Gartman: Gold Price Will Keep Rising Nov 18, 2009
With no end to the dollar's slide in sight, gold prices are continuing to rise, with central banks even buying more gold instead of the dollar, the world's traditional reserve currency. Low interest rates in the United States coupled with wide deficits are keeping the greenback weak. (Newsmax)
Dollar Woes Are Good News for Europe's Markets Nov 18, 2009
Central banks are starting to reconsider how much of their reserves they want to keep in dollars, particularly as the Federal Reserve keeps minting more of them. India, for example, just bought $6. (Bloomberg -- Columnists)
Yellow metal sizzles to Rs 17,000 Nov 18, 2009
There are lot of people who believe the current easy money policies of most central banks would lead to inflationary situations. So these people are also betting on gold. (India Times, India)
Mauritius becomes latest nation to buy gold Nov 18, 2009
In spite of the small size of the transaction announced on Tuesday, it confirms the fresh appetite for gold among central banks fearful about a long-term decline in the value of the US dollar, the worlds main reserve currency. EDITORS CHOICE. (FT.com -- Markets)
Waiting for thetrain wreck Nov 18, 2009
The opportunity for the world's central banks to change policy and affect the economic outcome has been lost. The world economy is now locked on to an undeviating track towards another train wreck. (Asia Times Online)
Wonk Watch 11.16.09 Nov 17, 2009
Carney spreads the blame around, calling out the government, central banks, and investors. But Ritholtz especially takes note of the lightweight requirements on commercial mortgage-backed securities and the rising volume of smaller regional banks involved in riskier [commercial real estate] activities. (Slate)
IMF Chief: Dollar In No Serious Risk Nov 17, 2009
Monday, November 16, 2009. SIGN UP FOR FREE NEWS ALERTS. (Newsmax)
UK MPs seek to veto EU financial reforms Nov 17, 2009
"These considerations have to be taken into account if central banks are to lend against very broad asset classes.". No comments yet. (Business Report, South Africa)
Buck doesn't stop here: Bernanke Nov 17, 2009
Central banks are worried their own currencies are getting too high in relation to the sinking dollar, making their exports and internal financing costs rise ... Central banks are worried their own currencies are getting too high in relation to the sinking dollar, making their exports and internal financing costs rise. (New York Post -- Business)
Gold's rally have some targeting $US1300 Nov 16, 2009
Investors of all levels, from retail investors to central banks, are really diversifying their portfolios,'' said Toby Hassall, an analyst with CWA Global Markets Pty Ltd. in Sydney. Newcrest Mining Ltd., Australia's biggest gold producer, advanced 1. (Sydney Morning Herald -- Business)
ECB's Noyer: Price Stability Should Remain Main Goal Nov 16, 2009
TOKYO (Reuters) - ECB governing council member Christian Noyer said on Monday that he didn't believe monetary policy played a central role in causing the global financial crisis, and that price stability should remain the main objective of central banks ... "It should be made clear, in particular, that, whatever the new tasks and functions of central banks, price stability should remain the primary objective of monetary policy," said Noyer, who is also the governor of the Bank of France ...... (ABC News -- Wire)
Bank of England's Tucker Says Riskier Banks May Need Higher Insurance Levy Nov 16, 2009
Central banks may need to act as market makers of last resort when liquidity dries up in a crisis in order to protect the flow of credit in the economy, Tucker said. While the Bank of England may already be performing this role through its corporate bond purchases, its not central to its remit and must always be subordinate to monetary policy, he said. (Bloomberg -- UK)
China Calls for Responsible Global Monetary Policies Nov 16, 2009
Countries whose currencies are held as reserves by global central banks are failing to take sufficient account of the global repercussions of their domestic policy stances, Assistant Finance Minister Zhu Guangyao told a financial forum. "We call upon major reserve-issuing countries to take responsible monetary policies," Zhu, who was speaking in English, said. (ABC News -- Wire)
