- What Can Warren Buffett Teach Us About Cyprus?
March 26 2013 3:26 PM
Warren Buffett has offered a lot of timeless wisdom to investors over the years. Considering the recent turmoil in Cyprus, now is a good time to review a fellow named Mr. Market. The Oracle of Omaha and chief executive officer of Berkshire Hathaway (NYSE:BRKA) (NYSE:BRKB) makes regular appearances on television, but his annual letters to shareholders still provide the biggest bang for your buck. In the 1987 letter, Buffett introduces readers to Mr. Market, a character that came into Buffett’s life from his teacher and the father of value investing, Benjamin Graham. Mr. Market is the mental attitude towards market fluctuations. He is reliable in the sense that he appears daily to provide market quotations. However, his mood is anything but reliable.
- Euro Drops As Relief From Cyprus Deal Turns To Fear
March 26 2013 7:53 AM
The euro retreated on Monday evening after rumors circulated that Cyprus' bailout deal could set a precedent for future eurozone aid packages. The common currency dropped to 1.2876 on Tuesday morning at 7:00 GMT.
- Bernanke Defends Expansionary Monetary Policy
March 25 2013 4:31 PM
“The topic of this session is lessons learned from the financial crisis,” said Chairman of the Federal Reserve Ben Bernanke at the beginning of a speech he delivered on Monday at the London School of Economics. “For me, perhaps the central insight is that the recent crisis, despite its many exotic features, was in fact a classic financial panic–a systemwide run of ‘hot money’ away from assets whose values suddenly became uncertain.”
- Cypriot Bailout Deal Could Be Too Little Too Late
March 25 2013 8:02 AM
The euro rebounded on Monday and traded at 1.3005 at 9:33 GMT after eurozone officials reached a last minute deal on Cyprus bailout terms. Last week, the common currency was under heavy pressure as many speculated that Cyprus would exit the euro after the tiny island nation rejected the initial terms of its bailout.
- EU Gives Cyprus an Ultimatum: Raise Funds or Banks Will Fail
March 22 2013 8:18 AM
The euro hovered just above $1.28 on Friday morning after data showed that the region continued to slide in March and Cyprus' problems worsened. The New York Times reported that the index of purchasing managers by Markit Economics showed the eurozone was on a steady downward decline.
- ECB Sets Ticking Clock For Cyprus Bailout
March 21 2013 3:19 PM
The Mediterranean island nation of Cyprus has until Monday, March 25, to agree to European Central Bank and International Monetary Fund bailout conditions, or its illiquid banks will be cut off from emergency funding. If the funding is cut, economists expect the country’s top banks to collapse. Aside from the obvious economic catastrophe this would cause Cyprus, the event would shock the euro zone’s already fragile economy and could negatively impact global markets.
- Eurozone Growth Slows in March
March 21 2013 1:31 PM
Eurozone growth continued to slow in March raising fears of a prolonged, deepening recession and raising calls for the European Central Bank to act quickly to prop up the fledgling European economy. Markit Economics reported that both the service sectors and manufacturing sectors in France, Germany, and the broader eurozone slowed in March.
- Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZD
March 21 2013 1:15 PM
USD weakened as concerns over Cyprus eased - JPY strengthened against the USD after the inauguration of new BoJ Deputy Governors yesterday - Commodity currencies strengthened after better data from CAD and NZD
- Is volatility returning to markets?
March 21 2013 1:01 PM
Obviously the Vix is low. The world stock markets are all rallying till recently. This all in spite of a currency war in Asia, the EU in constant turmoil, war in the Mid-East getting ready to escalate, the economies of everyone is shambles. What is wrong with this picture?
- 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.