ECB Trichet departure sparks Greece rescue talk
European Central Bank President Jean-Claude Trichet is cutting short a trip to Australia to attend a special EU summit, prompting market speculation initiatives are in the works to help resolve Greece’s debt problems. EU heads of state are due to meet this week in Brussels for a special summit on the economy under pressure to […]
CIT hires new CEO
CIT Group Inc has hired former Merrill Lynch CEO John Thain as its new chief executive, the commercial lender said in early February, wagering that the well-traveled executive can guide its post-bankruptcy turnaround. Thain, 54, immediately replaces interim CEO Peter Tobin, who will remain a director. Former CIT chief Jeff Peek, another past Merrill executive, […]
Nakamura rebuffs government pressure over deflation
Bank of Japan policy board member Seiji Nakamura rebuffed government pressure for more BOJ action to fight deflation, saying that pumping liquidity into the financial system alone will not put an end to debilitating price falls. The heavily indebted government fears deflation and a strong yen could push Japan back into recession in the run-up […]
Irish services contraction fastest in six months
Ireland’s services sector shrank by its fastest rate in six months in January, when a marked fall in new orders indicated that unusually bad weather was not solely to blame, a survey showed this week. The NCB Purchasing Managers’ Index fell to 44.4 from 48.3 in December, when it had reached a level last equalled […]
West eyes Iran central bank
Western powers have called for a fourth round of UN measures against Iran for refusing to halt uranium enrichment activities as demanded by five Security Council resolutions. Iran insists it has a sovereign right to produce nuclear fuel for what it says is a peaceful civilian atomic energy programme. The west fears Tehran’s programme is […]
Australia central bank skips a hike
Australia’s central bank shocked markets by skipping an interest rate rise this week, citing the impact of higher mortgage rates at home while noting tighter policy in China and concerns over sovereign debt abroad. The Reserve Bank of Australia’s (RBA) decision to keep its key cash rate at 3.75 percent confounded expectations of a rise […]
Toyota braces for sales hit from recall, costs mount
US auto sales for January are expected to show a sharp drop for Toyota after it pulled eight of its most popular models from showrooms last week following complaints over sticking accelerator pedals. In the first public comment from an executive at Toyota’s head office, the company’s executive in charge of quality said he was […]
Kenya’s MPC sees no risk with domestic inflation
Kenya’s inflation rate is likely to remain low in the near future as the performance of east Africa’s biggest economy improves, the central bank’s Monetary Policy Committee (MPC) said on Friday. In a statement expounding upon the MPC’s decision to keep its key central bank rate (CBR) at seven percent on Tuesday, Central Bank of […]
Too big to fail
White House adviser Paul Volcker will urge Congress to curb the risks taken by large banks to help prevent them from being treated as “too big to fail,” according to a testimony. Detailing a recent proposal known as “the Volcker rule,” the former Federal Reserve Chairman will tell lawmakers that commercial banks’ proprietary and speculative […]
US lawmakers turn up heat on Geithner over AIG
Lawmakers challenged Treasury Secretary Timothy Geithner’s credibility recently after he said he was not involved in a decision by bailed-out insurer AIG to withhold details about $62bn paid to banks. Geithner held his ground at a hearing, however, insisting the government-funded rescue which cost more than $180bn had been necessary to avert economic collapse. Big […]