Gold Hits Another Record, Asia Shares Rise Nov 16, 2009
Gold, which has gained 10 percent in the past 2 and weeks, was also boosted by comments from investment fund BlackRock, a manager and adviser to the U.S. Federal Reserve, that gold would rise further and central banks would be net buyers of gold this year. "The most recent break-out in the gold price in U.S. dollars has caused most gold prices to start trending higher at the same time," Evy Hambro, who runs two BlackRock commodities funds that are among the world's largest commodities funds,... (ABC News -- Wire)
Noyer Says World's Central Banks Successful in Containing Financial Crisis Nov 16, 2009
Noyer Says Central Banks Active in Containing Crisis (Update1) - Bloomberg ... Noyer Says Central Banks Active in Containing Crisis (Update1) ... Central banks have been very active over the last two years in containing the impact of the financial crisis, Noyer told a conference in Tokyo today. (Bloomberg -- Germany)
Apec leaders vow to fight protectionism Nov 16, 2009
Asian central banks have accelerated dollar purchases this year to stem gains in their currencies that made their exports less competitive than China's. Indonesia's rupiah has jumped 11 percent against the yuan in the past six months, South Korea's won 9. (Business Report, South Africa)
Bankers' deals could be 'torn up' Nov 15, 2009
A spokesman said: "The real issue that they have not addressed is that the tri-partite system of banking regulation has failed and we need to put the Bank of England in charge of regulation. "There is a growing international consensus that it is right to have central banks in charge of regulation. " 'Living wills'In a podcast on the Downing Street website Prime Minister Gordon Brown promised a "transformation" of the way the financial sector was policed. Mr Brown also said Britain had a "bright... (BBC News -- UK)
Obama can't avoid stubborn yuan as dollar swamps Asia Nov 15, 2009
In meetings at the Asia Pacific Economic Co-operation (Apec) summit in Singapore and then in Beijing, Obama will probably discuss China's fixed-rate policy, which has prompted central banks in India, South Korea, Thailand and Taiwan to accelerate dollar purchases to curb currency appreciation. "It's just outrageous, the impact on their neighbours and on relatively poor countries," said Simon Johnson, the chief economist at the International Monetary Fund in 2007 and 2008 and a senior fellow at... (Business Report, South Africa)
Sinking dollar overwhelms central banks in Brazil, Korea and Russia Nov 15, 2009
The governments are amassing record foreign-exchange reserves as they direct central banks to buy dollars in an attempt to stem the greenback's slide and keep their currencies from appreciating too fast and making their exports too expensive. Half of the 10-best performers in the currency market this year came from developing markets, gaining at least 14 percent on average, according to data compiled by Bloomberg. (Business Report, South Africa)
Yuan as world currency can be good for India Nov 15, 2009
In addition, since December 2008 China has undertaken currency swaps estimated at $95 billion with central banks in South Korea, Malaysia, Belarus, Indonesia, Argentina and Hong Kong. This would enable importers to make payments in yuan for Chinese goods without going through the usual dollar route. (India Times)
Bank Negara to support private sector growth Nov 14, 2009
Central banks look for orderly market conditions and we do not like excessive movements in a short period of time. Our business sector has shown that it can work with different levels of exchange rate, she said. (The Star Online, Malaysia)
Gold gains as greenback loses appeal Nov 14, 2009
Inflation expectations are rising, central banks are increasingly looking favorably on the metal and there are signs of improving demand, Barclays said in the report ... Gold may extend gains next week on speculation that investors and central banks will buy the metal as an alternative to the slumping dollar, according to 18 of 19 traders and analysts surveyed by Bloomberg News ... Emerging-market central banks and investor purchases will support prices, according to the report. (Sydney Morning Herald -- Business)
Guiding Currency-Exchange Rates Amounts to Protectionism, APEC Lobby Says Nov 14, 2009
