ROUND-UP
FT markets round-up: "Wall Street investors managed to shake off an early bout of earnings-related caution and push the S&P 500 to within a whisker of a record closing high, as the prospect of continued central bank liquidity prompted investors to once again 'buy on the dips'. It was a different story in Tokyo, however, as the recent stellar performance of Japanese stocks – and the yen's recent slide against the dollar – came to an end, for now at least. The US currency climbed to within a whisker of Y100 before running into profit-taking – although most analysts believed a breach of that level seemed inevitable given the Bank of Japan's dramatic embracing of quantitative easing." (Financial Times)
KPMG resigns as Herbalife auditor: "KPMG has resigned as auditor to two US companies after accusing a former partner of passing confidential information about them to an alleged insider trader. LA-based Herbalife – the nutritional supplement maker that is at the centre of a battle between Carl Icahn, the corporate raider, and short-seller Bill Ackman – announced it was one of the two companies audited by the former partner. Skechers, the footwear maker, said KPMG had also resigned as its auditor." (Financial Times)
US urges euro states to boost demand: "Countries with sound finances should act to boost domestic demand, the new US Treasury secretary said on a visit to Germany that highlighted continuing sharp differences between the two countries on fiscal policy. Jack Lew spent his first official trip to Europe telling eurozone leaders that nations with room for fiscal manoeuvre – such as his hosts in Berlin – must create demand to offset budget cutting in troubled economies from Spain to Greece." (Financial Times)
Google favours 'in-house' search results: "Google faces having to offer users in Europe more choice of other specialised search engines after Brussels investigators found its results were favouring its in-house services to the detriment of consumers." (Financial Times)
Gross upbeat on 10-year Treasuries: "Bond market heavyweight Bill Gross has again warmed up to longer-dated Treasury bonds after snubbing the securities for months, the latest sign of how the Bank of Japan's bold monetary stimulus is causing global investors to change course." (Wall Street Journal)
FURTHER FURTHER READING
- Crosby to give up knighthood.
- Trade vs technology, labour market effects.
- America's most profitable export is cash.
- Sampling alternative currencies.
- Mrs Thatcher and the Keynesian consensus.
