NEW YORK (Reuters) – A steady flow of cash into emerging markets could become a flood as the Bank of Japan’s huge stimulus program may prompt the nation’s investors to chase higher returns – but for some developing countries that could be too much of a good thing.
The fear is that a big fresh influx of foreign money could overheat those markets, triggering higher prices and pushing currencies higher, which would make a country’s exports more expensive while pulling in cheaper imports that could hit domestic producers. The money may also disappear as fast as it arrived if returns became better elsewhere.
NEW YORK (Reuters) – The euro headed on Wednesday for its biggest daily decline against the dollar in nearly a year, weakened by talk of a euro zone interest rate cut, while signs of economic malaise in Britain and Canada added to the U.S. currency’s appeal.
The yen also slipped against the dollar, with officials at a weekend Group of 20 meeting not expected to scold Japan for a monetary policy that has led to a sharp slide in the currency.
NEW YORK (Reuters) – Global growth is likely to remain tepid this year and central banks should keep their easy monetary policy in place, the head of the International Monetary Fund said on Wednesday.
“Thanks to the actions of policymakers, the economic world no longer looks quite as dangerous as it did six months ago,” IMF Managing Director Christine Lagarde told the Economic Club of New York.
NEW YORK, April 9 (Reuters) – The release of the Federal
Reserve’s policy meeting minutes, usually a fairly staid affair,
was anything but in January and February, thanks to spirited
debate about when and how to end the central bank’s stimulus
That debate undoubtedly continued at the central bank’s
March 19-20 meeting, but minutes due on Wednesday may not
provoke the kind of market fireworks they did at the start of
2013, when long-dated Treasury yields soared to nine-month
NEW YORK, April 3 (Reuters) – Plans to tighten oversight of
foreign banks in the United States are crucial for financial
security and pose no threat to global banking reform, the
Federal Reserve’s point person on financial regulation said on
Speaking on CNBC-TV, Fed Governor Daniel Tarullo defended a
plan to require all foreign banks to group subsidiaries under a
holding company, subject to the same capital standards as U.S.
holding companies. The biggest banks would also need to hold
NEW YORK/BEIJING (Reuters) – Strong demand at home boosted activity at Chinese factories last month, but U.S. manufacturing hit an unexpected speed bump after expanding rapidly in February, weakened by a slower pace of new orders.
Other surveys released on Monday showed manufacturing sectors in South Korea and Japan growing as exports increased, while Brazil faced sharply slower output and rapidly rising prices, suggesting a manufacturing recovery remained tenuous.
LONDON/NEW YORK, March 21 (Reuters) – Economic malaise in
the euro zone deepened in March even before another member
country ran into debt trouble, but manufacturing in the United
States and China improved, surveys showed on Thursday.
Solid growth in the United States and China, the world’s
largest economies, will be important for overall global growth,
particularly as the 17-country euro zone continues to struggle.
The 1994 bond market massacre is remembered with horror by those who lived through it. Yields on 30-year Treasuries jumped some 200 basis points in the first nine months of the year, hammering investors and financial firms, not to mention thrusting Mexico into crisis and bankrupting Orange County.
The accepted story is that an over-eager Federal Reserve set off the carnage by raising interest rates too soon – the sort of premature move that current Fed Chairman Ben Bernanke has suggested, again and again, that he is not going to make.
FRANKFURT, March 15 (Reuters) – Private equity firm EQT and
sovereign wealth fund GIC are set to forge ahead in their
efforts to offload Springer Science+Business Media,
seeking buyers while also preparing a flotation as an
alternative, several people close to the process told Reuters.
Sources had told Reuters last year that EQT and GIC were
seeking a buyer who they hoped would pay as much as 4 billion
euros ($5.2 billion) for the German speciality publisher of
scientific journals, but they have so far not made any notable
NEW YORK, March 15 (Reuters) – Foreigners boosted purchases
of U.S. government bonds in January and cut back on U.S.
equities after two months of strong inflows, U.S. Treasury data
showed on Friday.
Demand for Treasuries was driven entirely by official
buyers, including central banks, who snapped up $53.1 billion.
That was the largest inflow in at least three years.