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ECB Weber: ECB In State Of Heightened Alterness (sic, or !)

Edited on Wed Jun-25-08 04:15 PM by Ghost Dog Wed, Jun 25 2008, 15:38 GMT FRANKFURT -(Dow Jones)- The European Central Bank is "in a state of heightened alertness" in light of strong upside risks to price stability, Axel Weber, a member of the ECB's governing council, said Wednesday. "Financial markets should by now have understood our readiness to act. It is our strong determination to secure a firm anchoring of medium- and long-term inflation expectations in line with price stability," Weber said, according to the text of a speech. The ECB currently faces record-high inflation rates in the euro zone. Inflation in the area accelerated to 3.7% on the year in May from 3.3% in April. By comparison, the ECB aims to anchor inflation at just below 2.0% over the medium term. /... http://www.fxstreet.com/news/forex-news/article.aspx?St... ---------- 2008-06-25 13:13:38 Norway central bank hikes interest rates to 5.75 percent from 5.50 percent OSLO (Thomson Financial) - Norges Bank, the Norwegian central bank, said it has decided to hike interest rates by 25 basis points to 5.75 percent, in a move that contradicts economist expectations. 2008-06-25 13:02:43 1-Polish c.bank raises rates by 25 basis points raised interest rates by 25 basis points on Wednesday, in line with market expectations, because inflation remains well above the bank's target. 2008-06-25 12:49:31 Dutch central bank's Wellink says inflation to top 3 percent in Q3 AMSTERDAM (Thomson Financial) - Dutch central bank chief Nout Wellink said Wednesday he expects inflation in the Netherlands to be above 3 percent in the third quarter of the year. 2008-06-25 12:42:31 BoE's Gieve says the worst is still to come for UK economy LONDON (Thomson Financial) - Bank of England outgoing deputy governor John Gieve said on Wednesday he believes the worst is still to come for the UK economy. 2008-06-25 12:37:09 Trichet says ECB has not said it envisages series of rate hikes BRUSSELS (Thomson Financial) - European Central Bank (ECB) President Jean-Claude Trichet said while the ECB may raise interest rates at its July 3 council meeting, it has not said that it envisages a series of rate hikes. /... http://www.fxstreet.com/news/forex-news/article.aspx?St...

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Ghost Dog (1000+ posts)

Wed Jun-25-08 04:18 PM Response to Original message

64. -Japan May exports rise as Asia offsets U.S. slump

Edited on Wed Jun-25-08 04:19 PM by Ghost Dog TOKYO, June 25 (Reuters) - Japan's annual export growth beat expectations in May as shipments to Asia and other developing countries helped delay the impact of a U.S. slowdown on global demand. Exports to the United States fell for a ninth consecutive, month and the data showed ripples spreading across the Atlantic. Exports to the European Union, which had been holding up, recorded their first annual drop in 2-½ years. /... http://www.reuters.com/article/marketsNews/idINT2577832... TOKYO, June 25 (Reuters) - Japan's trade surplus in May fell a smaller-than-expected 7.6 percent from a year earlier to 365.6 billion yen ($3.39 billion), Ministry of Finance data showed on Wednesday. That compared with economists' median forecast for a 74.7 percent fall in the surplus to 40.0 billion yen. /... http://www.reuters.com/article/marketsNews/idINTKF00322...

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Ghost Dog (1000+ posts)

