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Hedge wise and sleep well. Or, as they say in German: Gut gehedged ist halb gewonnen! Silvia Wadhwa gives her take on the single currency.
Merrill Lynch says fund managers it surveyed in December are more pessimistic about corporate profits than they have been in nearly a decade. Seventy-four percent believe we are in a late cycle phase of business expansion while four percent believe the economy has already entered global recession, the firm says.
The dollar rose against the yen on Tuesday as a modest improvement in risk appetite encouraged investors to buy stocks, but it consolidated versus the euro after recent hefty gains.
The dollar rose against the euro Monday, boosted by year-end transactions and speculation of less aggressive Federal Reserve interest rate cuts after last week's strong U.S. inflation numbers.
This could be one of the least controversial EU summits in recent memory. With the Treaty signed in Lisbon Thursday European leaders seem to have very little left to fight about. Indeed, rather than hanging around until 5:30 this evening, when the Brussels summit was due to wrap, they seem ready to head off for the weekend early.
The same banks that demanded market forces be allowed to work in other indutries are now begging central banks for help.
So they have finally done it! European leaders gathered in Lisbon on Thursday to sign the new European Treaty, which it is hoped will streamline the EU's decision making process.
The yen tumbled and high-yielding currencies posted sharp gains as carry trades regained popularity Wednesday after Federal Reserve and other major central banks announced coordinated measures to ease the money market's liquidity crunch.
Several top central banks including the Federal Reserve and the European Central Bank announced plans to address elevated pressures in short-term funding markets.
Wall Street's post Fed selloff could spill into Wednesday morning as the Street continues to debate why the Fed didn't deliver more interest rate relief, particularly when it's becoming increasingly glum on the economy.
"Drat!" you say. "Yawn! Not more morning notes. Not another string with market pearls of wisdom I might have to read."Fear not! I threaten you only with idle thoughts and random contemplations from the other side of the Big Pond (from beyond the Channel even). In other words, from parts of the world where a Hamburger doesn't necessarily come as a snack between two bits of a soggy roll, where a Frankfurter might well eat a wiener, and where cars -- oh, bliss! -- generally have a stick shift and a clutch!It's also from a part of the world -- eat your heart out, friends from the British Isles -- where you can travel from country to country without ever showing your passport and, more to the point, never have to change your money.OK, that also means the land where battalions of politicians argue passionately over the size, color and bending-angle (seriously!) of bananas, about what exactly passes for a standard-size €uro condom and acceptable work practices for a €uro chimney sweep. If that doesn't justify the title of this blog -- €urocentric -- then I don't know what does.
The dollar rose slightly against the euro but fell against the yen on Tuesday after the Federal Reserve cut its benchmark interest rate by a quarter of a percentage point, less than what some had expected.
The two negative market trends are feeding on each other and creating double trouble for US consumers and the economy.
The dollar retreated against most major currencies Monday, reversing some recent strong gains ahead of an expected Federal Reserve interest rate cut this week.
The dollar rose against the yen Friday, as a slightly-above-forecast jobs report eased was seen reducing the chance of an aggressive interest rate cut.
The euro rose against the dollar and the yen on Thursday after the European Central Bank left interest rates on hold but President Jean-Claude Trichet warned of "strong upward pressure" on inflation.
The European Central Bank kept rates on hold at 4 percent as expected on Thursday, bucking a global trend of monetary easing amid increased turmoil in the financial markets.
The Bush Administration's plan to help struggling homeowners avoid foreclosure is the big item on the agenda for Thursday. The plan, already drawing criticism, will be announced by the president in the afternoon and is expected to include a five-year freeze on the resetting of some of the low introductory, teaser rates that drew in many of the weakest borrowers.
The dollar rose to a one-month high against a basket of currencies Wednesday after reports showing robust job growth and productivity gains suggested a milder slowdown in the U.S. economy than many had thought.