likely. So let us consider the endgame, instead.

Fed chief Bernanke: U.S. economic recovery not yet self-sustaining

noreply@blogger.com (Unknown) — Wed, 24 Feb 2010 20:46:00 +0530

(MarketWatch) : Federal Reserve Board Chairman Ben Bernanke told lawmakers on Wednesday that the economic recovery is not yet on a sustainable path, and that near-zero interest rates are still needed. Strong growth in the latter half of 2009 was fueled by temporary factors, Bernanke told members of the House Financial Services Committee. "A sustained recovery will depend on continued growth in private sector final demand," Bernanke said. There are some positive signs on the outlook, but the job market remains "quite weak," said the Fed chairman. The Federal Funds rate is likely to remain low for an "extended period," he said

US New Home Sales Tumble to Record Lows

noreply@blogger.com (Unknown) — Wed, 24 Feb 2010 20:41:00 +0530

cnbc : Sales of newly built U.S. single-family homes unexpectedly fell to a record low in January, according to government data on Wednesday that hinted at potential trouble for the fragile housing market recovery.

More here

Jim Rogers : UK will lose AAA credit rating, not buying Indian Equity

noreply@blogger.com (Unknown) — Wed, 24 Feb 2010 20:29:00 +0530

Do you think that the UK is going to lose its AAA credit rating this year?

Of course. How can they maintain the credit rating other than fixing the books, or something. The UK has staggering amounts of debt that it has taken on in the past few years.

What is your view on Indian equities? Do you still like Sri Lanka and China better?

I am not buying either China or Sri Lanka at the moment. I am not buying equities anywhere at the moment because there had been such big run ups and cheers all over the world that I am just sitting and watching.

Read Full Interview here