Euro Slides to One-Month Low on Concern ECB Discord Deepening
The euro dropped to less than $1.30 for the first time in a month and fell versus the yen on concern disagreement is deepening among European Central Bank policy makers on the measures needed to combat the recession. More
BofA Tops Forecasts with Help from Merrill
Bank of America on Monday disappointed investors by reporting a big increase in troubled loans, even as its purchase of Merrill Lynch helped first-quarter profit more than double.
While results topped analysts’ forecasts, they were bolstered by one-time events, including a $1.9 billion gain from selling shares of China Construction Bank and $2.2 billion of gains tied to widening credit spreads. More
China’s Wen says key currency countries need watching
China’s Premier Wen Jiabao said on Saturday that economic polices of countries which issue global reserve currencies require closer supervision as part of building a diversified international monetary system.
His comments, an apparent reference to U.S. economic management that Beijing has blamed in part for the global financial crisis, were twinned with a pledge to promote more international use of the yuan, China’s currency.More
U.S. to put conditions on TARP repayment
Strong banks will be allowed to repay federal bailout funds, but only if such a move passes a test to determine whether it is in the national economic interest, the Financial Times reported on Sunday, citing a senior U.S. administration official.
The report said banks that had plenty of capital and demonstrated an ability to raise fresh capital from the market should, in principle, be able to repay government funds.More
Bank of America triples profits to $4.2bn
Bank of America (BoA) reported a $4.2 billion (£2.9 billion) profit for the first quarter, more than three times higher than 2008, despite a surge in bad debts at America’s biggest bank. More
Trichet: Further ECB rate cut would be by 25 bps
European Central Bank President Jean-Claude Trichet on Sunday signalled the bank’s likely next move, saying it could cut its headline interest rate but only by an additional 25 basis points. Trichet is currently on a trip to Japan. In an interview with Kyodo news agency he said any additional cut would be a very measured one. In an interview with Yomiuri newspaper, Trichet said: “I said I did not exclude that we could decrease rates by a very measured pace. “I said: today we had decreased rates by 25 basis points. It’s a measured pace. Therefore it is the scale of a possible future move.”More
