Sterling

Bank of England chews over negative interest rate plan - CityAM Sterling has steady following its recent rapid decline, though the cable is currently unable to break the psychological 1.50 level The unemployment rate has remained steady at 5.4 per cent in February as the Australian economy added 71,500 jobs, the biggest monthly gain in 12 years -SMH Bank of England's Bailey warns that UK banks need more capital, this idea is controversial as some believe higher capital…

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IndexTrader Magazine, includes some comments that Joe Bond (VP of Trading) made regarding the recent move in Sterling. A link to the full PDF edition can be found here: http://www.index-trader.co.uk/wp-content/uploads/backissues/IndexTraderMarch2013.pdf This link is hosted on an external website (Index-Trader Magazine) and Abshire-Smith cannot be held responsible for its contents.…

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NIESR released their forecast for UK growth yesterday afternoon, for the 3 months to February of -0.1%, signalling the likelihood of a triple-dip recession. Worryingly their report details that they expect “output to pass its peak in early 2008 until 2015.” FTSE 100 closed at a new 5-year high as investors shrugged of concerns following poor UK macro data Sterling strengthened throughout the US and Asian sessions, after trading at 2 and half year lows in recent days…

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China's February non-manufacturing PMI like manufacturing, slowed to a 5-month low of 54.5 versus 56.2 in January, reinforcing the view that the recovery in the world’s second largest economy remains modest Bernanke said that premature rate increases would carry a high risk of short-circuiting the recovery The North/South house price split in the UK: According to the latest Hometrack survey, more than three-quarters of postal areas registering price gains are in London…

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European Central Bank President Mario Draghi signaled the bank has no intention of tightening monetary policy anytime soon with inflation projected to “significantly” undershoot its 2 percent target next year - Bloomberg Royal Bank of Scotland (RBS) has reported its fifth annual loss since it was rescued by the government in 2008. Pre-tax loss of £5.16bn includes past conduct charges of £1.1bn for PPI settlements, £700m for interest rate swaps and a £…

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Deputy Governor of the Bank of England Paul Tucker, appearing before the Treasury select committee yesterday mentioned the radical idea of negative interest rates. It seemed more of an idea, rather than the groundwork for future policy, but it highlighted the bank does have other options left to help the economy. The idea is based upon the notion, that banks are currently parking considerable sums on deposit with the central bank for safety, rather than lending to individuals and businesses.…

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There has been speculation for some time that the UK, would lose its coveted AAA credit rating, as the coalition struggles to meet its fiscal targets and growth continues in a “zig zag” fashion as coined by Mervyn King. The downgrade is an embarrassment to the Chancellor George Osborne, as he had said that keeping the top credit rating would be a measure of his and the coalition’s term. This is the first downgrade in the 25 years that Moody’s has been rating debt. Ana…

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Brussels turn up pressure on Libor - Financial Times The UK’s OBR said that faster tax growth or lower than forecast public spending will be required for the government to meet its deficit forecast The BoE has a case for restarting its QE, and may need to increase it by up to £175bn if the economy is running substantially below capacity -Daily Telegraph WTI Crude rebounds; set for biggest weekly drop Since December –Bloomberg This morning upbeat comm…

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Bank of England: MINUTES OF THE MONETARY POLICY COMMITTEE MEETING 6 AND 7 FEBRUARY 2013 Full Bank of England PDF: http://www.bankofengland.co.uk/publications/minutes/Documents/mpc/pdf/2013/mpc1302.pdf This link is to an external website (www.bankofengland.co.uk) and Abshire-Smith cannot be held responsible for its contents.…

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HSBC Global Head of FX Research David Bloom calling forUSDJPYat 75 over the next couple of years –Reuters Sterling hits seven-month low on dollar - CityAM European proposals to curb bank bonuses will lead to higher salaries and a less stable financial system, Britain has argued, in a last ditch attempt to water-down rules that threaten the City - Daily Telegraph A few members of the Bank of Japan's policy board thought the BOJ could extend the remaining life of Ja…

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M&A seems to have sprung to life, as Warren Buffett’s Berkshire Hathaway and 3G Capital agreed to buy Heinz for $28bn, which is one of the food industry’s largest acquisitions SAC Capital Advisors, the hedge-fund is seeking to stem investor outflow, amid legal and regulatory scrutiny -WSJ Commerzbank loses $954 million in Q4 RBA’s Kent Says Chinese Demand for Commodities to Remain Strong -Bloomberg The Treasury has put billions of pounds of taxpa…

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Halifax house prices show that UK property market registered its first annual rise since October 2010 Business Secretary Vince Cable has said that the part nationalised Royal Bank of Scotland, should have been fully nationalised to avoid its current state of limbo Fitch confirmed Holland’s AAA rating but revised its outlook to negative Cameron will not accept a deal on the EU budget at this week's summit in Brussels unless it freezes or cuts European spending -Gua…

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Chinese HSBC services PMI which rose to a four-month high of 54.0 from 51.7 in December RBA minutes which saw the bank leave rates unchanged at 3.00% S&P credit rating agency faces lawsuit over ratings - Telegraph Hedge Funds are taking large short positions for UK retailers, in a bet that further high street chains will collapse - CityAM SGX in talks over taking a stake in LCH.Clearnet - Financial Times Ford expect to spend $5bn this year shoring up its pen…

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S&P affirmed Belgium's AA rating with negative outlook Pimco boss says EU exit threatens UK “standard of living” - Daily Telegraph The Eurozones biggest economies would raise an estimated €30-40bn from their planned “Tobin Tax” - Financial Times Amazon shares climb to new highs on earnings update FTSE 100 closed above 6300 yesterday for the first time since May 2008 CB's Fall in Assets Risks Rise in the Euro- WSJ Ge…

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