Central Banking’s Split Personality Can’t Go On
Central bankers have spent the past five years expanding their balance sheets to unprecedented degrees. Now they have modest (at best) growth, but an enormous monetary base. Some want to do more but others are worried about how hard it will be to normalize policy. Nowhere is this split more apparent than in the Bank of England, although there are signs of the same at the Federal Reserve and even the Bank of Japan. (Read more…) Once again the BOE’s Monetary Policy Committee voted 6-3 against providing more quantitative easing to the economy, with outgoing governor Mervyn King on the losing side.
Canada’s Bond-Dumping Frenzy Escalates as Pensions Unload
Canada’s biggest pension-fund manager will “significantly” cut its C$64 billion ($62.3 billion) allocation to bonds as the fixed-income market’s foothold among its most loyal base of investors grows less certain.
EUR/USD Most Vulnerable Pair Ahead of Bernanke, FOMC Minutes
Most currencies have fallen against the dollar towards the testimony of Ben Bernanke in Washington and the release of the recent FOMC meeting minutes. Some had good reasons to fall and some didn’t have specific ones.
Schaeuble: EU must accelerate fighting youth unemployment
Cutting unemployment decisive for EU legitimacy German bilateral programs compliment EU efforts Schaeuble is speaking in Berlin.
Lehman Brothers Holding raises $1.88 bln selling broker claims
Lehman Brothers Holding Inc, the former investment bank that is working to repay creditors, said on Wednesday it had raised $1.88 billion by selling claims it held against its former brokerage.
Bernanke expected to stay the course on Fed policy
NEW YORK (Reuters) – Federal Reserve Chairman Ben Bernanke is not expected to hint at a pending policy change when he testifies before the U.S. Congress on Wednesday despite some speculation among investors that the central bank could soon reduce its massive bond buying program
Credit rating firms sow doubt on euro zone bond rally
Credit rating firms say they could further downgrade the ratings of highly indebted euro zone countries, putting their bonds at risk of being pitched out of global indexes and reversing a fall in their borrowing costs.
US Existing Home Sales 4.97 within expectations.
The annual level of US existing homes sales was expected to rise to 4.99 million. This is a rise of 0.6%. EUR/USD extends its gains after the publication and breaks above