Americans Save More but Earn Less as Rates Fall Nov 21, 2009
As interest rates fall back near zero, there aren't many happy returns ... Interest rates are sinking to near zero for the first time since last year's financial meltdown, dampening spending as Americans earn less on their bank deposits and investment accounts ... The dive in interest rates comes as Americans sock away more money. (ABC News -- Wire)
Want lower credit card interest? Keep spending, Citi says Nov 21, 2009
The rebate could cover some or all of the interest rate hike ... Without giving specifics, said the monthly spending requirements and interest rate hikes will vary depending on the cardholder's credit history ... The change by Citi comes as the industry rushes to adjust to sweeping reforms set to start in February that will limit when, and how much, card issuers can hike interest rates. (USA Today -- Money)
Policymakers stay 'vigilant' despite progress Nov 21, 2009
All that means the Fed will continue to closely monitor economic conditions and is likely to keep its monetary policy stance of low interest rates in place for now, Fisher said. aaron. (Daytona Beach News Journal -- Local)
BoJ upgrades view on economy Nov 21, 2009
The BoJ kept interest rates near zero and said it would maintain very easy monetary conditions. It dropped a more specific pledge to keep interest rates at low levels for some time, a line it inserted into the statement when it announced it would scrap some support for credit markets last month ... The Organisation for Economic Co-operation and Development (OECD) on Thursday urged the BoJ to keep interest rates low and buy more government bonds to help beat deflation. (The Star Online, Malaysia -- Business)
Commit $10 mn for Paulson's fund Nov 21, 2009
Gold has long been popular as a hedge against inflation, which some economists fear is on the verge of rising sharply given extremely low interest rates set by the U.S. Federal Reserve and other central banks. Paulson's prospectus quotes William Poole, the former president of the St. Louis Fed, as saying "We are very vulnerable to an inflation explosion.". (India Times)
Treasury prices fall, yields inch off lows Nov 21, 2009
Interest rates are currently at historical lows of near zero percent, so as the economy improves, it is widely expected rates will rise to combat inflation. That could sharply curtail the value of longer-term bond holdings such as Treasurys. (Orangeburg Times and Democrat, SC)
Property investments the leverage factor Nov 21, 2009
Property investments the leverage factor (The Star Online, Malaysia -- Business)
Rocky Boy lending business in confusing world of complaints Nov 21, 2009
The loans often have annualized interest rates equating from 300 percent to more than 1,000 percent. Typically the cost is from 10 to 25 for every 100 borrowed. (Havre Daily News, MT)
Smaller, local banks looking good Nov 21, 2009
I moved my account to Austin Telco shortly after having a big bank raise my interest rate 4 percent on a loan I had never been late on. I made a decision about the financing of my daughter's college I have grown to regret. (Cedar Park Hill Country News Weekender, TX)
Bond rating helps CP at market Nov 21, 2009
The utility systems revenue bonds came in at 23,950,000 and with such a low interest rate, a premium was created that will produce total proceeds of 24 million, Wegmiller said. Similarly, the general obligation bonds came back at 11,985,000, but should net 12 million. (Cedar Park Hill Country News Weekender, TX)
School board meeting is all about money Nov 21, 2009
And, low interest rates held down investment revenue, coming in $28,000 shy of budgeted. The final audit is going to be presented by the independent audit firm in December. (Lindstrom Chisago County Press, MN)
Real estate agents look for signs of a high-end recovery Nov 21, 2009
Brittle said homes sales have followed interest rates on jumbo mortgages, those for $417,000 or more. Six months ago, jumbo mortgages (interest rates) were a couple of points higher than they are now, he said. (Nashville Business Journal, TN)
Forex reserves rise by $962 mn Nov 21, 2009
Growth and interest rate differentials are causing a renewed surge in capital flows to emerging markets. This has resulted in currencies appreciating, forex reserves rising (in most cases to pre-crisis levels) and some countries imposing controls on capital flows, said Rohini Malkani of Citigroup in a report released on Thursday. (India Times)
MFs keep off T-bills, turn to CPs, CDs for higher returns Nov 21, 2009
