With the world's oldest central bank - Sweden's Riksbank - taking the plunge into negative rates, there have been 19 'eases' by central banks this year, Morgan Stanley warns of "ghosts of the 1930s." With competitive 'easing' stoking fears of international currency wars, The Telegraph notes however that looser monetary policy is not the order of the day everywhere in the world, and herei
OTTAWA — Canada’s economy is increasingly being caught in the tail winds of the downward global spiral, but some of the country’s problems are also homegrown.
The Bank of Canada says low interest policies that it and other central banks have put in place are adding another layer of risk to the already stressed global financial system.
The Canadian central bank says near record level interest rates that have been in place since the 2008-09 recession are taking their toll on insurance companies, pension funds.
Via Saxo Capital Markets, From Ukraine to Gaza, geopolitical risks are weighing heavily on investors’ minds. But there are plenty more out there that may not be getting headlines. US mid-term elections
As The Age reports, widely quoted and much-admired straight-talking strategist at Morgan Stanley, Gerard Minack had been "banging on" about the mounting risks in the global economy well before the GFC hit and laid waste to the world economy and investors' portfolios. ... Minack left Morgan Stanley some 18 months ago with the unsullied reputation of being one of the most bearish – and keenest – observers of financial markets.
OTTAWA — The Bank of Canada may need to start hiking its trendsetting interest rate within the next year and steadily push it to 2.25% by the end of 2015, according to an international think-tank representing the world’s leading economies.
The central bank has kept its policy rate fixed at 1% since September 2010, leading to one of the most stable and favourable borrowing environments in many decades.
It will not come as a surprise to anyone who has spent more than a few cursory minutes reading ZeroHedge over the past few years (back in 2009, then 2010, and most recently here, and here) but the rolling 'beggar thy neighbor' cu
The banks have had a long run of strong profits but the good times are about to become a little less so, according to Ed Clark, chief executive of Toronto-Dominion Bank.
Europe remains in a shambles, the U.S. still hasn’t recovered, while in Canada strong tailwinds such as the housing market have turned into headwinds. But the real challenge, “the underlying issue” is what’s going to happen to interest rates, Mr. Clark told RBC Capital Markets’ annual bank CEO conference in Toronto on Tuesday.
The global economy led by Europe and China continues its downward path. Will the US follow?
First let's take a look at China. Markit reports China Manufacturing PMI Declines 8th Consecutive Month.