BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Canada Is the First G8 Member to Raise Interest Rates]]>http://www.bloggingstocks.com/2010/06/02/canada-raises-interest-rates/http://www.bloggingstocks.com/2010/06/02/canada-raises-interest-rates/http://www.bloggingstocks.com/2010/06/02/canada-raises-interest-rates/#commentsFiled under: , , ,

Canada became the first G8 member to raise interest rates. The rate was increased a quarter point to 0.5%. Since the recession began, only a few countries have raised rates, among them Australia, Brazil and India.

The Bank of Canada issued the following statement explaining the rate change: "Given the considerable uncertainty surrounding the outlook, any further reduction of monetary stimulus would have to be weighted against domestic and global economic developments."

Continue reading Canada Is the First G8 Member to Raise Interest Rates

Canada Is the First G8 Member to Raise Interest Rates originally appeared on BloggingStocks on Wed, 02 Jun 2010 12:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bank of CanadaCanadadollarG8interest ratesinthenewsWed, 02 Jun 2010 12:40:00 EST<![CDATA[The Week in Preview: Fed's Beige Book, More Retail Earnings and Canadian Banks]]>http://www.bloggingstocks.com/2010/02/28/the-week-in-preview-feds-beige-book-more-retail-earnings-can/http://www.bloggingstocks.com/2010/02/28/the-week-in-preview-feds-beige-book-more-retail-earnings-can/http://www.bloggingstocks.com/2010/02/28/the-week-in-preview-feds-beige-book-more-retail-earnings-can/#commentsFiled under: , , , , , ,

The Federal Reserve's next Beige Book report is scheduled to be released this week. This report is a compilation of anecdotal information on current economic conditions from each of the 12 Federal Reserve Bank districts, and it is released eight times a year. The data comes from interviews with business contacts, economists, market experts, and other sources. The previous report, released in January, showed some improvement in most districts and growth in consumer spending over the holiday period, though unemployment remained high. The December report showed modest improvement in eight of the districts.

Retailers were in the earnings spotlight last week and for the most part made a strong showing of it. Even as the earnings season winds down, some more retailers are scheduled to release quarterly results this week.

Continue reading The Week in Preview: Fed's Beige Book, More Retail Earnings and Canadian Banks

The Week in Preview: Fed's Beige Book, More Retail Earnings and Canadian Banks originally appeared on BloggingStocks on Sun, 28 Feb 2010 12:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AutoZoneAZOBank of CanadaBank of MontrealBeige BookBIGBJBMOBNSCanadian Imperial Bank of CommerceCMCOSTCostco WholesaleDBRNDDSfeaturedFederal Reserve BankRBCretail earningsRoyal Bank of CanadaRYScotiabankSPLSTDToronto Dominion BankUrban OutfittersURBNWENSun, 28 Feb 2010 12:00:00 EST<![CDATA[BNP Paribas, which signaled credit crunch, is now France's healthiest bank]]>http://www.bloggingstocks.com/2008/08/04/bnp-paribas-which-signaled-credit-crunch-is-now-frances-healt/http://www.bloggingstocks.com/2008/08/04/bnp-paribas-which-signaled-credit-crunch-is-now-frances-healt/http://www.bloggingstocks.com/2008/08/04/bnp-paribas-which-signaled-credit-crunch-is-now-frances-healt/#commentsFiled under: , , , , ,

BNP Paribas, which helped signal the global credit crisis that started one year ago this week, has emerged from the credit crunch as France's healthiest bank, Bloomberg News reported Monday.

BNP Paribas will announce Q2 financial results this week. While earnings are expected to be lower year-over-year, they will probably be better than those of its rivals, Societe Generale SA and Credit Agricole SA, according to Bloomberg. BNP Paribas fell 1.76 euros to 59.77 euros in Monday afternoon trading in Paris.

About a year ago, on August 9, 2007, BNP Paribas halted withdrawals from three funds that invested in subprime mortgage debt. The bank's announcement proved to be the first of dozens credit-loss and write-down announcements by banks, mortgage lenders and other institutional investors, as subprime assets went bad, due to defaults by subprime mortgage payers.

The losses and resulting credit crunch compelled the intervention by the world's major central banks. The U.S. Federal Reserve, European Central Bank, Bank of England, Swiss National Bank and Bank of Canada made hundreds of billions of dollars available in specialized loans through conventional monetary policy tools and via new, special 'facilities,' in an effort to maintain credit market liquidity and prevent bad bank/mortgage lender business models from undermining healthy sectors and the broader economies in the United States and the European Union.

Economic growth is the major concern today

London-based economist Mark Chandler told BloggingStocks Monday that concern about credit markets freezing up again has diminished, but concern about the impact of the housing sector's slowdown on broader economies has not.

