Economic News

By Krishna Guha in WashingtonPublished: June 15 2006 19:24 | Last updated: June 15 2006 19:24Ben Bernanke, the chairman of the US Federal Reserve, on Thursday eased nerves with a measured assessment of the threat posed by higher energy prices to inflation and growth, as stocks advanced worldwide. // The S&P 500 index, which had already rebounded before his speech on positive reports on jobless claims and manufacturing orders, was up 1.6 per cent at 1251 in late trading. However, bond prices ...

Government bonds across major markets fell on Thursday as investors continued to price in a greater probability of more interest rate rises than previously expected in the US. // Short-dated yields on US Treasuries rose to new highs and Fed funds futures fell further. The August contract implied a more than 50 per cent probability of a quarter-point rate rise at the August 8 meeting in addition to the one fully expected at the Federal Reserve’s meeting this month. Investors also had a raft of  ...

Treasurys tumbled for a second session Thursday, sending yields higher, after a New York manufacturing survey sharply exceeded estimates and initial jobless claims fell to their lowest level since mid-February, adding to the Federal Reserve's case for further interest-rate increases. "The data by and large extended more of the bearish trend in bonds," said Kim Rupert, managing director of globa ...

The dollar was little changed versus major foreign-exchange counterparts Thursday as investors weighed stronger-than-expected manufacturing and labor market reports against weaker capital flows data . The greenback had earlier rallied after data showed factoring activity in the New York area surged unexpectedly in June and initial jobless claims fell to the lowest level since mid-February. It t ...

The European Central Bank sounded a fresh inflation warning on Thursday, issuing forecasts based on new methodology that showed prices rising above its 2 per cent annual target rate until at least early 2009. // The projections, based on the supposed predictive power of money supply measures, highlighted the ECB’s anxieties about inflation trends in the 12-country eurozone. These have led it to i ...

The dollar edged modestly lower versus major foreign-exchange counterparts Thursday after a much weaker-than-expected foreign capital flows report reignited concerns over the U.S. ability to finance its swelling deficits. Capital flows into the U.S. fell sharply to $46.7 billion in April as private investors sold Treasury bonds and notes and bought fewer equities, the Treasury Department said T ...

WASHINGTON -(Dow Jones)- U.S. jobless claims dipped below the 300,000 threshold for the first time in nearly four months during the latest week, suggesting that employment conditions remain favorable despite recent softness in monthly jobs data. Initial jobless claims decreased by 8,000 to a seasonally adjusted 295,000 in the week ending June 10, the Labor Department said Thursday. That's the l ...

LONDON (Reuters) - UK economic growth will pick up in the second half of this year, Chancellor Gordon Brown said on Thursday. "Growth is strenghtening," Brown told parliament. "Growth in the second half will be stronger than in the first half." The British economy grew by 0.6 percent in the first quarter, widely viewed as its long-run potential rate, and is expected by economists to match or exc ...

Peter Gerrard (left) with Steve WoodMANUFACTURERS in the north west have added millions to their bottom line in the past 12 months despite facing unprecedented pressures from global competition, rising energy prices and expensive raw materials. The Manufacturing Advisory Service (MAS), part of the DTI, said firms which had sought its advice had expanded their annual sales by £20m as a result. Oldham-based Money Controls was one firm to benefit. The company, which designs and builds coin, note  ...

This is Money15 June 2006 A PICK-UP in High Street sales was sustained in May with some retailers benefiting from the World Cup effect, official figures showed today. OTHER STORIES Apple in new iPod patent row Standard to cut windfalls 10% Market report: Thursday 09.30 Another brewer bites the dust Supermarkets probe narrowed down THE EDITOR'S PICKS TOP STORY: End of card tran ...