728x90 AdSpace

Latest News
November 7, 2013

Key Market Trends Nov. 7, 2013

By Emann Charts

Last year the median wage hit its lowest level since 1998, revealing that at least half of American workers are being left behind as the economy slowly recovers from the Great Recession.

But at the top, wages soared — the latest indication in a long-running trend of increasing inequality, with income gains going to top earners while the majority of workers see stagnant or falling wages.

BIS: The most powerful bank in the world announces the crash

The Bank for International Settlements (BIS) is the current situation on the financial markets as worse than before the Lehman bankruptcy. The warning of the BIS could be the reason why the U.S. Federal Reserve decided to continue indefinitely to print money: Central banks have lost control of the debt-tide and give up.

Bitcoin’s price hit a record at $265 on the BitStamp online exchange, driven by wider acceptance of the virtual currency.

The digital money, which can be used to pay for goods and services on the Internet, has risen 20-fold so far this year, as trading activity has increased. Bitcoins were trading at $251.36 apiece at 6:30 p.m. in New York on BitStamp, one of the more active Web-based exchanges where Bitcoins are traded for dollars, euros and other currencies.

Lenders including JPMorgan Chase & Co. (JPM) and Citigroup Inc. (C) will have to show they can survive the demise of a trading partner or a plunge in value of high-risk business loans in the 2014 version of U.S. stress tests.

The scenarios for the annual tests, outlined by the Federal Reserve in a statement yesterday, reflect some of the most pressing threats seen by regulators as they gauge the ability of the U.S. financial system to withstand economic shocks. Bankers will have to show what would happen to the value of leveraged loans they hold, the impact of another housing bust and how they’d fare if a firm that owes them substantial sums collapses.

I've been away for weeks now on a non-financial assignment (we have something unusual coming out in Rolling Stone in a few weeks) so I've fallen behind on some crazy developments on Wall Street. There are multiple scandals blowing up right now, including a whole set of ominous legal cases that could result in punishments so extreme that they might significantly alter the long-term future of the financial services sector.

Paul Craig Roberts thinks the Fed has backed itself into corner. A rise in interest rates would strengthen the dollar, give the dollar new life as world reserve currency, and halt the movement into gold, but a rise in rates would collapse the bond and stock markets and reduce the value of derivatives on the banks’ balance sheets. I asked Dr. Roberts if the Fed would sacrifice the dollar in order to save the banks and what the effect would be on Washington’s power viv-a-vis the rest of the world. His answers to these three questions suggest that Washington’s days of financial hegemony and world leadership are numbered.

First it was the US -- and now it turns out the UK might have been spying from its embassy in Berlin, too. Officials at Germany's Foreign Ministry responded Tuesday by inviting Britain's ambassador for a lecture.

Reacting to allegations that yet another close ally might be spying on its leaders from an embassy in Berlin, Germany's Foreign Ministry invited Britain's ambassador to a meeting on Tuesday afternoon to discuss the allegations. The invitation had been requested by Foreign Minister Guido Westerwelle.

SAN FRANCISCO (MarketWatch) — Twitter on Wednesday priced its initial public offering at $26 a share, setting the stage for what’s expected to be the most closely watched IPO since Facebook’s rocky debut last year.

Twitter’s price makes its IPO worth $1.82 billion and marks the second biggest debut ever for an Internet company — even eclipsing the size of Google’s IPO in 2004. Twitter is expected to begin trading Thursday morning on the New York Stock Exchange under the ticker symbol “TWTR.”

While it took Japan over two years to admit the Fukushima situation on the ground is "out of control", a development many had predicted for years, a just as important topic is what are the implications of this uncontrolled radioactive disaster on not only the local environment and society but also globally, particularly Japan's neighbor across the Pacific - the US.

What would the world look like if all the ice currently on land (more than 5 million cubic miles) melted? Well, we wouldn't be living in Waterworld, but the drastic sea level rise would have very destructive implications for many of the world's major cities.

These amazing images come from National Geographic magazine's interactive "If All The Ice Melted" graphics up on their website. In the image, sea level has risen 216 feet.

Take away the haze of air pollution and Waterfront Corso Mansions near Tianjin might seem like an urban idyll for China’s growing population of city dwellers.

Inside a gated compound, residential towers and houses overlook a lake and manicured gardens. What’s missing from the neighborhood are shops and amenities, turning the block and hundreds like it in the suburb of Meijiang into a giant dormitory for Tianjin, 40 minutes away by car.

Sir Tim Berners-Lee, the computer scientist who created the world wide web, has called for a "full and frank public debate" over internet surveillance by the National Security Agency and its British counterpart, GCHQ, warning that the system of checks and balances to oversee the agencies has failed.

The damning assessment was given as the heads of GCHQ, MI5 and MI6 prepared to face questioning by MPs in the Commons on Thursday. In an unprecedented hearing in Westminster, questions over the conduct of Britain's spy agencies will be raised when the heads of the three secret services – MI5, MI6 and GCHQ – go before parliament's intelligence and security committee.

President Obama has claimed he didn't know the US was spying on Chancellor Angela Merkel. SPIEGEL asks White House security veteran Michael Allen about whether that's possible -- and how the NSA sets its priorities in the first place.

SPIEGEL: The spying activities of the NSA have led to a great uproar in Europe, where residents have also been taken aback by the unapologetic response of American intelligence officials in Congressional hearings.

The coalition has been accused of sacrificing Portsmouth's 500-year-old shipbuilding tradition to save the industry in Glasgow before Scotland's independence referendum, as it unveiled plans for almost 1,800 job losses in the two cities.

Philip Hammond, the Conservative defence secretary, said it was "regrettable but inevitable" that BAE Systems' Portsmouth site would have to close, as there would no longer be enough orders to sustain two major military shipyards in the UK.

Britain's manufacturers ramped up production in September, according to official figures, helping to keep hopes alive of an industrial renaissance, despite the news of nearly 1,800 shipbuilding job losses.

The Office for National Statistics said on Wednesday that manufacturing output increased by a better than expected 1.2% in September, reversing the 1.2% drop a month earlier.

Wells Fargo has agreed to pay $335m (£208m) to settle claims it misled investors over mortgage-backed bonds during the housing boom.

The banking giant was accused of using false information in some of the documents relating to the bonds.

The claims were made on behalf of Fannie Mae and Freddie Mac - key players in the US market - which buy mortgages and sell them to investors.

AFP - With deals from London to Singapore, China is seeking a greater role for its yuan currency in global markets to challenge the hegemony of the almighty dollar.

The most attention-grabbing reform planned for Shanghai's new free trade zone is free convertibility of the yuan -- also known as the renminbi, or "people's money" -- an unprecedented change which would allow greater use of the currency.

The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.

© EconMatters All Rights Reserved | Facebook | Twitter | Post Alert | Kindle
  • Blogger Comments
  • Facebook Comments
Item Reviewed: Key Market Trends Nov. 7, 2013 Rating: 5 Reviewed By: EconMatters