China’s hidden debt problem
On the surface, China presents a fiscal study in contrast with the United States, keeping a remarkably low ceiling on debt even as it spends its way out of the financial crisis.
But when Chinese leaders meet their U.S. counterparts this week, they should pause for reflection before venting any criticism, because hidden liabilities mean China’s books are uglier — potentially much
uglier — than at first sight. More
Dollar mixed on disappointing earnings
The dollar rose against the pound but slipped versus the euro Friday after Microsoft Corp. and Amazon.com Inc. posted disappointing profit reports, while a closely watched survey suggested the European economy may be stabilizing after a steep drop earlier in the year. More
Euro May Rise to Three-Week High Versus Yen: Technical Analysis
The 16-nation currency is poised to make further gains after it broke through the top of a so-called ichimoku cloud last week when it climbed above 134 yen, said Toshiya Yamauchi, manager of the foreign-exchange margin trading department in Tokyo at Japan’s largest currency broker.
The euro is also poised to gain after it completed a so-called golden cross when its short-term “conversion line†rose above the longer-term “baseline†on the ichimoku chart, he said. More
Krone Favorite as Plunge Leaves Norway ‘Undervalued’
Buying kroner versus euros will return more in the next year than all 48 other foreign-exchange trades tracked by global investment banks, according to median predictions in Bloomberg analyst surveys. Norway’s currency will rise 9 percent by June to 8.2 per euro, from 8.8680 on July 24, the median of 19 forecasts shows. The krone is “hugely undervalued†after falling 11 percent since June 30, 2008, Citigroup Inc. said. More
Bernanke: Economy to bounce back stronger
At a town hall meeting in Kansas City, Mo., the Fed chairman said the recovery will take some time, but that lessons learned will benefit the nation. More
Darling to grill UK bank bosses on lending
Alistair Darling will this afternoon demand to know from the heads of Britain’s biggest banks why they are reaping vast interest charges from small businesses when the cost of borrowing to them is so low.
The Chancellor has arranged a meeting with the chairmen and chief executives of HSBC, Barclays, Lloyds Banking Group and Royal Bank of Scotland. More
