Archive for September, 2011
Fed’s Meeting May Be Major Milestone
On Tuesday, the Federal Open Market Committee (FOMC) is set to meet. That meeting may very well be the most important in years. Although it is highly unlikely that the Federal Reserve will change interest rates, market participants may be looking for the possibility of further Fed intervention. That intervention may take the form of [...]
Once High-Flying Tech Innovators Struggle
Both Netflix (NASDAQ: NFLX) and Research in Motion (NASDAQ: RIMM) have seen better days. On Thursday, shares of the smartphone maker Research in Motion plummeted in after-hours trading after the company reported disappointing second quarter earnings and guided lower for its third quarter. Shares of RIM opened down over 20% on Friday. During Thursday’s trading [...]
Fed’s Doves Willing to Do Work
Last week, Charles Evans—governor of the Federal Reserve of Chicago—gave a speech in which he outlined his beliefs about monetary policy going forward in the short-term. Evans may be considered an inflation dove, relatively speaking, as he made clear in his willingness to endorse action despite possible inflationary consequences. “Conditions still aren’t much different from [...]
China to Save Europe, or Take Its Problems Global?
On Tuesday, Italy’s five-year bond auction disappointed, as yields on Italian debt surged to a decade high. The result was that the euro depreciated significantly against the U.S. dollar and gold surged to nearly 1,340 euro per ounce. Earlier in the summer, the European Central Bank (ECB) had intervened in Italy’s bond auctions in an [...]
Despite Inflation, Bank of England Official Wants More Easing
On Tuesday, the consumer price index in the U.K. rose 4.5% on an annual basis, up 0.1% from a month before. The Guardian reports that the increase in the rate of inflation was driven by a rally in the price of energy bills, as well as spiraling prices in clothing and footwear. The rise in [...]
Loeb Lashes Out At Yahoo!
Last Thursday night, CNBC reported that Yahoo! (NASDAQ: YHOO) would retain the services of UBS and Allen and Co. Earlier that day, it was announced that the hedge fund Third Point LLC had taken a 5.1% stake in Yahoo!. Third Point’s manager, Daniel Loeb, wrote a letter to Yahoo!’s board. “Yahoo’s current Board of Directors [...]
Is Bernanke Out of Bullets?
On Thursday last week, the Chairman of the Federal Reserve—Ben Bernanke—gave a speech in Minneapolis. In his speech, Bernanke addressed the current economic climate and the possibility of further Fed support. In recent weeks, some market commentators have begun to characterize the Fed as being “out of bullets.” Some have alleged that, after two consecutive [...]
Japanese Economy Continues to Decline
On Thursday, data on Japanese core machinery orders showed a drop of 8.2%. Analysts had been anticipating a decline of 4.1%. The drop represents the largest drop in the economic indicator in the past 10 months. The decline in machinery orders may be due to a variety of factors. The Japanese economy continues to be [...]
Bank of America Raises Capital It Doesn’t Need?
Bank of America (NYSE: BAC) has claimed repeatedly that it does not need to raise capital. Yet, observers of the bank would never know that by looking at the firm’s recent moves. Back in July, the CEO of the firm—Brian Moynihan—held a conference call to discuss the bank’s second quarter earnings. In the call, Moynihan [...]
We’re Kicking Off the Fall Season with Zecco Elite
With Labor Day behind us, many Americans mourn the symbolic end of summer. At the same time, fall is perhaps my favorite time of year. The leaves are changing. The kids are back at school. Football is starting and the World Series race is on. It’s an exciting time at Zecco, too. This fall we’re making some [...]
