Category: News Desk

Europe May See 1.1 Trillion Euros of Monetary Boost


Investor enthusiasm cheered European markets after rumors surfaced that the European Central Bank will inject as much as 1.1 trillion euros in the European Union.

The ECB, which will announce its plans today, will spend the money purchasing assets throughout the European Union in an effort to boost the Eurozone. While the ECB has not made an official comment on the rumor, many news outlets have already reported the asset purchases agreed upon by ECB President Mario Draghi and the ECB Executive Board.

Denmark’s Economy Predicted to Grow in 2015


Denmark experienced economic difficulty in 2014 and ended the year with growth falling to .75% from an estimated 1.4% in December. Predictions for 2015 also took a turn, moving to 1.5% from an earlier estimate of 2.0%.

Falling demand is the primary reason for reduced growth.  Danish households and companies were less likely to consume and invest.  Consumption slumped as Danes began paying off debts accumulated in the wake of the burst housing bubble. However, household finances are now beginning to balance out.

U.S. Homebuilders Lose Optimism as Sales Fall


Homebuilders are becoming increasingly pessimistic, as stagnant wages and falling demand from investors is pinching the market.

The National Association of Home Builders saw its builder confidence index fall one point to 57, slightly below expectations, as recent improvements in the housing market cool off. While any number above 50 indicates that the market is still good, the decline also suggests that an acceleration of growth going into 2015 is less likely than previously expected.

Things Set to Fall in Place for the Japanese Economy in 2015


The island nation of Japan is all set for better economic times as cheap oil and zero interest rates empower the economy for a year of growth! This, coupled with the nation’s weak yen, has set the stage for a long-term economic boost. This fiscal year the Japanese government is expecting some real economic growth, the target being around 1.5%. This is, of course, based on the premise that consumer spending will increase and capital investment will expand.

ECB Announcement Expected to Raise Equities, Prevent Deflation


European stocks advanced for three days in a row as of Monday, as more investors expect the European Central Bank to announce a quantitative easing program that will expand the euro base and stop Eurozone deflation.

The Stoxx Europe 50 index rose 0.6% on Monday, while the Dax saw higher gains, rising over 1% at its highest point, although the index retreated slightly in afternoon trading.

Singapore’s Private Banking Firms Circumspect


The recent demand for Singapore-based bonds within an already bloated private banking industry has revealed some major risk factors. Analysts have discovered that up to three out of every 10 notes sold in 2014 had yields upwards of 6 percent. The Halcyon Agri Corporation, a major player in the global rubber industry, recently approached its debt holders requesting for a waiver of interest coverage requirements in an attempt to smoothly slide out of its slump.

U.S. and Europe CPI’s Falling, but Germany Dismisses Deflationary Risks


In an interview with CNBC late last week, Germany Finance Minister Steffen Kampeter dismissed growing concerns at investment banks, think tanks, government agencies, and central banks that deflation has become inevitable in Europe.

“This is not what economists and textbooks describe as a deflation spiral, this is a modest price development,” he said in a statement.

Malaysian Bond Costs Soar


In 2014, Malaysia’s currency dropped to its lowest level against major currencies in over five years. Lower crude oil prices are to blame, resulting in a rapid depletion of its current account surplus. In addition, government data revealed that the value of oil reserves in Southeast Asia’s third-largest economy shriveled to an estimated 121 billion US dollars, low compared to other South East Asian oil exporting countries.

Swiss Currency Cap Abandoned on Fears of a Euro Collapse


The Central Bank of Switzerland has abandoned a cap on the Swiss franc, causing it to soar in value against the euro.

The Swiss franc rose 17.5% against the euro and 15.7% against the US dollar on Thursday after the bank announced it would decouple the currency from the euro, seeing weakness in the European economy and the likelihood in a fall in the euro’s value in the near term.

Retail Sales Plummet as Jobless Claims Unexpectedly Rise


Retail sales fell 0.9% as jobless claims rose to a four-month high.

The Department of Commerce reported Wednesday that retail sales fell 0.9% month-over-month on a seasonally adjusted basis in December, representing a 3.2% year-over-year increase from December 2013, unadjusted for price differences.

Retail trade sales were down even lower, with a 1.1% decline from November, representing a 2.6% year-over-year rise.