Major economies have less debt to refinance this year
2 January 2013
The Group of Seven nations, combined with Brazil, India, China and
Russia, will have $220 billion less debt that requires refinancing in
2013. The decrease comes as bond markets rally in all major economies
for the first time since 2008.
ECB maintains vow that bond buying comes with conditions
27 December 2012
European Central Bank Governing Council member Luc Coene said Thursday that it will maintain its bond-buying conditions. The ECB will only buy possibly limitless amounts of bonds if a member nation applies to the eurozone bailout fund.
BRIC countries face uncertain growth without reforms
26 December 2012
A decade of high growth for the BRIC countries -- Brazil, Russia, India and China -- is over as average gross domestic product growth is forecast to slip to 4.5% in 2012 from an annual average of 8% from 2000 to 2008. Each country faces particular challenges in modernizing to boost growth rates going forward. Russia must address corruption to attract investment and Brazil has to simplify regulations.
Japanese yen falls to lowest value of 2012 against U.S. dollar
25 December 2012
The decline of Japan's yen against the U.S. dollar accelerated after the release of Bank of Japan minutes showed support among the central bank's policymakers for driving down the value of Japan's currency. The yen fell to its lowest value against the dollar this year.
"Fiscal cliff" is becoming less of a worry for global investors
4 December 2012
Optimism that U.S. officials will avoid the "fiscal cliff" prompted investors to increase equity overweight positions to a 20-month high in November in Europe and the U.S., according to a Reuters poll. "All eyes are now on the fiscal cliff, where a muddling-through until the end of [the first quarter] can be expected," said Boris Willems of UBS Global Asset Management.
EU transaction tax moves forward without U.K. input
3 December 2012
The EU is proceeding with a plan for a financial-transaction tax despite objections from the U.K., which wants wording changes to the proposal. The European Parliament and all EU nations must approve the measure before 11 interested countries can proceed.
IMF conditionally allows capital controls
3 December 2012
The International Monetary Fund has withdrawn its objection, in certain situations, to nations' imposition of capital controls. "Capital flows can have important benefits for individual countries across the fund membership and the global economy. ... [They] also carry risks, however, as they can be volatile and large relative to the size of domestic markets," according to an IMF report.
German and U.K. officials delve into Libor issues
28 November 2012
A German banking regulator told lawmakers that banks more than likely manipulated the London Interbank Offered Rate. At a hearing, parliamentarians also questioned Deutsche Bank officials about rate rigging. Meanwhile, U.K. officials are seeking feedback on a plan to restructure Libor. Among changes proposed are legal authority applied to the way the rate is set and criminal penalties for manipulation. Separately, Barclays dismissed five employees and disciplined eight others after an internal investigation of Libor rigging.
OECD warns about Europe as it cuts growth forecasts
27 November 2012
The Organization for Economic Cooperation and Development lowered its forecasts for global economic growth, noting that the eurozone debt crisis is the greatest threat. "The U.S. fiscal cliff is a very important source of concern, but the greatest downside risk remains the eurozone," Chief Economist Pier Carlo Padoan said. The OECD says that if leaders fail to resolve the debt crisis, central banks must be prepared for more monetary easing.