- Euro Ticks Up On Hopes of A New Cyprus Deal
March 21 2013 8:09 AM
The euro gained on Thursday morning as investors found security in a statement from the European Central Bank, which claimed the bank was willing to fund Cyprus' banks within certain limits. The currency rose to 1.2944 at 6:31 GMT on Thursday while eurozone officials continued to negotiate terms of the deal.
- Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZD
March 20 2013 1:08 PM
USD pulled back gains on renewed confidence in Europe ahead of the FOMC meeting. JPY weakened further against the USD and stabilizing above the 95 level. Commodity currencies rebounded as the market pulls away from safer assets
- Cyprus Rejects Bailout Terms and Turns to Russia for Help
March 20 2013 8:19 AM
The euro edged upward to $1.29 on Wednesday morning after Cypriot leaders turned down the European Union's bailout terms and began talks with Russia to secure financing on past loans. Cyprus' vote is the first time any nation has rejected EU conditions for aid. Within the past three years, Greece, Ireland, Portugal, Spain and Italy all gritted their teeth and imposed painful and often unpopular austerity measures in order to access the EU funds.
- Equity Bubble is Based on Unsustainable Earnings
March 19 2013 12:20 PM
The most pervasive question on Wall Street these days is if the Dow Jones Industrial Average, which is at a record level in nominal terms, reflects strong corporate profits and an improving economy; or simply has been achieved by the manipulations of the Federal Reserve. For me, this is sophomoric question to ask because, in reality, there can be no separating what the Fed has been able to achieve for the economy through its artificial measures and the effect it has had on corporate earnings.
- Cypriot President Says Levy Isn't Likely to be Passed
March 19 2013 8:36 AM
The euro continued to slide on Tuesday morning as Cypriot lawmakers prepared to vote on a new controversial tax amendment that would help fund the nation's debt by raising 5.8 billion euros through a levy on banks that would force account holders to shoulder the debt. The meeting has been delayed twice already as Cypriot President Nicos Anastasiades tries to garner support from fellow lawmakers. According to Bloomberg, Anastasiades warned German Chancellor Angela Merkel that his colleagues were not likely to pass the levy. The possibility of the plan's rejection has created a stir among investors as many worry that the euro could drop even lower.
- Will Euro Zone Reforms Be Stymied By High Unemployment?
March 18 2013 1:46 PM
Standard & Poor’s had some harsh words for Europe on Monday. “The high unemployment in Spain, Italy and France is socially explosive,” Torsten Hinrichs, the head of Standard & Poor’s Ratings Services’ German unit, told the newspaper Neue Osnabrücker Zeitung.
- Weekly Summary on USD, EUR, JPY, GBP, AUD, CAD and RMB
March 18 2013 1:32 PM
The US dollar is stronger against most major currencies as market fears rise over future impacts of a Cyprus bailout and bank levy. Domestically, US homebuilder sentiment slipped in March, falling to the lowest level in five months as supply chain concerns and rising costs dented enthusiasm. The NAHB Housing Market index fell to 44 from 46 in February, missing expectations for a gain to 47. It was the lowest level since October 2012. Homebuilder sentiment climbed strongly through the second half of 2012 as the housing sector improved, though the index has now pulled back for two months in a row. Even with March's decline, it is 16 points higher than it was a year ago. Still, it remains below the 50 level which indicates more builders view market conditions as poor vs. favorable. The index has not been above 50 since April 2006. This week, investors are looking to data releases from US chain store sales, building permits, housing starts and the Redbook Index of large US merchandise retailers. Generally, the market is broadly risk-off and global investors are fleeing to the safe-haven dollar as fresh fears over a Eurozone crisis takes center stage.
- Mohamed El-Erian Says Cyprus Not A Huge Issue For US Markets
March 18 2013 10:46 AM
PIMCO’s Mohamed El-Erian appeared on SquawkBox Monday morning and gave some insight on the situation in Cyprus and the world markets as a whole. Here are some highlights:
- Cyprus Deal Adds to Mounting Eurozone Concern
March 18 2013 8:28 AM
The euro fell below $1.30 to a three month low on Monday morning. The common currency tumbled after news that eurozone leaders agreed on a bailout plan for Cyprus which imposes a levy on banks within the island. The package, worth 10 billion euros, is essential to keep Cyprus from defaulting on loans; however the terms of the aid package have many economists worried.
- Cyprus Banking Money Grab: Greece, Italy, France, Spain, Next?
