Falling House Prices Cause Pound to Struggle
The pound weakened against the dollar and the yen today as the National Institute of Economic and Social Research reported that house prices in the UK will continue to decline at least until 2012.
“Another round of falling house prices could trigger another burden for consumer sentiment and this is being priced in by selling the pound,†said Ulrich Leuchtmann, head of currency research in Frankfurt at Commerzbank AG. “The banking sector is far from being out of the woods.†More
Wells Fargo Reports 2nd Quarter Profit of $3.17 B Profit
Wells Fargo – the fourth-largest bank by assets in the US – reported net profit for the 2nd quarter increased 81 percent from a year ago to a record $3.17 billion. More
Morgan Stanley Posts $1.2 B 2nd Quarter Loss
Morgan Stanley reported losses of more than $1.2 billion during the 2nd quarter after repaying money it received as part of last fall’s government’s bailout package. More
RBS Predicts Australian Dollar to Outpace US Dollar
According to Greg Gibbs, a forex analyst with the Royal Bank of Scotland, the Australian dollar could see significant gains in the next six to twelve months.
“The yield widening combined with stable global equity markets and declining volatility and credit spreads should push up high-yield positioning further and suggests scope for the Australian dollar to break to a new high for the year,†Gibbs wrote today in a client briefing note. More