The idea to shift investment to short-term papers also stems from the premise that interest rates could go up over the next few months. Till a few months ago, they largely relied on treasury bills, which bear a tenure of 91 days to 181 days, to power their funds, with low interest rates in the system (and low risk appetite) making them the best instruments for investment ... So, they are less susceptible to erosion in case interest rates rise. (India Times)
Show to end in 2011 Nov 21, 2009
Bank and financial institutions ripping off Americans with high fees and interest rates. None who have gone to jail yet. (The Palm Beach Post)
Newsweek: Students increasingly hit by high-interest loans Nov 21, 2009
How some schools got away with charging interest rates of up to 18 percent ... (ITT didn't respond to NEWSWEEK's request for comment, and neither school makes its interest rates public ... That program charges interest rates between federal level and market rate for private loans. (MSNBC -- Business)
Shares slide as mood turns sour Nov 21, 2009
"Despite the unclear short term picture our assessment remains that the trend in shares is likely to remain up as the global recovery feeds into higher profits and as interest rates remain low encouraging investors to further switch from cash into shares," Dr Oliver added. For market data by sector, For the latest currency movements, For share price information. (Sydney Morning Herald -- Business)
Households set to feel debt squeeze Nov 21, 2009
However, the research group noted that rising household debt would become a bigger factor for Australians as interest rates rise. "At this point in time, it is likely that interest rates will rise which means that many Australians may see an increasing share of their disposable income used to service their debts," the report said ... The RBA raised interest rates by in October and November to the current level of 3. (Sydney Morning Herald -- Business)
US Fed officials step up asset bubble-watch Nov 21, 2009
The central bank's monitoring takes on renewed urgency as Chairman Ben S. Bernanke's pledge to keep the benchmark interest rate near zero for ``an extended period'' is helping to fuel a surge in assets ... If there are problems in real- estate markets in Asia, it is not very practical to say you should raise interest rates in the US,'' he said ... Percentages d 00004000 enote the interest rate. (Sydney Morning Herald -- Business)
Dusty thinking settles across wide brown land Nov 21, 2009
Percentages denote the interest rate ... Percentages denote the interest rate. (Sydney Morning Herald -- Business)
Galt plans to help residents with energy-efficient projects Nov 21, 2009
The initial interest rates will be between 6 to 10 percent, but those could be reduced if the city finds extra funding. The interest is also tax-deductible. (Lodi News Sentinel, CA)
Carry trade behind volatile rand - Gordhan Nov 21, 2009
"What is happening at the moment is that interest rates are very low in other parts of the world and there's a lot of cash in the system internationally and that cash is looking for places to invest," he told SAFM radio. "It is that inflow of money - not only in South Africa but elsewhere in the world - which is giving us the volatility we actually have at this point in time," he said. (Business Report, South Africa)
AAFES debt to fund new retail center Nov 21, 2009
95% interest rate is higher than would be the case if the federal government had borrowed the money. This article is for Paid Subscribers ONLY.. (Dallas Business Journal, TX)
Recommendation to drop class rank coming. Nov 21, 2009
The bonds have a low interest rate of. 3 percent for the school to pick up for a total of $234,648. (McKinney Courier-Gazette, TX)
Park Pacific gets $56 million HUD loan Nov 21, 2009
The loan offers borrowers more attractive interest rates and has become one of the few sources of financing available this year for commercial developments as banks put the brakes on lending. Fueled by historic tax credits and renewed interest in downtown living, the conversion of vacant buildings into luxury condos and apartments was in full swing when the Lawrence Group, an architecture and development firm based downtown, bought the building three years ago. (St. Louis Business Journal, MO)
OECD Warns of 'Jobless Recovery' Nov 21, 2009
2 per cent in 2010, "supported by improving financial conditions, an expansionary monetary policy and stronger international growth." But it adds: "The weak fiscal position makes further consolidation necessary; an announcement of concrete and comprehensive consolidation plans upfront would enhance macro-economic stability. Strengthening financial regulation and supervision would also support stability and hinder a build-up of new imbalances at historically low interest rates.". The Bank of... (BusinessWeek)
Senate panel to consider Bernanke nomination Nov 21, 2009