Wed Jun-25-08 06:28 PM Response to Original message

65. Fed Keeps Rate at 2%, Ending Most Aggressive Easing Since 1980s

June 25 (Bloomberg) -- The Federal Reserve left its benchmark interest rate at 2 percent, ending the most aggressive series of rate cuts in two decades, as higher energy costs threaten to boost inflation. ``The Committee expects inflation to moderate later this year and next year,'' the Federal Open Market Committee said in a statement today in Washington. ``However, in light of the continued increases in the prices of energy and some other commodities and the elevated state of some indicators of inflation expectations, uncertainty about the inflation outlook remains high.'' /... http://www.bloomberg.com/apps/news?pid=20601068&sid=abQ... U.S. Federal Open Market Committee June 25 Statement: Text June 25 (Bloomberg) -- The following is the full text of the statement released today by the Federal Reserve: The Federal Open Market Committee decided today to keep its target for the federal funds rate at 2 percent. Recent information indicates that overall economic activity continues to expand, partly reflecting some firming in household spending. However, labor markets have softened further and financial markets remain under considerable stress. Tight credit conditions, the ongoing housing contraction, and the rise in energy prices are likely to weigh on economic growth over the next few quarters. The committee expects inflation to moderate later this year and next year. However, in light of the continued increases in the prices of energy and some other commodities and the elevated state of some indicators of inflation expectations, uncertainty about the inflation outlook remains high. The substantial easing of monetary policy to date, combined with ongoing measures to foster market liquidity, should help to promote moderate growth over time. Although downside risks to growth remain, they appear to have diminished somewhat, and the upside risks to inflation and inflation expectations have increased. The Committee will continue to monitor economic and financial developments and will act as needed to promote sustainable economic growth and price stability. Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; Sandra Pianalto; Charles I. Plosser, Gary H. Stern; and Kevin M. Warsh. Voting against was Richard W. Fisher, who preferred an increase in the target for the federal funds rate at this meeting. /. http://www.bloomberg.com/apps/news?pid=20601068&sid=aSD...

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Ghost Dog (1000+ posts)

Wed Jun-25-08 06:37 PM Response to Reply #65

66. Dollar Falls Versus Euro as Fed Says Inflation Will Moderate

Edited on Wed Jun-25-08 06:52 PM by Ghost Dog June 25 (Bloomberg) -- The dollar dropped against the euro after the Federal Reserve held interest rates steady, ending the most aggressive series of rates cuts in two decades. ... The dollar fell 0.1 percent to $1.5589 per euro at 2:17 p.m. in New York, from $1.5568 yesterday. It traded at 108.22 yen, compared with 107.82. Japan's currency traded at 168.80 per euro, compared with 167.85. The U.S. currency has dropped 12 percent against the euro since Sept. 18, when the Fed made the first of seven reductions in the target lending rate. The dollar touched $1.6019 per euro on April 22, the weakest level since the European currency made its debut in 1999. The world's biggest financial institutions have incurred $396 billion in asset writedowns and credit losses since the beginning of 2007, including reserves set aside for bad loans. U.S. regional bank stocks are in ``capitulation mode,'' said Merrill Lynch & Co. in a research note on June 20, citing credit market losses, potential dividend cuts and capital raisings. The S&P 500 Regional Banks Index fell to 53.82 on June 19, the lowest since at least 2003. ... The unemployment rate rose in May by a half-percentage point to 5.5 percent, the biggest increase in more than two decades. A measure of consumer confidence in the U.S. dropped this month to a 16-year low, and house prices in 20 cities fell in April by the most on record. /... http://www.bloomberg.com/apps/news?pid=20601083&sid=a_l...

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Ghost Dog (1000+ posts)

Wed Jun-25-08 08:38 PM Response to Reply #66

83. Dollar advances to multi-month high versus most major Latin American currencies (NASDAQ dixit)

Edited on Wed Jun-25-08 09:20 PM by Ghost Dog (RTTNews) - The US dollar advanced to multi-month highs versus the Chilean peso, Peruvian Sol and Colombian peso in New York trading on Wednesday. On the other hand, the greenback showed weakness against Brazilian real and Mexican peso. ... The US dollar advanced against its Chilean counterpart during New York mid-day trading on Wednesday. At about 12:05 pm ET, the dollar-Chilean peso pair surged to a 7-month high of 509.75, compared to yesterday's close of 504.45. Currently, the pair is worth 508.78. During New York afternoon trading today, the US dollar strengthened against the Colombian currency. The dollar climbed to a monthly high of 1787.50 by about 12:45 pm ET against the peso, compared to yesterday's close of 1750.60. The dollar has been in an upward channel against the peso for the past 7days. As of now, the pair is trading near 1778.50. The dollar, which closed yesterday's New York session at 2.9325 against the Peruvian Nuevo Sol, soared to a new multi-month high of 2.9850 in New York afternoon trading on Friday. The US currency declined against its Brazilian counterpart in New York afternoon deals today. At about 3:25 pm ET, the greenback ticked down to a fresh multi-year low of 1.5910, compared to yesterday's North American close of 1.6040. After moving sideways in New York morning session, the US dollar ticked down against the Mexican peso after the releasing of Fed's rate decision that held interest rate at 2 percent. /... http://www.nasdaq.com/aspxcontent/NewsStory.aspx?cpath=... \ACQRTT200806251624RTTRADERUSEQUITY_0897.htm

