Credit Suisse boss laments strong franc August 22, 2011 THE strong Swiss franc and low interest rates are pressuring Credit Suisse’s revenue but the bank is still confident of reaching a key profitability target, its chief executive said yesterday. Chief executive Brady Dougan said Switzerland’s second-biggest bank, which like many of its rivals has seen sluggish performance in investment banking in recent months, was [...]
Companies don’t pay taxes: we do. A Tobin Tax will cost us far more than it collects September 21, 2011 GLORY be, we are to be saved! As the TUC, President Nicolas Sarkozy, Chancellor Angela Merkel and the European Parliament agree, impose a Financial Transactions Tax (FTT) upon the banks and Europe, or at least the euro, will be saved. The banks shall pay for their errors and kittens will gambol in sunshine once again. [...]
Swiss ponder a peg to euro August 11, 2011 THE EURO pared recent losses against the Swiss franc yesterday, after a senior Swiss central bank official hinted that its currency could be pegged to the euro to prevent further appreciation. Investors have ploughed into the Swiss franc this week, viewing the currency as a relative safe haven while the debt crisis takes it toll [...]
Britain can’t hide behind America forever August 7, 2011 IF you’re in a crowd that’s at risk of being shot at then it helps to be behind someone else and preferably behind something that poses a much bigger target. And that’s where the UK finds itself, shielded from the fire of ratings agencies and bond vigilantes by the Eurozone and the US. In part [...]
Institutions won’t cut off Swissie September 7, 2011 ON Tuesday, the Swiss National Bank (SNB) made an announcement that it would put in place a floor on the Euro-Swiss franc exchange rate, with the SNB indicating that it was prepared to buy foreign currencies in “unlimited quantities”. So how does this move affect institutional investors and currency hedging policy? There were reports following [...]
Institutions won’t cut off Swissie September 7, 2011 ON Tuesday, the Swiss National Bank (SNB) made an announcement that it would put in place a floor on the Euro-Swiss franc exchange rate, with the SNB indicating that it was prepared to buy foreign currencies in “unlimited quantities”. So how does this move affect institutional investors and currency hedging policy? There were reports following [...]
Companies face forex risk on euro July 20, 2011 THE UK has a long history of having an outward looking economy and an ever-increasing number of companies are looking to garner profits abroad. But added to the regulatory and logistical problems of trading overseas, changes to the value of currencies can warp balance sheets. The volatility of the ongoing Eurozone crisis could present a [...]
Companies face forex risk on euro July 20, 2011 THE UK has a long history of having an outward looking economy and an ever-increasing number of companies are looking to garner profits abroad. But added to the regulatory and logistical problems of trading overseas, changes to the value of currencies can warp balance sheets. The volatility of the ongoing Eurozone crisis could present a [...]
Bernanke fails to rule out QE3 October 4, 2011 IN A testimony to the US Congress yesterday, Federal Reserve chairman, Ben Bernanke largely rehashed language used in recent speeches, such as his address at the Jackson Hole symposium in August and his speech to the Economic Club of Minnesota on 8 September. However, forex market reactions leaned more on what the Fed chairman didn’t [...]
Sterling is no shelter from the storm August 9, 2011 WITH the downgrade of US government debt by Standard and Poor’s last week, and the ongoing turmoil in the crumbling Eurozone, George Osborne could be forgiven for feeling a little bullish in his outlook for the UK economy, referring to it as a harbour in a financial storm. In comparison with the US debt ceiling [...]