Mainstream News

Argentine Stocks Rise on Speculation Country to Boost Reserves

"The central bank’s board approved a resolution to restrict local lending to the seven largest grains exporters, forcing them to obtain foreign currency financing, which may bring $2 billion into Argentina by year end, said two people familiar with the plan, who asked not to be named because the resolution hasn’t been made public. Reserves have tumbled $10 billion to $33.3 billion this year to a six-year low as the nation increases energy imports and uses the funds to pay foreign debt. Banks will only be able to lend 0.3 percent of their total lending portfolio to companies that export 75 percent of their output and have more than 200 million pesos of outstanding bank loans, the people said." Continue reading →

Continue ReadingArgentine Stocks Rise on Speculation Country to Boost Reserves

Russia Will Probably Hold Rates After Surprise Inflation Jump

"Russia’s central bank will probably refrain from cutting interest rates for a 14th month after a surprise pickup in consumer-price growth last month hurt its struggle to slow inflation to within its target band. Policy makers led by Elvira Nabiullina, who took over as central bank chairman in June, have kept interest rates steady since September 2012 even as the economy of the world’s largest energy exporter has its worst slowdown in four years. Rising food prices after rain delayed the grain harvest and Russia banned pork imports from Belarus. The economy grew 1.2 percent from a year earlier in the second quarter, the worst result since the last three months of 2009." Continue reading →

Continue ReadingRussia Will Probably Hold Rates After Surprise Inflation Jump

Don’t laugh – Bitcoin is making a serious point

"On one side of the Bitcoin argument, this internet-based currency has some fervent backers – many of them tech-savvy youngsters. On the other side stand almost all reputable economists, together with a fierce range of vested interests – including the banks, credit card companies and other conventional players in the extremely lucrative money-transferring business. To them, Bitcoin is a cross between a dangerous irritant and a bad joke. To mention it in conversation is tasteless. To take it seriously is deeply suspect. Yet several events happened last week that made me suspect that Bitcoin – and the idea of 'stateless' currencies more generally – will soon catch the zeitgeist." Continue reading →

Continue ReadingDon’t laugh – Bitcoin is making a serious point

Federal Reserve Economist On Bitcoin: ‘Small Phenomenon But Growing’

"It’s a big moment for Bitcoin. The digital currency has gotten an official nod from the overseer of U.S. currency in the form of a primer out of the Federal Reserve Bank of Chicago. Senior economist François R. Velde wrote an elegant critique of the four-year-old currency, explaining its mechanics, limitations, and prospects for success, ultimately deeming it a 'remarkable conceptual and technical achievement, which may well be used by existing financial institutions.' If this were Economic Mean Girls, this is the part of the movie where Lindsay ‘Bitcoin’ Lohan gets friended by the powerful, popular crowd." Continue reading →

Continue ReadingFederal Reserve Economist On Bitcoin: ‘Small Phenomenon But Growing’

ECB cuts rates to new low of 0.25%, euro sinks

"The European Central Bank (ECB) cuts its main interest rate to 0.25 percent from 0.50 percent on Thursday, sending the euro sharply lower. The announcement - unexpected by many - was followed by a press conference with ECB President Mario Draghi, who insisted the rate cut was in line with previous forward guidance." Continue reading →

Continue ReadingECB cuts rates to new low of 0.25%, euro sinks

Small businesses want Canadians to ditch credit cards every Friday

"The Canadian Federal of Independent Businesses, which represents almost 110,000 small- and medium-sized concerns, teamed up with financial commentator Gail Vaz-Oxlade today to launch a campaign for 'Credit Free Friday.' 'Very few consumers know than $5-7-billion each year in credit card processing fees is embedded in the cost of everything they buy, and with ever-higher tiers of premium cards hitting the market, that cost is only going up,' CFIB president Dan Kelly said as he launched the campaign. 'As consumers are often unaware that the merchant loses between 2-3.5 per cent of a credit card sale, Credit Free Fridays can be a great way to support small firms.'" Continue reading →

Continue ReadingSmall businesses want Canadians to ditch credit cards every Friday

U.S. Deal With JPMorgan Followed a Crucial Call To Justice Department

"On Sept. 24, four hours before the Justice Department was planning to hold a news conference to announce civil charges against the bank over its sale of troubled mortgage investments, Mr. Dimon personally called one of Attorney General Eric H. Holder Jr.’s top lieutenants to reopen settlement talks, people briefed on the talks said. The rare outreach from a Wall Street C.E.O. scuttled the news conference and set in motion weeks of negotiations that have culminated in a tentative $13 billion deal. An account of the negotiations pulls back a curtain on the private wrangling to illuminate how the bank and the government managed to negotiate what would be a record deal." Continue reading →

Continue ReadingU.S. Deal With JPMorgan Followed a Crucial Call To Justice Department

Swiss court convicts former IMF official over Czech mining scam

"De Groote, previously an administrator at the International Monetary Fund, was accused of providing a veneer of credibility, with the cash purportedly coming from investors. ATS reported that he received almost one million Swiss francs for his role in the scam. The five Czechs, including former board members, had managed to gain control of 97 percent of the company. They went on to launder more than a billion Swiss francs. The money was stashed in bank accounts in Switzerland and neighbouring Liechtenstein, in the name of more than 30 firms based in the Bahamas, the Isle of Man and other offshore havens." Continue reading →

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India’s third biggest gold fund reopens to investors

"India's third biggest gold fund will begin accepting fresh investments again after shutting off new buy-ins three months ago to support government efforts to curb bullion demand and control a rising trade deficit. The government and the central bank launched a series of measures this year to curb the country's appetite for gold as India battled a ballooning trade deficit and a weak currency. Gold is the biggest item on India's import bill after oil. The gold fund is part of Reliance Capital, controlled by billionaire Anil Ambani. India has imposed a 10 percent duty on imports of gold, and tied imports to exports. Imports have fallen to a mere 7 tonnes in September from a record 162 tonnes in May." Continue reading →

Continue ReadingIndia’s third biggest gold fund reopens to investors