All Posts Tagged With: "ECB"
Another ECB Rate Hike Will Kill the Dollar
Throughout the world consumers and investors are taking a beating, says Bill Bonner.
In some countries soaring inflation is eroding consumer purchasing power. In others tumbling asset prices are destroying investor wealth. In most both are happening at once.
It’s a major headache for central banks. Bill says the Fed should follow the ECB in hiking rates, even if it means an economic slump…
Fed and ECB Target Different Flations
Editor’s Note: The Fed and the ECB have taken up opposing positions in the current economic battle, says Mike Burnick. Bernanke & Co have chosen to protect economic growth from the threat of tumbling asset prices. In Brussels, the priority is controlling inflation. This is bad for the dollar, says Mike, which will drive commodity prices higher still. There is no pain-free solution, he adds.
The Fed’s Policy Is Firmly Guided By Fantasy
Editor’s Note: There is nothing the US Treasury can do to prevent further losses for the dollar, says Peter D. Schiff, not when the Fed’s policy on inflation is firmly guided by fantasy.
ECB Meeting Should Add to Euro Strength
Editor’s Note: Profit taking by traders is the only thing slowing the dollar’s slide against the euro at the moment, says The Daily Reckoning’s Chuck Butler. He sees the euro heading back towards 1.60 in the coming days. With the market likely to have already priced in an ECB rate hike this week, it will be Governor Trichet’s comments that count most for currency traders…
ECB’s Tough Stance on Inflation Hurts European Stocks
European stocks were gutted yesterday (Thursday) as banks took heavy losses in the face of more hawkish inflation comments from European Central Bank (ECB) President Jean-Claude Trichet that put pressure on already struggling financials.
The Dow Jones Stoxx 600 closed down 2.6% to 288.48, the worst finish for the Eurozone index since October 2005.
The FTSEurofirst 300 had a 2.5% drop, to close at 1,197.02 points, its largest one-day percentage drop since mid-March, Reuters reported.
Global Banks Warn of ‘Panic’ and ‘Catastrophe’
If you don’t already read Agora Financial’s 5 Min. Forecast, you should definitely check it out.
Friday’s forecast was stern stuff. It pulled together two extremely dire warning from separate banks…
“A very nasty period is soon to be upon us — be prepared,” reads the latest release from the Royal Bank of Scotland. Its hotshot credit analyst Bob Janjuah predicted a 22% crash for the S&P 500 by September…
A ‘New Wave’ of the Credit Crisis Threatens Banks
A “new wave” of the credit crisis is now battering banks and lenders that steered clear of toxic subprime-related loans, says The Washington Post.
Late payments on home-equity loans are at a record high, and delinquency rates on loans for cars, small businesses and construction are at levels not seen in a decade or more — all bad news for lenders, regardless of their subprime exposure.
Of course, the bad news isn’t limited to the financial sector. Mike Burnick in the Offshore A-Letter warns of that a triple whammy of deflation, inflation, stagflation is also threatening the global economy…
Dollar Hits the Skids
In the currency market, the dollar sank against the euro. Late Friday, the euro was trading at $1.5622 vs. $1.5503 on Thursday.
Eurozone Inflation Highest for 16 Years
Eurozone inflation measured 3.7% year-on-year in May, the highest rate for 16 years, reports Bloomberg. This increases the likelihood of an interest rate hike by the ECB in July, putting more downward pressure on the US dollar.
Money Morning’s William Patalon III discusses how rising inflation is dominating the news on both sides of the Atlantic:
Undoubtedly, a universal theme is emerging at the Fed and other world central banks: Inflation, Inflation, Inflation.
Investors Will Watch as Inflation Dominates the Spotlight This Week
Investors better keep an eye on bonds this week.While the stock market may be more fun to follow, fixed income is often a stronger gauge of investor expectations of the economy, future U.S. Federal Reserve policy, and inflation.
Latest News
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