Bernanke fears that runs the risk of injecting Congress into Fed decisions involving interest rate policy. Those decisions must continue to be made without political interference, Bernanke has argued. (MSNBC -- Business)
Credit card Catch-22 Nov 21, 2009
And for months, credit card issuers have been raising interest rates, reducing credit limits, closing accounts and taking other measures in advance of new legislation that goes into effect early next year. Now comes Citibank, which is the bank s rate hikes by of all things meeting a monthly spending requirement, the Associated Press reports. (Atlanta Journal-Constitution -- Business)
Wonk Watch 11.20.09 Nov 21, 2009
The fear is that long-term interest rates may rise, resulting in losses for those doing the carry trade, forcing them out and crashing the Treasury market. But as Krugman says, "The whole problem right now is that the private sector is hurting, its spooked, and its looking for safety...[m]eanwhile, the public sector is sustaining demand with deficit spending... ." Further, he asserts that the relationship between public and private borrowing isnt dangerous because we are facing a... (Slate)
Malaysian Economy Shrinks Less Than Estimated as Asia Recovery Strengthens Nov 21, 2009
Zeti told reporters today that interest rates continue to be supportive of growth ... There may be cause to keep interest rates low for a while as economists including Morgan Stanley Asia Chairman say the global recovery faces risks. (Bloomberg -- Asia)
Bank of Japan Leaves Key Rate at 0.1% as Government Urges Deflation Fight Nov 21, 2009
Nov. 20 (Bloomberg) -- The Bank of Japan kept interest rates near zero and raised its economic assessment even as government pressure for it to fight deflation intensified ... Japans price slump contrasts with the rest of Asia, where low interest rates and fiscal stimulus have heightened the risk of asset bubbles ... 8 trillion yen ($20 billion) may also help to contain long-term interest rates as the government struggles to restrict the budget amid a slump in tax revenue. (Bloomberg -- Japan)
Dollar, Yen Advance as Decline in Stocks Reduces Demand for Higher Yields Nov 21, 2009
The greenback posted its fourth straight weekly loss versus the yen and traded at almost a six-week low on speculation the Federal Reserve will keep interest rates near zero to encourage economic growth ... 9306 per dollar as the decline in stocks encouraged investors to reduce carry trades, in which investors buy higher-yielding assets with amounts borrowed in nations with low interest rates ... The yen wont materially sell off until we see a rise in U.S. interest rates, , London-based... (Bloomberg -- Japan)
The other D-word Nov 21, 2009
On Thursday, the OECD issued a strong injunction to the BoJ to fight deflation by committing to keep interest rates low and implementing quantitative-easing measures until inflation turns firmly positive. Some advocate even more radical steps to reflate the economy, such as charging banks to deposit money at the central bank. (The Economist)
The deficit problem: Dealing with America's fiscal hole Nov 21, 2009
Worries about inflation or default could start to push up interest rates. Eventually, private investment will be crowded out. (The Economist)
Asian Currencies Drop Amid Capital Controls Risk, Led by Indonesian Rupiah Nov 21, 2009
who runs the worlds biggest bond fund at Pacific Investment Management Co., said Nov. 19 the systemic risk of new asset bubbles is rising with the U.S. Federal Reserve maintaining near-zero interest rates. In carry trades, investors obtain funds in countries that have low borrowing costs to buy currencies offering better returns. (Bloomberg -- Asia)
Asia's Stocks Post Biggest Decline in Three Weeks Amid Japan Share Sales Nov 21, 2009
Interest Rates Near Zero. The Bank of Japan on Nov. 20 kept its overnight lending rate at 0. (Bloomberg -- Asia)
N.C. accuses firms of duping home buyers Nov 21, 2009
Cooper also alleges W.R. Starkey padded profits by charging discount points, which are usually paid at closing for a lower interest rate on the loan. However, the attorney general said, interest rates weren t reduced, violating state usury laws. (Charlotte Business Journal, NC)
Other opinion: Finance Nov 21, 2009
The key to a central bank's power is credibility, which in turn hinges on the perception and reality that it is focused on setting interest rates and not doing the short-term bidding of politicians. Under Paul A. Volcker, the Fed broke the back of inflation in the 1980s through sustained high interest rates. (Brainerd Daily Dispatch)
Stemming the tide Nov 21, 2009