U.S. President , who is due to attend a summit of APEC leaders in Singapore this weekend before going on to China and South Korea, may discuss Chinas fixed-rate policy, which has prompted central banks in India, South Korea, Thailand and Taiwan to accelerate dollar purchases to curb currency appreciation. Weak Dollar Problem. (Bloomberg -- Japan)
The rise of emerging markets Nov 14, 2009
With the huge amounts of liquidity injected by global central Banks, Conway sees a bubble forming, in the next one to two years. Nonetheless, he does not see a drop in liquidity, especially when there are already anticipations of a double dip in the market. (The Star Online, Malaysia -- Business)
World Rushes to Prop Up U.S. Dollar Nov 14, 2009
"Quite clearly, all Asian central banks have found it necessary to intervene, and it's costing us," Korn said ... The weak dollar has also fueled speculation that overseas central banks will move to increase their gold holdings as an alternative to the U.S. currency, CNN Money reports. (Newsmax)
* Global recovery faces hurdles next year: World Bank Nov 14, 2009
The World Bank chief said that another little-mentioned risk was the specter of inflation in the Asia-Pacific region after central banks moved to open the tap of liquidity in the face of the crisis. This will be a challenge for the central banks in this region because traditionally their monetary policy has followed the Federal Reserve, he said. (Taipei Times, Taiwan -- World Business)
No country for gold men Nov 14, 2009
My title's awful pun on a recent Hollywood movie (No country for old men, directed by the Coen Brothers in 2007) represents not so much an environment associated with the lack of places for Austrian economists to hide; indeed it is meant to suggest the opposite result, namely that all users of fiat money will eventually lose faith and turn to the one commodity that cannot be mal-adjusted by central banks, namely gold ... I related in last week's article (See Asia Times Online, November 7, 2009)... (Asia Times Online)
Dollar takes a breather Nov 13, 2009
This could further boost demand for the Aussie's in coming months as central banks and investors diversify their investments to reduce cut their holdings of US dollars and protect themselves against inflation. "The Aussie, like gold, is a good hedge against inflation," Barclays said. (Sydney Morning Herald -- Business)
Buttonwood: Paper promises, golden hordes Nov 13, 2009
Central banks and the bullion price ... For bullion bulls, the implication is clear: central banks no longer trust the creditworthiness of other governments ... The next step in this chain of reasoning is to assume a stampede (or at least a quick trot) by other central banks into holding the yellow metal. (The Economist)
Is it too late to get on the gold bandwagon? Nov 13, 2009
Central banks were net sellers of gold. When gold hit $330. (Atlanta Journal-Constitution -- Business)
Dollar Decline Too Powerful for Brazil, Korea as Currency Reserves Mount Nov 13, 2009
Nov. 13 (Bloomberg) -- Brazil, South Korea, Russia and other developing nations are fighting a losing battle to mute gains in their currencies as a falling dollar and economic recovery create more demand for their assets than central banks can handle ... Governments are amassing record foreign-exchange reserves as they direct central banks to buy dollars in an attempt to stem the greenbacks slide and keep their currencies from appreciating too fast and making their exports too expensive. (Bloomberg -- Latin America)
Currency tensions flare ahead of APEC Nov 13, 2009
"If more intervention is needed, Asian central banks will act accordingly.". In a statement, the APEC finance ministers pledged to pursue "market-oriented exchange rates". (Sydney Morning Herald -- Business)
Who Wants Gold Most? Central Banks Nov 13, 2009
Central banks represent a major factor behind golds rise to record highs, and they are likely to continue boosting the precious metal. The central banks will probably end the year as net buyers of gold for the first time in two decades, according to The Wall Street Journal ... Experts tell The Journal that Asian and Mideast central banks could be the next buyers, including The Peoples Bank of China. (Newsmax)
Eco recovery faces hurdles in '10: WB Nov 13, 2009
