Economic News

In the wake of Arsenal’s defeat in the Champions League final this week, coach Arsène Wenger stated: “Confidence is the biggest enemy of every sportsman. It goes so quickly.” // So it is for stock markets. The sell-off on financial markets over the past week has been a reminder of how quick the transition from complacency to fear can be. Suddenly, the markets have switched from a sanguine mood of ...

NEW YORK (Dow Jones) -- Treasury Secretary John Snow said Friday he has complete confidence that the Federal Reserve will keep inflation under control. "Overall growth is strong, and while it's true that headline inflation has picked up, core inflation remains in check," Snow said in prepared remarks to the Bond Market Association. "I have full confidence that Chairman [Ben] Bernanke and the Fe ...

Government bond yields fell over the week amid growing risk aversion among investors. // While inflation concerns remain, particularly for the US, the attraction of government bonds as a safe haven investment has seen prices rally over the week due to increased demand. US Treasuries saw some selling pressure at the shorter end of the yield curve on Friday following a week in which core consumer price inflation came in higher than expected, but the overall pattern for the week was higher prices ...

Wall Street finished the week lower as mixed economic data painted a confusing picture for investors worried about the possibility of interest rate rises. // A commodities sell-off dented the materials and energy sectors, while retail stocks were also in the spotlight as a slew of earnings reports mostly heartened investors. Economic data provided cause for cheer and worry in equal measure in a  ...

The dollar rallied across the board Friday, heading for its first weekly gain against the euro and yen in five, on expectations the interest-rate differential continued to benefit the dollar and as investors booked profits after the market's recent sharp move. Bank of Japan Governor Toshihiko Fukui on Friday dampened expectations of a June rate hike and gave no indication of when rates might ri ...

Indonesia won votes of confidence from ratings agency Moody’s and the International Monetary Fund on Friday even as its currency, the rupiah, completed its worst weekly performance in five years due to a global sell-off by emerging markets investors. // Moody’s on Friday cited Indonesia’s improving public finances as the main reason for a move to raise the country’s sovereign debt rating by one notch to B1 from B2. The IMF meanwhile ended a two-week monitoring mission by endorsing the reform ...

NEW YORK (Dow Jones) - Treasury Secretary John Snow said Friday he has complete confidence that the Federal Reserve will keep inflation under control. In prepared remarks to the Bond Market Association, Snow said the economic expansion remains healthy, in part due to lower tax rates and strong business investment."No one is talking about 'irrational exuberance' today. This is a well-ground dura ...

The dollar climbed to an almost two-week high versus the yen and rallied against other major foreign-exchange counterparts Friday after comments from Bank of Japan Governor Toshihiko Fukui were viewed as less hawkish than expected. The Bank of Japan on Friday kept interest rates unchanged at 0%. Fukui dampened expectations of a June rate hike and gave no indication of when rates might rise. He  ...

By Tom Burroughes LONDON (Reuters) - The government will back a controversial proposal to set up a national savings scheme with the power to make firms contribute next week but details may take longer to emerge, industry commentators said. The pensions issue will come under the political spotlight when the government publishes a policy White Paper on how to raise meagre savings levels and encour ...

By Tom Burroughes LONDON (Reuters) - The government will back a controversial proposal to set up a national savings scheme with the power to make firms contribute next week but details may take longer to emerge, industry commentators said. The pensions issue will come under the political spotlight when the government publishes a policy White Paper on how to raise meagre savings levels and encourage people to work for longer. Last November, the Pension Commission panel of experts hammered out  ...