Continue reading BNP Paribas, which signaled credit crunch, is now France's healthiest bank

BNP Paribas, which signaled credit crunch, is now France's healthiest bank originally appeared on BloggingStocks on Mon, 04 Aug 2008 12:15:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>asset backed securitiesBank of CanadaBank of Englandbanking sectorbanksBernankeBNP Paribasbond marketcredit marketsECBEuropean Central BankFedgdpinthenewsmonetary policymortgage backed securitiessubprime mortgagessubsprimeSwiss National BankTerm Auction FacilityTrichetU.S. Federal ReserveMon, 04 Aug 2008 12:15:00 EST<![CDATA[Has the Fed faltered?]]>http://www.bloggingstocks.com/2008/01/06/has-the-fed-faltered/http://www.bloggingstocks.com/2008/01/06/has-the-fed-faltered/http://www.bloggingstocks.com/2008/01/06/has-the-fed-faltered/#commentsFiled under: ,

December's disappointing 18,000 jobs-created statistic has not only increased concerns that the U.S. economy is at very sluggish growth levels -- if it hasn't already fallen into a recession -- it's also raised questions regarding the U.S. Federal Reserve's response.

Economist Steve Affinito told BloggingStocks that debate and questions regarding the Ben Bernanke-led Fed's monetary policy are legitimate and warranted.

"In light of recent data, it's perfectly reasonable to ask 'Has the Fed faltered?' and there's considerable debate in econ circles I travel in on that theme. With all of the contractionary forces acting on the U.S. economy, one can legitimately question the incremental response of the Fed," Affinito said. "So far, the evidence appears to be building that the Fed's interest rate response has not been enough."

Continue reading Has the Fed faltered?

Has the Fed faltered? originally appeared on BloggingStocks on Sun, 06 Jan 2008 16:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bank of CanadaBank of EnglandBernankebond marketCPIcredit crunchcredit marketsECBfeaturedFedGDPhousinginflationinterest ratesjob creationjobsmonetary policyrecessionsubprime mortgageSwiss National BankU.S. economyU.S. Federal Reserveunemploymentunemployment rateSun, 06 Jan 2008 16:40:00 EST<![CDATA[Wall Street area taps most loans in Fed's first term auction facility]]>http://www.bloggingstocks.com/2007/12/28/wall-street-area-taps-most-loans-in-feds-first-term-auction-fac/http://www.bloggingstocks.com/2007/12/28/wall-street-area-taps-most-loans-in-feds-first-term-auction-fac/http://www.bloggingstocks.com/2007/12/28/wall-street-area-taps-most-loans-in-feds-first-term-auction-fac/#commentsFiled under: , ,

The U.S. Federal Reserve announced that $16.5 billion of its first $20 billion in loans under its term auction facility went to institutions in the New York district [subscription required], an area that includes the headquarters of some of the nation's largest banks, The Wall Street Journal reported on Friday. The Fed doesn't disclose loan sizes or borrowers' identities.

Meanwhile, the Fed's Dallas district reported loans of $1.4 billion, while the St. Louis district reported loans of $1 billion.

Earlier this fall, the Fed established the term auction facility as an alternative short-term loan operation because banks were reluctant to access the Fed's traditional short-term window, the discount window. Banks became reluctant to borrow from the discount window because of the stigma attached: doing so can telegraph distress to other banks.

Fed Analysis: So far, the Fed's effort, along with the effort of the European Central Bank and other major central banks, to provide short-term loans to banks appears to be working. Both overnight and two-week liquidity has improved, as measured by yield spreads and transaction conditions. A later announcement by the Fed to maintain the term auction facility "for as long as necessary" further calmed the markets. Still, investors/readers should keep in mind that the housing correction / credit quality issue is young: given the plethora of at-risk subprime loans and related assets, more default declarations are undoubtedly ahead in 2008.

Wall Street area taps most loans in Fed's first term auction facility originally appeared on BloggingStocks on Fri, 28 Dec 2007 16:11:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Bank of CanadaBank of Englandbond marketBondMarketcredit marketsdiscount ratediscount windowECBEuropean Central BankhousinginthenewsLIBORliquiditymonetary policymortgage ratesSwiss National Bankterm auction facilityU.S. Federal Reserveyield spreadsFri, 28 Dec 2007 16:11:00 EST<![CDATA[European Central Bank offers unlimited funds to ease credit crunch]]>http://www.bloggingstocks.com/2007/12/18/european-central-bank-offers-unlimited-funds-to-ease-credit-crun/http://www.bloggingstocks.com/2007/12/18/european-central-bank-offers-unlimited-funds-to-ease-credit-crun/http://www.bloggingstocks.com/2007/12/18/european-central-bank-offers-unlimited-funds-to-ease-credit-crun/#commentsFiled under: , , ,

The European Central Bank late Monday announced that it will offer banks unlimited funds starting Tuesday at below-market interest rates, in a special operation to head-off a year-end liquidity crunch, The Financial Times reported Monday night.