"The question mark for everybody is whether the private sector will kick in by the middle of 2010 and that's part of an issue of confidence." The World Bank chief said that another little-mentioned risk was the spectre of inflation in the Asia-Pacific region after central banks moved to "open the tap of liquidity" in the face of the crisis. "This will be a challenge for the central banks in this region because traditionally their monetary policy has followed the Federal Reserve," he said ...... (India Times)
Hu Says China to Boost Domestic Demand, Doesn't Address Yuan Currency Peg Nov 13, 2009
Asian central banks this year have increased their holdings of U.S. dollar assets, including Treasuries. While of Treasuries rose 10 percent this year, increased 16 percent and those in the rest of Asia grew 25 percent, according to Bloomberg data. (Bloomberg -- Asia)
Barrick, Goldcorp May Target Smaller Miners as Supplies Fall, Prices Climb Nov 13, 2009
Gold wont fall below $1,000 an ounce again as central banks print money to help fund budget deficits, , publisher of the Gloom, Boom & Doom report, said at a conference yesterday in London. The metal is headed for the ninth straight annual gain as demand for a store of value other than the greenback led investors to increase holdings of gold coins and exchange-traded funds backed by bullion. (Bloomberg -- Canada)
Australian jobs surge; jobless rate at 5.8 percent Nov 12, 2009
Markets across Asia rose in early trading following another gain overnight on Wall Street and news that South Korea left its key interest rate at a record low, signaling that most Asian central banks are in no hurry to raise borrowing costs as their economies recovery ... The markets rose in early trading following another gain overnight on Wall Street and news that South Korea left its key interest rate at a record low, signaling that most Asian central banks are in no hurry to raise borrowing... (Fresno Bee -- Business)
Asian Markets Slip as Rally Peters Out Nov 12, 2009
The markets rose in early trading following another gain overnight on Wall Street and news that South Korea left its key interest rate at a record low, signaling that most Asian central banks are in no hurry to raise borrowing costs. Australia also reported an unexpected surge in the number of jobs last month. (ABC News -- Wire)
Awaiting next bubble's burst Nov 12, 2009
5 percent last quarter - many see it as another bubble being inflated by cheap money from the Federal Reserve and other central banks ... Other central banks tried similar tactics. (San Francisco Chronicle -- Business)
KLCI down in early trade Nov 12, 2009
In the region, however, Asian stocks rose for a fifth day led by banks and automakers on speculation that central banks would support the economic recovery by keeping borrowing costs down, according to Bloomberg. Excess liquidity supported by low interest rates should be an encouraging factor for the stock market, said Mitsushige Akino, who oversees the equivalent of US$450mil in assets in Tokyo-based Ichiyoshi Investment Management Co.. (The Star Online, Malaysia)
Obama Meets Asian Bankers Who May Call His Loan Nov 12, 2009
We can wait until the dollar collapses and Asian central banks rush for the exits ... Then again, so could signs Asian central banks are increasingly buying real assets, such as gold or other commodities ... Perhaps Asian central banks could talk with the IMF about creating some kind of currency-reserve sales rights managed through the lender. (Bloomberg -- Columnists)
Asian stocks rise on rates optimism Nov 12, 2009
Asian stocks rose for a fifth day, led by banks and carmakers, on speculation central banks will support the economic recovery by keeping borrowing costs down. Mitsubishi UFJ Financial Group, Japan's largest bank by market value, gained 1. (Sydney Morning Herald -- Business)
Global Confidence Drops as Central Banks Begin to Exit Emergency Stimulus Nov 12, 2009
Nov. 12 (Bloomberg) -- Confidence in the world economy dipped in November as central banks actions to withdraw some emergency measures sparked concern about the strength of the recovery, a Bloomberg survey of users on six continents showed ... The survey follows steps by central banks including the Federal Reserve to start unwinding stimulus, seeking to avoid market distortions that may spur bubbles in assets from stocks and commodities to real estate. (Bloomberg -- Asia)