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Ghost Dog (1000+ posts)

Wed Jun-25-08 09:15 PM Response to Reply #83

86. Mexican Peso Rises to Five-Year High as Fed Holds Rates Steady

June 25 (Bloomberg) -- Mexico's peso strengthened to a five-year high after the Federal Reserve keep borrowing costs unchanged, maintaining the interest-rate advantage of local fixed-income securities after U.S. government debt. The peso rose 0.2 percent at 10.2673 per dollar at 4:06 p.m. New York time, from 10.2908 yesterday. That's the lowest since June 2003. The currency has appreciated 6.2 percent this year, buoyed by the widening gap between U.S. and Mexican benchmark interest rates. Mexico's central bank increased its benchmark lending rate to 7.75 percent on June 20, saying inflation was ``worrying.'' Mexico's consumer prices rose 0.29 percent in the first half of the month, the central bank said yesterday, causing investors to bet on additional rate increases. /... http://www.bloomberg.com/apps/news?pid=20601083&sid=aM1...

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Ghost Dog (1000+ posts)

Wed Jun-25-08 09:18 PM Response to Reply #83

87. Brazil's Real Closes At Nine-Year High

SAO PAULO (Dow Jones)--The Brazilian real closed at a nine-year high Wednesday on continued inflows by foreign investors. The real closed at BRL1.5908, compared with the Tuesday close of BRL1.6060. Foreign investors are attracted by high Brazilian interest rates. The Selic base rate is currently 12.25%. In its quarterly inflation report, published earlier Wednesday, the Brazilian central bank hinted at more interest rate hikes to come because of worries about inflation. These worries were underscored Wednesday by the release of official inflation figures for the 12 months through mid-June, showing inflation at 5.89%. Meanwhile, investors liked the news that the Federal Reserve's Federal Open Market Committee had voted Wednesday to hold the U.S. Fed Funds rate steady at 2%. The combination of low U.S. interest rates and high Brazilian rates should help keep Brazilian markets attractive for foreign investors, according to analysts. /... http://www.fxstreet.com/news/forex-news/article.aspx?St...

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Ghost Dog (1000+ posts)

Wed Jun-25-08 09:26 PM Response to Reply #83

88. Canada's Dollar Gains as Fed Leaves Borrowing Costs Unchanged

June 25 (Bloomberg) -- Canada's dollar rose for a third day after the U.S. Federal Reserve left its benchmark interest rate at 2 percent, ending a series of seven cuts since September. A change in U.S. monetary policy will reduce pressure on the Bank of Canada to cut its borrowing costs as the U.S. consumes about 80 percent of the nation's exports. Canada's central bank before June 10 had cut interest rates at every meeting since December to shield the economy from the U.S.-led slowdown. The Canadian currency has traded near parity with its U.S. counterpart this year. ``The concern for inflation is certainly there,'' said Stewart Hall, market strategist at HSBC Securities Canada in Toronto. ``To break the Canadian dollar out of that range, you have to get a sense there was some sense of urgency.'' /... http://www.bloomberg.com/apps/news?pid=20601083&sid=aN....

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Ghost Dog (1000+ posts)

Wed Jun-25-08 09:08 PM Response to Reply #66

85. Indian Rupee gains 23 paise against USD after rate hike

Mumbai, June 25 (UNI) The Rupee today gained 23 paise to close firm at 42.73/74 against the US Dollar on the key rate hike by the Central Bank. The Indian Rupee opened stronger at 42.88/90 per dollar from its previous close of 42.96/97 per dollar and further strengthened on the expectaions that RBI's move to tame inflation will help the economy to sustain comfortable growth, dealers said. The Rupee rose after the RBI raised key interest rates by 50 basis points to tame price pressures, prompting dollar sales by exporters on expectations of a stronger currency, a senior dealer with a leading private bank said. The local unit today traded in a wide range band between 42.73 and 42.90 per dollar in a volatile interbank foreign exchange market and is expected to be near the 42.70 level as reportedly the Central bank was willing to hold Rupee stronger against the greenback. /... http://www.deepikaglobal.com/ENG5_sub.asp?ccode=ENG5&ne...

