24-Sep-2010

federal-reserve

US Economy

+ At the Federal Reserve meeting this week they expressed their willingness to act alone if needed, providing a “Bernanke put” for the economy. (Stefane Marion, Sept. 2010)

+ The risk of renewed recession is concentrated in the next 6-9 months according to Goldman Sachs. Short-cycle factors such as inventories and fiscal policies impact on growth are moving quickly from positive to negative territory. Long-cycle factors such as bank credit standards and excess housing supply are moving gradually from deep negative to positive territory leading towards a gradual self healing. (Jan Hatzius, Sept. 2010)

+ REITs completed $21.2 billion in secondary sales last year, primarily used for balance-sheet repairs… money raised this year is funding purchases intended to boost earnings. (National Association of Real Estate Investment Trusts Sept. 2010)

Europe

+ In response to corporate tax cuts in the first quarter, France’s economy grew faster than originally estimated in the second quarter; powered by consumer spending and exports, increasing GDP by 0.7%.

+ In September, Germany, Europe’s largest economy, reached its highest level of business confidence since June 2007.

Japan

+ Bank of Japan officials would not comment on Friday’s sudden jump in the US dollar on the Tokyo market, while at the same time gold traded over $1,300.

+ The Chinese government has stopped exports of rare earth elements to Japan in the wake of a dispute over a Chinese fishing vessel’s collision with a Japanese patrol boat near the Senkaku Islands.