Dollar Falls to 15-Month Low Dollar drops to 15-month low even as Geithner reiterates strong dollar stance. Nov 12, 2009
"The momentum and the conviction that the Fed will not raise rates any time soon, coupled with the fact that the major central banks continue to provide liquidity liberally" means the "fundamental force" weighing on the dollar will persist, said Brown Brothers Harriman analyst Marc Chandler in a research note Wednesday. Federal Reserve officials speaking late Tuesday noted that the economic recovery is likely to be weak and reiterated that the central bank will keep rates low. (ABC News -- Business)
Monetary policy: Leaders and laggards Nov 12, 2009
Central banks pick different paths back to normality. CENTRAL banks in the rich world cut interest rates in lockstep in 2008 as the world economy spiralled ... Such forbearance is the rule among central banks, not the exception. (The Economist)
Stocks Fall as Profit Outlook Casts Doubt on Recovery; Drugmakers Decline Nov 12, 2009
Nov. 12 (Bloomberg) -- Japanese stocks fell, sending the Topix index to a five-week low, as losses at and overshadowed signals that central banks around the world will keep borrowing costs low to spur economic growth. Ebara, a pumpmaker, plunged 9. (Bloomberg -- Japan)
Cross my palm with euros? Nov 12, 2009
Other alternatives include precautionary lines of credit, such as the American Federal Reserve s with the central banks of Brazil and Mexico, or the IMF s flexible credit line. But what are the alternatives to relying on the dollar. (The Economist)
Gold Advances to Record as Investors Seek Haven From Weakening Dollar Nov 12, 2009
Nov. 12 (Bloomberg) -- Gold futures advanced to a record, rising for a ninth consecutive day in the best winning run since 1982, on speculation that central banks and investors will step up purchases as the dollar extends a slump ... Central banks are all the same ... Analysts at Bank of America Merrill Lynch, Societe Generale SA and Barclays Capital have forecast further purchases by central banks, already the biggest holders. (Bloomberg -- UK)
Analyst: Another global recession likely in 2010 Nov 11, 2009
Edwards, a prominent equities bear and a long-term critic of the policies of Western central banks, is sceptical of popular opinion that extreme policy responses will safeguard the West against a repeat of Japans lost decade of the 1990s. People should question the happy clappy nonsense from sellside analysts, London-based Edwards, a global strategist with SocGens Corporate tment Banking group, told a media briefing. (The Star Online, Malaysia -- Business)
'Need to cooperate on easy policy exit' Nov 11, 2009
SINGAPORE: World Bank President Robert Zoellick said on Wednesday the world needed a cooperative approach to exit from easy fiscal and monetary policies and the timing for Asian central banks would depend on markets. Speaking to reporters at the Singapore Foreign Correspondents Association, Zoellick also said there was some pressure on China to strengthen the yuan currency. (India Times)
Yuan can be alternative reserve currency in future Nov 11, 2009
6 billion U.S. dollars) with central banks in the Republic of Korea, Malaysia, Belarus, Indonesia and Argentina and the monetary authorities of Hong Kong. These swap accords allow other overseas central banks to sell yuan to local importers who want to buy Chinese goods. (Xinhuanet, China)
World Bank says asset bubbles an emerging problem for the region Nov 11, 2009
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Investor Demand for Gold Soars Nov 11, 2009
Its a structural shift were seeing on the investing side, from Asian central banks right down to individual investors buying ingots and coins. . (Newsmax)
APEC finance ministers meeting opens Nov 11, 2009
As several central banks have already raised their interest rates, the world's eyes have turned to the question as when the fiscal exit strategies will be rolled out on a large scale. High-level officials attending the meeting agreed, "the pace of implementing exit strategies should take into account different stages in the economic recovery of member economies, the type of policy measures to be phased out, and any spillovers caused by our strategies," according to a draft statement seen by... (Xinhuanet, China)
