FURTHER FURTHER READING
- Whose low rates are these?
- Calculated Risk on Tuesday's housing data.
- Spain's population shrunk last year as emigrants vastly outnumbered immigrants.
- Using money to buy happiness.
- Martin Wolf on the Fed: "Careless talk may cost the economy".
ROUND-UP
FT markets round-up: "US economic data allayed anxieties surrounding rising interest rates that have roiled markets, easing pressure on the Federal Reserve as it considers slowing its support for the recovery. US home prices posted their largest year-over-year gain in seven years in April, while sales of new houses climbed in May to an almost five-year high, showing further strength in the country's housing market. Consumer confidence jumped last month to its highest level in more than five years, and better than expected durable goods orders signalled some stability in the manufacturing sector." (Financial Times)
Qatar emir abdicates and hands power to his son: "Qatar's emir abdicated in a televised address on Tuesday handing over power to his son, Sheikh Tamim bin Hamad al-Khalifa. In a highly unusual move among the hereditary monarchies of the Gulf, Sheikh Hamad bin Khalifa, 61, said he would take on another role, without elaborating." (Financial Times)
China's about face with banks eases fears of crisis: "It is official: the Chinese central bank does not want to trigger its own credit crisis. After two weeks of starving the financial system of cash and telling banks to clean up their own mess, the People's Bank of China struck a much more emollient tone on Tuesday. In a volte-face that bore more than a passing resemblance to Mario Draghi's "unlimited" bond-buying pledge last year at the European Central Bank, the Chinese central bank promised to provide liquidity support to any financial institution strapped for cash. What is more, without naming any names, the central bank said it had already provided such support." (Financial Times)
Equities advance as China concerns abate: "Global equity and industrial commodity prices rebounded as the Chinese authorities sought to allay concerns about tightening liquidity conditions in the country's money markets. But US government bonds remained under pressure as robust data added to expectations that the Federal Reserve would soon start scaling back its support for the markets. China was at the heart of the day's market action as the Shanghai bourse followed through on Monday's 5.3 per cent slide for the Composite index with another steep retreat. But the index pared its decline to just 0.2 per cent as the People's Bank of China called a press conference for after the close of trade." (Financial Times)