The move, which follows last week's coordinated series of measures by the world's major central banks to increase market liquidity, suggests the ECB is still frustrated at the failure to ease financial market tensions, The Financial Times said.

Agence France-Presse Monday night reported that during the two-week market refinancing operation [MRO], the ECB will allow banks to borrow an unlimited amount of funds and would keep the key short-term rate near 4.21%, below the 4.9% rate for similar operations over the past few days.

Continue reading European Central Bank offers unlimited funds to ease credit crunch

European Central Bank offers unlimited funds to ease credit crunch originally appeared on BloggingStocks on Tue, 18 Dec 2007 08:07:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bank of CanadaBank of Englandbond marketcredit marketsECBEuropean Central BankFedhousinginterest ratesInterestRatesinthenewsmonetary policysubprimesubprime defaultsSwiss National BankU.S. Federal ReserveTue, 18 Dec 2007 08:07:00 EST<![CDATA[Who's afraid of coordinated central banks?]]>http://www.bloggingstocks.com/2007/12/14/whos-afraid-of-coordinated-central-banks/http://www.bloggingstocks.com/2007/12/14/whos-afraid-of-coordinated-central-banks/http://www.bloggingstocks.com/2007/12/14/whos-afraid-of-coordinated-central-banks/#commentsFiled under: , , , ,

Once again, the ever-incisive Financial Times columnist Martin Wolf, an economist, identifies with laser-accuracy what ills the current market. The problem, Wolf argues, is not a lack of solvency but a lack of liquidity (i.e. 'panic').

Wolf does not deny that there have been bad loans (there have been) or that no companies will go out of business (some will). But the circumstance that froze credit markets, that caused quality corporate bonds to fail to price, and that leads to 100-point spreads between the LIBOR rate (what banks charge each other) and the ECB's benchmark interest rate, is rooted more in a lack of confidence, than a lack of sound economic fundamentals or a lack of resources.

A lack of liquidity

And a lack of liquidity or 'panic' is something that central bankers can address. With the above in mind, the U.S. Federal Reserve's plan, in consultation with the European Central Bank, the Bank of England, the Swiss National Bank, and the Bank of Canada, to inject $40 billion via auctions into the financial system is appropriate and prudent. (Further, in addition to reciprocal currency arrangements, the companion central banks will take related actions, including the Bank of England's decision to accept a wider range of collateral on 3-month loans).

Continue reading Who's afraid of coordinated central banks?

Who's afraid of coordinated central banks? originally appeared on BloggingStocks on Fri, 14 Dec 2007 18:08:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bank of CanadaBank of Englandbanking regulationbanking sectorBen BernankeBernankebond marketcredit crunchcredit marketsCreditCrunchECBEuropean Central BankFederal Reservehousinginterest ratesLIBORliquidityMartin Wolfmonetary policymoral hazardmortgage backed securitiesmortgage defaultsmortgage lendersSIVssolvencysubprime defaultssubprime mortgageSwiss National BankU.S. CongressU.S. Federal ReserveWolfFri, 14 Dec 2007 18:08:00 EST<![CDATA[Investing in Ontario: Research in Motion (RIMM), Nortel Networks (NT), and IMAX (IMAX)]]>http://www.bloggingstocks.com/2007/10/25/investing-in-ontario-research-in-motion-rimm-nortel-networks/http://www.bloggingstocks.com/2007/10/25/investing-in-ontario-research-in-motion-rimm-nortel-networks/http://www.bloggingstocks.com/2007/10/25/investing-in-ontario-research-in-motion-rimm-nortel-networks/#commentsFiled under: , , ,

My recent Investing in Ontario post took a look at the Royal Bank of Canada (NYSE: RY), Manulife Financial Corp. (NYSE: MFC), and Toronto-Dominion Bank (NYSE: TD); three public companies examined by the Motley Fool this past summer.

However, Ontario is more than just Canada's financial center. Its abundance of resources and location on Great Lakes have made Ontario a manufacturing powerhouse, including steel production and automobile manufacturing in southern Ontario, and mining and forestry in the north. Toronto is Canada's film and media center, as well as an important tourism destination. Niagara Falls is one of world's most popular tourist destinations. Other Ontario companies the Motley Fool liked include Research in Motion Ltd. (NASDAQ: RIMM), Nortel Networks Corp. (NYSE: NT), and IMAX Corp. (NASDAQ: IMAX).