March 18 2013 8:02 AM
The Eurozone finance ministers have signaled their intentions as their latest idea to bailout Cyprus included savers having to surrender up to 9.9% of their deposits in return for a $13 billion bailout.
- Cypriot Bailout Hangs Over the Euro
March 15 2013 7:52 AM
The euro traded steadily at $1.30 as eurozone finance ministers met in Brussles to discuss Cyprus' bailout terms. The tiny island nation's debt has created a great deal of doubt for the region, but the terms of its deal are expected to be nearly completed and announced following the summit. The bailout amount is uncertain, although there have been estimates of up to 17 billion euros. A total that high would match the nation's annual economic output and has many speculating that it cannot sustain that amount of debt.
- Uncertain Cyprus Bailout Drags Euro Below $1.30
March 14 2013 8:20 AM
The euro slid below $1.30 on Thursday morning ahead of the EU summit in Brussels on Friday. Eurozone leaders are expected to discuss the terms of Cyprus' bailout, something that has been hanging over the euro for weeks. Ahead of the meeting, analysts expect the tiny island nation to request nearly 17 billion euros, a sum that matches its annual economic output. According to Reuters, officials said Cyprus could use a levy on deposits to raise money and reduce the size of its bailout sum.
- Will The Yuan Rule The World?
March 14 2013 6:15 AM
As China moves up the economic pecking order, it's trying to promote the yuan as an alternative to the U.S. dollar.
- Will the U.S. Deficit Finally Fall Below $1 Trillion?
March 13 2013 4:08 PM
Washington’s series of economic dramas — predominantly the fiscal cliff and sequestration day — have put government spending under the microscope of both political and economic analysts. With the United States Treasury Department releasing its budget for February on Wednesday, the government has given them additional information to mull over and use to formulate a new assessment on the health of the nation.
- Weidmann Criticizes ECB Risks
March 13 2013 8:25 AM
The euro traded steadily at $1.3056 at 8:00 GMT on Wednesday morning despite an interview with Bundesbank chief Jens Weidmann which shook investor confidence in the eurozone. Weidmann reported that the German central bank was setting aside almost 7 billion euros because of the European Central Bank's risky decisions in 2012, namely the still unused bond buying plan.
- Fed's Bubbles Will Slaughter Middle Class
March 12 2013 10:33 AM
When central bankers dedicate their existence to re-inflating asset bubbles, it shouldn't at all be a surprise to investors that they eventually achieve success. Ben Bernanke has aggressively attempted to prop up the real estate and equity markets since 2008. His efforts to increase the broader money supply and create inflation have finally supported home prices, sent the Dow Jones Industrial average to a record nominal high and propelled the bond bubble to dizzying heights.
- Economic Data Puts Eurozone Recovery on Germany's Shoulders
March 12 2013 8:46 AM
The euro remained at $1.30 on Tuesday morning, after gains from hopeful German data were mitigated by poor figures from the rest of the bloc. The Wall Street Journal reported that the Organization of Economic Cooperation and Development showed that in January the Germany had improved in several areas that indicate economic growth for the future.
- World inflation into stock markets, and economic Armageddon
March 11 2013 5:30 PM
This should be ‘New Economic Paradigm – sort of, inflation into stock markets’ but that seems too long. Pushing inflation into stock markets is nothing new really. When money starts devaluing, stocks rise. So we have the worst offenders by order (roughly)
- Is the Euro Zone Economy Showing Signs Of Life?
March 11 2013 12:23 PM
The Organization of Economic Cooperation and Development or OECD revealed that the euro zone economy, which is made up of 17 different nations, caught some wind in January, amid depressing and downbeat projections regarding the state of the financial health of the region. Although slight, a pickup in exports from Germany, the zone’s largest economy, helped carry the rest of the bloc. There is a significant disparity among the countries in the zone, but the indicators reported and calculated by the OECD offer cautious optimism to the region which has been devastated by setback after setback in its efforts to recoup from the debt crisis. The indicators rose from 99.6 to 99.7, following another increase back in December. A reading above 100.00 for a leading indicator means economic growth is set to be above the trend rate, which itself varies widely among large economies, The Wall Street Journal reported.
- Italian Uncertainty Becomes Spanish Profit
March 11 2013 9:01 AM
The euro began the week at $1.30 on Monday morning following questionable comments about a possible Italian euro-exit made by a German politician on Thursday night. Rainer Bruderle from the German Free Democrats party made comments suggesting Italy could leave the euro on a talk show last week. His comments came in response to the inconclusive Italian election which showed the country's increasing opposition to the imposed austerity measures.