roguetrader
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barjon
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[BRIEFING.COM] Following comments out of Alan Greenspan, who is currently discussing the current account at the Banco de Mexico conference, the market has headed slightly higher. Particularly, the Fed Chairman asserted that the US is having no trouble funding the external deficit, and doubts that the dollar will lose status as a reserve. As shown in last Thursday's data, the budget deficit as a percentage of GDP has now fallen to 2.4%, which is actually slightly below the average of the past few decades. It is Briefing.com's view that earnings growth and the degree to which the Fed raises rates will drive the stock market in 2006 - and that the trade deficit is not going to adversely impact the stock market. [ NYSE Adv/Dec 1255/1591... Nasdaq Adv/Dec 1304/1327 ]
and the first
10:19 ET Greenspan: U.S. current account deficit cannot grow forever WASHINGTON (MarketWatch) -- The U.S. current account deficit, which is now above 6% of GDP, cannot continue to widen forever, said Fed chief Alan Greenspan. At some point, foreign investors will take steps to limit their dollar holdings, and there is little U.S policymakers can, or should, do to stem this natural market process, he said in a speech via video-conference to a Bank of Mexico conference. Greenspan said he did not think the U.S. dollar would lose its status as a reserve currency as a result of this adjustment, but said economic flexibility from de-regulation remains critical to allow the U.S. to adjust to any economic aftershocks from a shift in the current account.
and the first
10:19 ET Greenspan: U.S. current account deficit cannot grow forever WASHINGTON (MarketWatch) -- The U.S. current account deficit, which is now above 6% of GDP, cannot continue to widen forever, said Fed chief Alan Greenspan. At some point, foreign investors will take steps to limit their dollar holdings, and there is little U.S policymakers can, or should, do to stem this natural market process, he said in a speech via video-conference to a Bank of Mexico conference. Greenspan said he did not think the U.S. dollar would lose its status as a reserve currency as a result of this adjustment, but said economic flexibility from de-regulation remains critical to allow the U.S. to adjust to any economic aftershocks from a shift in the current account.
Significant ?
Discontinuance of M3
On March 23, 2006, the Board of Governors of the Federal Reserve System will cease publication of the M3 monetary aggregate. The Board will also cease publishing the following components: large-denomination time deposits, repurchase agreements (RPs), and Eurodollars. The Board will continue to publish institutional money market mutual funds as a memorandum item in this release.
Measures of large-denomination time deposits will continue to be published by the Board in the Flow of Funds Accounts (Z.1 release) on a quarterly basis and in the H.8 release on a weekly basis (for commercial banks).
And some interesting discussion
Discontinuance of M3
On March 23, 2006, the Board of Governors of the Federal Reserve System will cease publication of the M3 monetary aggregate. The Board will also cease publishing the following components: large-denomination time deposits, repurchase agreements (RPs), and Eurodollars. The Board will continue to publish institutional money market mutual funds as a memorandum item in this release.
Measures of large-denomination time deposits will continue to be published by the Board in the Flow of Funds Accounts (Z.1 release) on a quarterly basis and in the H.8 release on a weekly basis (for commercial banks).
And some interesting discussion
Last edited:
roguetrader
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roguetrader
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roguetrader
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roguetrader
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roguetrader
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roguetrader
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roguetrader
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roguetrader
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roguetrader
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Racer
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MRS Tokyo shares : Probe into #128m error
09-Dec-2005 12:45
Regulators today announced a major
investigation into how a trader in
Japan executed an erroneous trade and
sent stock markets across Asia sharply
lower.
The financial services watchdog in
Tokyo acted after a typing error led to
brokerage Mizuho Securities losing at
least 27 billion yen (#128m) and
sparked a fall of 300 points on the
benchmark Nikkei index yesterday.
The trouble began in the morning when
Mizuho Securities tried to sell 610,000
shares in a recruitment agency called
J-Com at one yen each.
The trader had meant to sell one share
at 610,000 yen but the Tokyo Stock
Exchange processed the trade even
though it was for 41 times the size of
J-Com stock.
In addition to the turbulence in
Tokyo, the mistake caused the Hang Seng
index to fall more than 250 points in
Hong Kong yesterday and raised fears
that the scenario - dubbed "fat finger"
syndrome - could occur in London.
This is despite major banks and
financial institutions pouring millions
of pounds into tightening up their
computer systems to prevent trades
being made in error.
In 2001, the FTSE 100 Index plummeted
140 points after a trader working for
Lehman Brothers keyed in #300m for a
trade that should have been #3m.
The sell order involved a clutch of
stocks and sent some of the market's
biggest names, including Vodafone and
BP, sharply lower.
Henk Potts, of Barclays Stockbrokers,
said checks and balances had improved
since then but added: "The fact that a
mistake like this can slip through a
company's procedures is horrifying."
Mizuho and the Tokyo Stock Exchange
were rebuked by Japan's government over
the mistake today, although markets in
Asia recovered much of the lost ground.
"In order to maintain the credibility
of the Tokyo Stock Exchange, I very
strongly want this issue to be resolved
quickly," economy and banking minister
Kaoru Yosano said.
J-Com's shares made their debut at
672,000 yen (#3.19) but plunged to
572,000 yen (#2.71) as the crisis
unfolded before recovering to closer
above its flotation price.
It exacerbated jitters over the
reliability of the exchange's trading
system after a glitch in November shut
down the market for almost an entire
day.
1245 GMT Dec 09 2005
09-Dec-2005 12:45
Regulators today announced a major
investigation into how a trader in
Japan executed an erroneous trade and
sent stock markets across Asia sharply
lower.
The financial services watchdog in
Tokyo acted after a typing error led to
brokerage Mizuho Securities losing at
least 27 billion yen (#128m) and
sparked a fall of 300 points on the
benchmark Nikkei index yesterday.
The trouble began in the morning when
Mizuho Securities tried to sell 610,000
shares in a recruitment agency called
J-Com at one yen each.
The trader had meant to sell one share
at 610,000 yen but the Tokyo Stock
Exchange processed the trade even
though it was for 41 times the size of
J-Com stock.
In addition to the turbulence in
Tokyo, the mistake caused the Hang Seng
index to fall more than 250 points in
Hong Kong yesterday and raised fears
that the scenario - dubbed "fat finger"
syndrome - could occur in London.
This is despite major banks and
financial institutions pouring millions
of pounds into tightening up their
computer systems to prevent trades
being made in error.
In 2001, the FTSE 100 Index plummeted
140 points after a trader working for
Lehman Brothers keyed in #300m for a
trade that should have been #3m.
The sell order involved a clutch of
stocks and sent some of the market's
biggest names, including Vodafone and
BP, sharply lower.
Henk Potts, of Barclays Stockbrokers,
said checks and balances had improved
since then but added: "The fact that a
mistake like this can slip through a
company's procedures is horrifying."
Mizuho and the Tokyo Stock Exchange
were rebuked by Japan's government over
the mistake today, although markets in
Asia recovered much of the lost ground.
"In order to maintain the credibility
of the Tokyo Stock Exchange, I very
strongly want this issue to be resolved
quickly," economy and banking minister
Kaoru Yosano said.
J-Com's shares made their debut at
672,000 yen (#3.19) but plunged to
572,000 yen (#2.71) as the crisis
unfolded before recovering to closer
above its flotation price.
It exacerbated jitters over the
reliability of the exchange's trading
system after a glitch in November shut
down the market for almost an entire
day.
1245 GMT Dec 09 2005