However, persistent deficits could eventually drive up interest rates, and uncertainty over when or how taxes will rise could dampen business confidence ... Denmark in 1982, Ireland in 1987 and Canada in 1995 all embarked on ambitious programmes after spiralling debts had driven up interest rates. (The Economist)
Cadbury's Carr Stared Down Goldman and RWE as Preparation for Kraft Duel Nov 21, 2009
Outside the boardroom, Carr has been involved with the Bank of England through a state bailout of Royal Bank of Scotland Group Plc, the worst recession since the 1930s and quantitative easing amid record-low interest rates. Cool-Headed. (Bloomberg)
Macquarie Media Says American Consolidated Media Signs New Loan Pact Nov 21, 2009
In return for a fee and an increase in the interest rate on the debt of about 2. 3 percent a year, the lenders wont exercise their rights under the loan breach, Macquarie Media said in a regulatory statement filed today. (Bloomberg -- Australia & New Zealand)
Adviser says borrow now for TEE Center Nov 21, 2009
Interest rates are lower than ever ... Along with bonds, she said, she could also look for stimulus money to put toward inner city revitalization, loans that would have zero percent interest rates. (The Augusta Chronicle)
Unveiling Rothsteins top investor Nov 21, 2009
On Nov. 18, the Hedge Fund Alert Web site said Banyon invited 15 hedge fund managers to lend it money at interest rates of 25 percent to 30 percent. Banyon, in turn, made profits of 300 percent on an annualized basis. (South Florida Business Journal, FL)
Japan's Latest Economic Ailment: Deflation Nov 21, 2009
On Friday, the Bank of Japan upgraded its outlook for the Japanese economy and left interest rates at 0. 1. (Time.com)
* Property sales measures unveiled in Hong Kong Nov 21, 2009
Hong Kong, where developers often top lists of the citys wealthiest and most powerful, has seen many record-breaking property sales in recent months as an influx of Chinese investors and low interest rates stoke demand. Concerns over a possible property market bubble has prompted the government to consider increasing the land supply. (Taipei Times, Taiwan -- World)
* Deflation issue for Japan: minister Nov 21, 2009
Japans central bank announced yesterday that it was leaving its key interest rate unchanged at 0. 1 percent, in the face of the concerns about deflation. (Taipei Times, Taiwan -- World)
Bank of Florida postpones public offering Nov 21, 2009
The subsidiary banks also will not be able to offer an interest rate on deposits that is 75 basis points higher than the prevailing effective rates on insured deposits of comparable amounts and maturities in the subsidiary banks normal market area or the national rates the FDIC periodically releases. McMullan said Bank of Florida Corp. will continue monitoring the public equity markets and is working on other capital strategies. (Tampa Bay Business Journal, FL)
Monster, RBC Capital Resolve Lawsuit Over $66 Million Auction-Rate Dispute Nov 21, 2009
Interest rates on auction-rate investments, typically municipal and student-loan-backed bonds and preferred shares, were reset every seven to 35 days through bidding managed by the dealers. The once $330 billion market collapsed in February 2008, after broker-dealers stopped participating in the auctions. (Bloomberg -- Canada)
Freddie Mac May Face SEC Suit For Errors Nov 21, 2009
The errors centered mostly on the company's failure to report gains and losses in the value of derivatives, which are complex financial instruments it uses to hedge against interest rate swings. Accounting rules require the company to adjust its income as the value of those instruments goes up or down, even if the company still holds them and hasn't actually realized a gain or loss. (Yahoo News -- Corporate Reform)
Stronger dollar, weak economic data pummels stocks Nov 21, 2009
For much of this year, the dollar has been declining as the Federal Reserve s record-low interest rates enable investors to borrow cheaply and encourage them to invest in assets other than cash. That has led to significant gains in stocks and commodities since early March. (Coos Bay-North Bend The World, OR)
HK unveils measures to increase property sales transparency Nov 21, 2009
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Dollar Strengthens as Equities Drop, Investors Buy Short-Term Treasuries Nov 21, 2009
The Bank of Japan left its benchmark interest rate unchanged at 0 ... The yen wont materially sell off until we see a rise in U.S. interest rates, , London-based global head of currency strategy at Royal Bank of Canada, said in a Bloomberg Television interview ... 9306 per dollar as the drop in stocks discouraged carry trades, in which investors buy higher-yielding assets with amounts borrowed in nations with low interest rates. (Bloomberg -- US)
