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US investors opt to take profits on release of disappointing data and as Bernanke warns that America must curb its budget deficit. Gloomy housing sector data and continued layoffs led to a subdued Wall Street opening as investors played safe with their profits after a succession of session gains. Investors were also reacting to a warning from [...] The US Federal Reserve Board (FED may soon be forced to launch fresh blitz of quantitative, or risk seeing economic recovery snuffed out by the latest surge in long term borrowing costs. Yields on 10 year Treasury bonds have risen relentlessly since March when the Fed first announced its plan to buy $300bn (£188bn) of US [...] Rearguard action by Germans to stave off ‘undesirable option’ dismissed by central bank’s governing council as ECB cuts loans rates to 1%. The European Central Bank is now following the policy first adopted by the Bank of England and America’s Federal Reserve The European Central Bank has cut interest rates a quarter point to a record low [...] Last month the European Central Bank (ECB) surprised the markets by only cutting interest rates by 25 basis points to 1.25%- a record low but when compared against the UK interest rates of 0.5% and against the US of 0-0.25% then comparatively still high in the current global climate. The market wanted to see more [...] The Fed stuck to their guns following the March announcement that they will still purchase a total of up to $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt by the end of the year, as well as $300 billion of Treasury securities by autumn. On the upside the FED [...] It is only a few weeks since quantitative easing programmes were launched on both sides of the Atlantic – but already the effectiveness of the measures is being questioned. That is because the purchase of government bonds by both the US Federal Reserve and the Bank of England is not helping sustain lower yields. And it raises [...] The Federal Reserve shocked the market with a $1.15 trillion boost for the US economy. The funds will be used to buy government debt and to liquidate Fannie Mae and Freddie Mac. The Fed kept interest rates on hold at 0-0.25 % as expected, however the sheer scale of the plans surprised the markets. $300 billion will [...] With a target Fed Funds Rate ( the rate at which The US major Banks are able to borrow overnight Dollars) already at a 0 – 0.25% level, further cuts are nigh on impossible. Attention therefore was firmly fixed on any mention of more innovative easing initiatives and also the mood of the accompanying statement. [...] The Federal Reserve, at their meeting yesterday evening, cut the Federal Funds target rate (the rate at which US Banks can borrow in the overnight) by a massive 75bp to a range of 0% to 0.25% and was additionally very aggressive in the statement that followed. The decision was unanimous amongst the Board, and the [...] looks like an absolute disaster for Stocks, Commodities and just for a change, Sterling. The Senate in the US last night, rejected the $14 billion bail-out plan that would have seen a deferment of the cash crisis at GM and Chrysler much to the dismay of markets that were still operating at the time of the [...] Registered Office in England, 24 Charlton Drive, GL53 8ES, UK- 3506015 • Data Protection Registration Number- PZ5407728
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