Fed Shows Rate Forecasts, Boosts Transparency
Source: Bloomberg Federal Reserve Chairman Ben S. Bernanke is betting that announcing Federal Reserve officials’ own forecasts for borrowing costs will make monetary policy more effective while also supporting the two-year expansion. A decision to reveal forecasts for the federal funds rate starting this month represents the biggest step toward openness since Bernanke took office...
US Manufacturing Probably Expanded in December: Economists
Source: Bloomberg Manufacturing in the US probably expanded in December at the fastest pace in six months, remaining at the forefront of the expansion entering 2012, economists said before a report Tuesday. The Institute for Supply Management’s factory index rose to 53.4 last month from 52.7 in November, according to the median projection of...
Bank of America Set to Top List of 2011 Laggards
Source: Bloomberg Bank of America Corp is on track to be this year’s worst performer in the Dow Jones Industrial Average as concern about mounting mortgage losses and a global economic slowdown weighed on the second-biggest US lender. The 59-per cent decline through Thursday erased almost US$80 billion of shareholder value at Charlotte, North...
Morgan Stanley to Lay Off 580 US Employees
Source: AFP US investment bank Morgan Stanley will soon lay off 580 New York employees, according to an official US document, after earlier announcing plans to eliminate 1,600 jobs by the first quarter of 2012. The New York downsizing was outlined in a document filed with the state department of labour and published Tuesday,...
US Home Prices Probably Fell at Slower Pace: Economists
Source: Bloomberg Home prices in 20 US cities probably fell at a slower pace and consumer confidence climbed, signs of resilience in the economy heading into 2012, economists said before reports on Tuesday. The S&P / Case-Shiller index of property values dropped 3.2 per cent in October from the same month in 2010, the smallest...
US, EU Banks Face Rough Year Ahead
Source: AFP Stalling economies, crumbling assets, tough new capital rules and shrinking avenues to make money paint a rough year ahead for banks on both sides of the Atlantic. That spells bad news for the economies that depend on banks to fuel investment by industry and consumers. Banks in both regions are under the gun...
Money Managers Forge Ahead Despite Volatility
Source: Reuters It is a good time to be a US stock investor for the long term – if you can ignore the noise erupting every few hours. That is the advice from some money managers, who are taking the opposite tack of many who want to avoid the turbulence. Instead, they are confronting the...
Saudi Prince Invests in Twitter
Source: AFP Saudi billionaire Prince Walid bin Talal and his Kingdom Holding Company announced a combined investment of US$300 million in the social networking site Twitter, in a statement Monday. “Our investment in Twitter reaffirms our ability in identifying suitable opportunities to invest in promising, high-growth businesses with a global impact,” Prince Walid said in...
S&P Cut Proves Absurd as Investors Prefer US
Source: Bloomberg Four months after Standard & Poor’s stripped the US of its AAA credit rating and said the world’s biggest economy was no longer the safest of borrowers, dollar-denominated financial assets are doing nothing but appreciating. Government bonds have returned 4.4 per cent, the dollar has gained 8.7 per cent relative to a basket...
Galaxy and iPhone to Top Smartphone Holiday Sales
Source: Reuters Apple’s long-awaited iPhone 4S and Samsung Electronics’ fresh, broad offering are likely to stand out in this holiday season’s smartphone sales which will otherwise be clouded by global economic uncertainty. Apple, which lost its position as the world’s largest smartphone maker to Samsung last quarter, could regain top spot as consumers rush to...
Zynga Raises US$1 billion, Pricing IPO at Top of Range
Source: Bloomberg Zynga Inc, the largest maker of games for Facebook Inc’s website, raised US$1.0 billion in its initial public offering, pricing the shares at the top of the marketed range. The developer of games such as “CityVille,” “FarmVille”and “Mafia Wars” sold 100 million shares for US$10.0 each, according to data compiled by Bloomberg. Zynga...
Google Boosts Asia Data Capacity with New Singapore Facility
Source: AFP Search engine giant Google on Thursday formally launched the construction of a new data centre in Singapore to cope with the explosive growth of internet traffic in Asia-Pacific. “I think it’s safe to say this is the fastest-growing region in the world in terms of internet usage and we have a very strong...
