Friday, September 12, 2008
fx
`Europe, Japan and Asia can't have strong
growth with the U.S. so weak. The decoupling story is a
mirage.The currency is headed for a third weekly loss as traders
increased bets that the European Central Bank will lower
borrowing costs to support economic growth. The yen was near a
two-year high against the euro on concern that Lehman Brothers
Holdings Inc. may collapse,
The ICE's Dollar Index was at 79.922 after touching 80.375
yesterday, the highest level since September 2007, when the
Federal Reserve began cutting the target lending rate from 5.25
percent to 2 percent to stave off a recession
The global slowdown has dimmed the allure of higher
yields abroad,
Rising speculation that Lehman
Brothers Holdings Inc. may fail is generating less concern among
investors than when Bear Stearns Cos. imploded in March.
he difference between what the U.S.
government and banks pay to borrow in dollars for three months,
the so-called TED spread, rose 11 points the past two weeks to
121 basis points, compared with an increase of 38 basis points
to 160 basis points in the period leading up to Bear's failure.
The ability to tap the Fed for funds means
financial troubles at one investment bank are unlikely to bring
down others.
One of the interesting things about Lehman versus Bear
Stearns is that the world is being much more patient
http://www.bloomberg.com/apps/news?pid=20601083&sid=aQRrb_mC18pw&refer=currency
Bank of England Governor Mervyn King, 60, told lawmakers in
London yesterday it's an ``illusion'' that the government could
rescue the housing market without jeopardizing taxpayers' money
and warned that increases in government spending risk fuelling
inflation expectations.
King, who claimed that he doesn't want to ``take a position''
on what the government should do, still spent much of his
testimony outlining the risks of guaranteeing mortgages
Inflation is already more than double
the Bank of England's 2 percent target
Options Show Euro May Fall to $1.30, Bank of Tokyo's Miki Says
``Oil looks like it may be choppy in the near term in the
active hurricane season and could slow gold's decline
growth with the U.S. so weak. The decoupling story is a
mirage.The currency is headed for a third weekly loss as traders
increased bets that the European Central Bank will lower
borrowing costs to support economic growth. The yen was near a
two-year high against the euro on concern that Lehman Brothers
Holdings Inc. may collapse,
The ICE's Dollar Index was at 79.922 after touching 80.375
yesterday, the highest level since September 2007, when the
Federal Reserve began cutting the target lending rate from 5.25
percent to 2 percent to stave off a recession
The global slowdown has dimmed the allure of higher
yields abroad,
Rising speculation that Lehman
Brothers Holdings Inc. may fail is generating less concern among
investors than when Bear Stearns Cos. imploded in March.
he difference between what the U.S.
government and banks pay to borrow in dollars for three months,
the so-called TED spread, rose 11 points the past two weeks to
121 basis points, compared with an increase of 38 basis points
to 160 basis points in the period leading up to Bear's failure.
The ability to tap the Fed for funds means
financial troubles at one investment bank are unlikely to bring
down others.
One of the interesting things about Lehman versus Bear
Stearns is that the world is being much more patient
http://www.bloomberg.com/apps/news?pid=20601083&sid=aQRrb_mC18pw&refer=currency
Bank of England Governor Mervyn King, 60, told lawmakers in
London yesterday it's an ``illusion'' that the government could
rescue the housing market without jeopardizing taxpayers' money
and warned that increases in government spending risk fuelling
inflation expectations.
King, who claimed that he doesn't want to ``take a position''
on what the government should do, still spent much of his
testimony outlining the risks of guaranteeing mortgages
Inflation is already more than double
the Bank of England's 2 percent target
Options Show Euro May Fall to $1.30, Bank of Tokyo's Miki Says
``Oil looks like it may be choppy in the near term in the
active hurricane season and could slow gold's decline
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