U.S. Stocks Join Global Retreat as Dell, Horton Shares Fall; Dollar Climbs Nov 21, 2009
At the same time, policy makers have stressed the exit from emergency lending measures doesnt necessarily imply they will raise interest rates soon. Stocks all over the world and all risk asset classes are being driven by this liquidity factor, which also is reflected in U.S. dollar weakness, Eastern Investment Advisors Kattar said. (Bloomberg -- US)
Colombia Peso Bond Yields Fall to Three-Year Low on Interest Rate Outlook Nov 21, 2009
Nov. 20 (Bloomberg) -- Colombias peso bonds climbed, pushing yields to an almost three-year low, on speculation the central bank will lower its key interest rate next week to boost the Andean economy. The yield on the nations 11 percent benchmark bonds due in July 2020 fell six basis points, or 0. (Bloomberg -- Latin America)
Mexico GDP Fell Less-Than-Forecast 6.2% in the Third Quarter From Year Ago Nov 21, 2009
The may wait until the third quarter of next year to raise the benchmark interest rate, Flores said. The bank is forecast to keep the rate unchanged at 4. (Bloomberg -- Latin America)
FTSE 100 Climbs, Paring Weekly Drop; Cable & Wireless Advances on Upgrade Nov 20, 2009
The gauge has rebounded 51 percent from this years low on March 3 amid signs government stimulus policies and record-low interest rates are helping to drag the global economy out of recession. The gained 0. (Bloomberg -- UK)
Emerging mkts get hooked to bonds Nov 20, 2009
Sales rose 70% to a record $554 billion this year as central banks across the world cut interest rates. Debuts are planned by governments without credit ratings or dependent on international bailouts. (India Times)
Stronger dollar pummels US stocks Nov 20, 2009
Record-low U.S. interest rates could continue to weigh on the dollar. Jon Biele, head of capital markets at Cowen said investors are searching for direction. (India Times)
HDFC expects rates to firm up by 25-50 bps Nov 20, 2009
MUMBAI: The countrys largest mortgage company Housing Development 00004000 Finance Corporation (HDFC) expects interest rates to go up by 25 to 50 basis points in the first quarter of the next fiscal ... The countrys largest mortgage company Housing Development Finance Corporation (HDFC) expects interest rates to go up by 25 to 50 basis points in the first quarter of the next fiscal. (India Times)
GSI Group Finalizes Agreement With Noteholders to Significantly Reduce Its Debt Nov 20, 2009
- To Implement Pre-Arranged Debt-for-Equity Restructuring, Three Corporate Entities File for Chapter 11 Reorganization - Operations will continue in normal course - Company has ample liquidity. " "We are confident that going into this reorganization process with a pre-agreed upon plan with our noteholders and adequate liquidity will enable us to implement our restructuring in an efficient and timely manner. (Canada Newswire)
House panel votes to audit Federal Reserve Nov 20, 2009
Melvin Watt, D-N.C., argued that Paul's proposal was too intrusive and could indirectly lead to higher interest rates. They proposed a more limited audit. (MSNBC -- Politics)
Smaller, local banks looking good Nov 20, 2009
I moved my account to Austin Telco shortly after having a big bank raise my interest rate 4 percent on a loan I had never been late on. I made a decision about the financing of my daughter's college I have grown to regret. (Cedar Park Hill Country News Weekender, TX)
Bond rating helps CP at market Nov 20, 2009
The utility systems revenue bonds came in at 23,950,000 and with such a low interest rate, a premium was created that will produce total proceeds of 24 million, Wegmiller said. Similarly, the general obligation bonds came back at 11,985,000, but should net 12 million. (Cedar Park Hill Country News Weekender, TX)
Gold soars; dollar sinks Nov 20, 2009
Golds latest advance came as the dollar fell after Federal Reserve officials reiterated that the central bank will keep interest rates low for an extended period to support the economic recovery. Low rates tend to weaken currencies including the dollar, encouraging investors to put their money in higher-yielding assets like gold. (The News-Press -- Business)
Govt still chasing FTA with China: Crean Nov 20, 2009
It said Australian growth should gather pace and exceed trend in 2011, primarily because of the "dynamism of the Chinese economy", as well as the "expansive policy" of low interest rates and the government's stimulus measures. Trade Minister Simon Crean said it was "very pleasing" that a breakthrough had been made with China on another round of negotiations on a free trade agreement (FTA) after a 12-month lag. (Sydney Morning Herald -- Australia)