Research in Motion (RIM), Canada's largest public company, is well know for its BlackBerry smart phones, but it also provides software development tools and produces radio-based modems used in portable devices. The consensus recommendation of analysts surveyed by Thomson Financial is to buy RIM, and has been since April. RIM met analysts' earnings per share estimate when it reported second quarter FY2008 earnings in early October, and Wall Street expects EPS of 62 cents in the third quarter, double the 31 cents actual from a year ago. RIM has a five-year EPS growth rate of 73.5%, easily beating the S&P 500 and the technology sector average. RIM's share price has been climbing since a share split in August, to reach a 52-week high of $128.36 on Tuesday; it opened today at $124.75. Also this week, RIM announced plans to sell the BlackBerry in China, and introduced Facebook for the BlackBerry as well. For more on Microsoft Corp.'s (NASDAQ: MSFT) challenge to RIM and other RIM-related news, see Bloggingstocks' RIM coverage.

Continue reading Investing in Ontario: Research in Motion (RIMM), Nortel Networks (NT), and IMAX (IMAX)

Investing in Ontario: Research in Motion (RIMM), Nortel Networks (NT), and IMAX (IMAX) originally appeared on BloggingStocks on Thu, 25 Oct 2007 16:45:00 EST. Please see our terms for use of feeds.

Read | Read | Permalink | Email this | Comments]]>Bank of CanadaBlackBerryCanadaCasablancaChinadigital projectionFacebookfeaturedGreat LakesIMAXlawsuitsManulifeManulife FinancialMFCMicrosoftMoroccoMotley FoolMSFTNiagara FallsNortelNortel NetworksNTOntarioOntario Securities CommissionResearch in MotionRIMRIMMRoyal Bank of CanadaRYSECsmart phoneTDTorontoToronto-Dominion BankThu, 25 Oct 2007 16:45:00 EST<![CDATA[Investing in Ontario: Royal Bank of Canada (RY), Manulife Financial (MFC), Toronto-Dominion Bank (TD)]]>http://www.bloggingstocks.com/2007/10/12/investing-in-ontario-royal-bank-of-canada-ry-manulife-financ/http://www.bloggingstocks.com/2007/10/12/investing-in-ontario-royal-bank-of-canada-ry-manulife-financ/http://www.bloggingstocks.com/2007/10/12/investing-in-ontario-royal-bank-of-canada-ry-manulife-financ/#commentsFiled under: , ,

Its abundance of resources and location on the Great Lakes have made Ontario an economic powerhouse. Canada's capital, Ottawa can be found there, as well as its largest city, Toronto, which is also Canada's financial hub. Seven of Ontario's eight largest companies are financial institutions, and Toronto is also the home of one of the largest stock exchanges in the world. When the Motley Fool took a look at stock investment opportunities in Ontario this past June, three of the companies they focused on were financial institutions: Royal Bank of Canada (NYSE: RY), Manulife Financial Corp. (NYSE: MFC) and Toronto-Dominion Bank (NYSE: TD). Considering the credit crunch and the weakness of the U.S. dollar, I thought it might be interesting to see how those companies are faring now.

The Royal Bank of Canada, also known as RBC Financial Group, is Canada's largest financial institution. It has 1,300 domestic locations and offices in 30 countries. In September, RBC's Gord Nixon won Canada's Outstanding CEO of the Year award for 2007. More recently, RBC announced the acquisition of a Caribbean bank, and it was one of four Canadian banks affected by restructuring at VISA. With RBC's five-year earnings per share growth rate of 26.5% (better than the S&P 500), the consensus recommendation of analysts surveyed by Thomson Financial is to buy RBC, despite missing earnings expectations for the past two quarters. RBC's share price is near an all-time high on the NYSE, closing Thursday at $57.09 on the NYSE. RBC will release its next quarterly report on November 30.

Continue reading Investing in Ontario: Royal Bank of Canada (RY), Manulife Financial (MFC), Toronto-Dominion Bank (TD)

Investing in Ontario: Royal Bank of Canada (RY), Manulife Financial (MFC), Toronto-Dominion Bank (TD) originally appeared on BloggingStocks on Fri, 12 Oct 2007 14:25:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bank of CanadaCanadaCEO of the YearCharles GrassleyCommerce BancorpfeaturedGord Nixonlong-term care complaintsManulifeManulife FinancialMFCMotley FoolOntarioOttawaRBCRoyal Bank of CanadaRYSenator GrassleyTDTD BankTD BanknorthTD Financial GroupTorontoToronto Stock ExchangeToronto-Dominion BankU.S. dollarVISAFri, 12 Oct 2007 14:25:00 EST