Gold gets extra shine on weak dollar Nov 10, 2009
Bullion buying by the Indian government also stoked speculation that other central banks may follow suit. These developments have helped to sustain the price momentum. (India Times)
Blowing Bubbles Nov 10, 2009
Writing in The Financial Times, he warned that the Federal Reserve and other government central banks are fueling a massive new asset "bubble" that -- while not in imminent danger of bursting -- will someday do so with calamitous consequences. Here's Roubini's argument. (The American Conservative)
Marts jump on pump Nov 10, 2009
"The central banks are continuing to prop up the economy and support risk-taking," said Jack Ablin, chief investment officer at Harris Private Bank ... "The central banks are continuing to prop up the economy and support risk-taking," said Jack Ablin, chief investment officer at Harris Private Bank. (New York Post -- News)
Hedge Funds Are Ready for New Boom in Start-Ups Nov 10, 2009
Third, the determination of central banks to reignite the global economy by flooding the markets with printed money is creating asset bubbles everywhere. They are popping up so fast, and so obviously, even former Federal Reserve Chairman could spot them. (Bloomberg -- Columnists)
Asia stocks, currencies rise Nov 10, 2009
HONG KONG: Asian stocks rose on Tuesday after US equities hit a 13-month high, while central banks intervened to curb Asian currencies as funds flowed into riskier assets on expectations economic stimulus measures will continue ... Central banks, including in South Korea, the Philippines and Thailand were spotted stepping in to rein in currency appreciation, traders said ... Asian stocks rose after US equities hit a 13-month high, while central banks intervened to curb Asian currencies. (India Times)
Gold Rises to Record as Falling Dollar Spurs Investors to Boost Holdings Nov 10, 2009
It cited moves by some central banks to hedge against declines in currencies including the dollar, euro and yen. Currencies from the 10 largest industrial economies are suffering from a credibility problem, which makes a move toward hard assets like gold more likely, the bank said. (Bloomberg -- Canada)
Weak dollar pushes gold above $1,100 an ounce Nov 10, 2009
Some central banks are buying gold for their reserves ... "It says to individual investors that if it's OK for central banks to buy gold, shouldn't we be buying also?". (USA Today -- Money)
SocGen's Top Analyst Sees Market Lows Next Year Nov 10, 2009
Edwards, one of the leading equities bears and a long-term critic of the policies of Western central banks, is skeptical of popular opinion that extreme policy response will safeguard the West against a repeat of Japan's lost decade of the 1990's. Edwards said he expected that at some point China would go into recession, calling people's excessive faith in growth stories a "sick joke.". (ABC News -- Wire)
Stock Rally Just Getting Started in History of Period Preceding Rate Rises Nov 10, 2009
Nov. 9 (Bloomberg) -- around the world are falling at the fastest rate since the worst of the credit on speculation central banks will start raising rates, a signal that triggered the biggest over the past three decades ... Shares rise before central banks push up interest rates because markets anticipate economic expansion first, says , Federateds Pittsburgh-based equity strategist ... If central banks were to tighten, it would starve off the oxygen, said Nangle. (Bloomberg -- Canada)
* Asian nations bear brunt of dollars prolonged slide Nov 10, 2009
Facing a loss of competitiveness against Chinas exporters, several central banks in the region X mainly in Southeast Asia X have bought US dollars in recent weeks to curb their currencies ascent, traders say ... Central banks in Asia and Latin America are worried about dollar weakness and are aggressively intervening to stop excessive currency appreciation, Roubini wrote. (Taipei Times, Taiwan -- World)
Shares jump on G20 pledge Nov 10, 2009
"Central banks around the world are continuing to prop up the economy and support risk taking. There's very little regard for valuation," said Jack Ablin at Harris Private Bank. "It looks to me like a pure risk rally and it is consistent with the G20 comments.". (BBC News -- Business)
