Last week we were surprised to see a 25 basis point rate cut by Australia – whose inflation and unemployment levels are in a healthy range – so to now see that even China has cut interest rates, well, that’s telling you something significant about the weakness and risks facing global growth.
First Rate Cut Since [...]
Heads of the Federal Reserves of Atlanta, St. Louis and San Francisco this week have all expressed agreement on the fact that more stimulus – aka monetary accomodation - is needed for the US economy. John Williams (San Francisco), Dennis Lockhart (Atlanta) and James Bullard (St. Louis) – all voting members of the FOMC (Federal [...]
Will Eurobonds be the solution to the European fiscal mess? There’s so much debt out there already, can more European debt really be the answer?
Nevertheless, the “Eurobond” is what Italian Prime Minister Mario Monti has proposed as a way out of the European debt situation. Perhaps a Eurobond offering would calm global markets over European [...]
This week, three more Canadian banks report on their second quarter earnings. While we see only average profit growth (due to less volume growth and tighter margins), capital gains are higher than expected.
Scotiabank’s Q2 Report
Bank of Nova Scotia (TSX: BNS) reports on Tuesday and is expected to give an estimate of $1.15 in earnings per [...]
Slowly but surely, the reserve currency status of the United States dollar is transitioning into a lesser role, at least for China. As early as June, the AP reports, the Yen and Yuan will begin direct trading without the use of the USD as a “cross-currency” intermediary. This means that the USD will no longer [...]