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Ghost Dog (1000+ posts)

Wed Jun-25-08 09:31 PM Response to Reply #66

90. China May FX reserves hit $1.797 trillion

BEIJING: China’s foreign exchange reserves rose $40.3 billion in May to $1.79696 trillion, a source familiar with the data told Reuters on Wednesday. That marked a slowdown from a record $74.46 billion rise in April, based on data disclosed to Reuters last month. But it was still significantly greater than the nearly $28 billion that flowed into China in May from the trade surplus and foreign direct investment — a strong indication for many economists that speculative capital is still pouring into the country. The source declined to be identified because he was not allowed to speak officially to the media. China’s official foreign exchange reserves have now risen $268.8 billion in the first five months of the year, compared with $461.9 billion in all of 2007. Reserves in May grew by more than the combined inflows from China’s trade surplus and FDI for the fifth month in a row. But Beijing will take heart that unexplained capital inflows, an indicator of hot money, dropped sharply to $12.3 billion in May from $50.2 billion in April. /.. http://www.dailytimes.com.pk/default.asp?page=2008 \06\26\story_26-6-2008_pg5_14

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Ghost Dog (1000+ posts)

Wed Jun-25-08 06:49 PM Response to Reply #65

67. Fed Is Losing Control of Inflation

POSTED: Tuesday, June 24, 2008 FROM BLOG: Contrarian Profits - Stock marketing investing news and opinion from a contrarian perspective. Insights about value investing, commodities, gold, oil, energy, China, the Fed, inflation, deflation, and global markets. Bill Bonner in The Daily Reckoning takes on the Fed's big dilemma. How can the it simultaneously fight inflation and deflation of asset prices? Whatever the feds do, you can be sure it's going to involve a lot of doublespeak. According to AP, they are "looking for a new message to keep inflation expectations in check, without having to boost interest rates." It's to be a "finely tuned message" to "ward off inflation," says AP. We thought raising interest was the best way to do that. Then again, so did ex-Fed chief Paul Volcker, and look what happened to him. Brown Brothers Harriman economist Marc Chandler, quoted in BusinessWeek, says it's the third paragraph of the Fed's post-meeting statement that's the one to look out for. The third paragraph will deal directly with the Fed's assessment of the inflation risk... Here the wording is likely to stiffen a bit to reflect that commodity prices have continued to rise and that inflation expectations appear to be creeping higher. The FOMC will likely signal not just that it will "continue to monitor inflation developments carefully," as it said in March and April, but will likely indicate that it is on heightened alert or something in that vein. More from Bill Bonner. He says the Fed is "fighting a mighty war against deflation... and losing." Surging inflation all over the world is putting pressure on the Fed to raise rates. But raising rates in an economy with rising employment and falling house prices could be disastrous. On the other hand, not raising rates could provoke a disaster of its own. It could cause the dollar to collapse as prices soar. On Friday, the Dow fell 220 points. Gold held steady at $903. Oil rose $2 to $135. Here at The Daily Reckoning headquarters our "Crash Alert" flag has been up so long it's almost in tatters. Even we don't bother to look up any more. We know what to do – keep our money in cash...in gold...in Japan...and, lately, in emerging markets. But the best place for you money over the last year has been energy. Energy stocks on the S&P are up about 20%. The worst place for your money has been the financial sector, which is down about 36%. The banking index, BKX, was at 110 last year. Now, it's below 65, down about 40%. The Fed is fighting a mighty war against deflation... and losing. Its cheap money and credit no longer seem to help its buddies on Wall Street or the little guy out on the prairies or down in the bayous. Instead, the money drives up consumer prices...and ends up in the hands of the energy exporters – Russia, Venezuela, and the Gulf. The Financial Times reports that there are 15 times as many houses for sale than there are buyers looking for them. And now, it appears that the very temporary boost given to the U.S. economy by the tax rebates is fizzling out. Look out below... But you rarely get what you expect from the financial markets; instead, you get what you deserve. Wall Street is getting what it deserves. The hotshots made fortunes by loading up the whole country with debt. Finally, they're taking some losses. ... /... http://www.reuters.com/article/blogBurst/investing?type...

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RUMMYisFROSTED (1000+ posts)

Wed Jun-25-08 06:57 PM Response to Reply #67

68. 12-15%

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Dr.Phool (1000+ posts)

Wed Jun-25-08 07:23 PM Response to Reply #67

71. "A finely tuned message to ward off inflation".

And if the incantations don't work, we'll string garlic around the windows, and if that doesn't work, we'll turn them into toads. Or did they already try that on Bear Stearns.

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