posted by 4x-news on Feb 18

The Israeli Shekel has surged over 15% against the USD in the last 6 months, and by over 20% in the last 2 years. Analysts have suggested that the appreciation is due to the strength of Israeli’s economy vis-a-vis the US economy, which seems headed for recession. In addition, Israeli people have repatriated billions of dollars in capital that had been held overseas and invested it in Israel’s financial markets, which in itself, has exerted much of the pressure on the Shekel. There is now a surplus in the balance of payments, which means more capital is coming in to Israel than is being taken out. As a result, Israeli exporters are getting nervous about the perceived consequences of a relatively expensive currency and are pressuring Israeli political leaders to take action. The Central Bank, understandably, is reluctant to do so. Haaretz.org reports:

“Intervening in the currency market is risky and inefficient,” [said] Bank of Israel Governor Stanley Fischer…earlier this week.

posted by 4x-news on Sep 16

ews that Northern Rock has had to go to the Bank of England for emergency loan funding sent shockwaves through already nervous financial markets today.Shares in London tumbled by 140 points at one stage, although with signs of resilience on Wall Street this afternoon the FTSE halved earlier losses to close 74.6 points lower at 6289.3, a fall of 1.2%.

On Wall Street, US investors took fright at further signs of the sub-prime contagion spreading to Britain and prices fell throughout the financial sector, including investment bank Bear Stearns, one of the biggest US casualties of the sub-prime crisis, and Countrywide Financial, America’s largest mortgage lender.

Despite weaker than expected retail sales data across the Atlantic, the Dow Jones Industrial Average saw an early fall of 100 points cut to just 4.1 points, and stood at 13,420.82 by the time the London market closed.

The gloom was deepened by official data showing an unexpected drop in US retail sales last month. Analysts said the weaker-than-expected figures will raise the pressure on the US Federal Reserve bank to cut interest rates by 50 basis points when it meets next week.

“This growing evidence that the economy is slowing down rather dramatically and is going to conjure up increased fears of the ‘R’ word, being recession, rather than economic recovery,” said Al Goldman, chief strategist at A G Edwards.

Sterling fell to its lowest level against the euro in 14 months, at almost 69 pence, and fell two cents against the dollar to around $2.01.

US sales, excluding cars, fell 0.4% in August, the biggest decline for nearly a year, the Commerce Department said.

The August sales report showed declines from a range of other retailers. Clothing store sales slipped 0.1%, building materials and garden supply store sales fell 1.0%, and department store sales dropped 0.2%.

Meanwhile a Federal Reserve report showed that industrial production rose by a smaller-than-expected 0.2% in August as both manufacturing and mining output fell.

“The manufacturing recovery already looks to have been faltering even before the impact of the credit crunch hits,” said Jonathan Loynes at Capital Economics. “Overall, a disappointing report that adds to the economic reasons for lower interest rates.”

By the close, Northern Rock shares were down 31.5% to 438p, wiping £846m off its stock market value. The shares were already down by 50% this year.

Losses were widespread in the banking sector, with specialist buy-to-let lender Paragon one of the biggest casualties. As its shares tumbled, it attempted to reassure investors, saying it had no need to resort to the Bank of England in order to continue trading.

Alliance & Leicester also issued a statement saying it remained largely unaffected by the global liquidity crisis, saying it was “far less reliant than Northern Rock for funding from the world financial markets”.

posted by 4x-news on Sep 1

AP) - Major business events and economic events scheduled for the coming week (some dates are tentative): MONDAY, Sept. 3

Labor Day. U.S. financial markets are closed.

TUESDAY, Sept. 4

WASHINGTON — Commerce Department reports on construction spending for July; Treasury bill auction.

NEW YORK — The Institute for Supply Management issues its report on activity in the manufacturing economy for August.

DETROIT — Automakers release their sales figures for August.

WEDNESDAY, Sept. 5

WASHINGTON — Federal Reserve releases survey of regional economic conditions, 3 p.m.

THURSDAY, Sept. 6

NEW YORK — The nation’s largest retailers announce their sales figures for August.

NEW YORK — The Institute for Supply Management issues its report on activity in the non-manufacturing economy for August.

WASHINGTON — Labor Department reports on productivity and costs, second quarter, revised; Labor Department reports on weekly jobless claims; Freddie Mac, the mortgage company, reports on mortgage rates.

CAMDEN, N.J. — Campbell Soup Co. reports fourth-quarter financial results.

RED BANK, N.J. — Hovnanian Enterprises Inc. reports third-quarter financial results.

SAN DIEGO — SAIC Inc. reports second-quarter financial results.

FRIDAY, Sept. 7

WASHINGTON — Labor Department reports on employment for August.

MONDAY, Sept. 10

WASHINGTON — Federal Reserve reports on consumer credit for July.

TUESDAY, Sept. 11

WASHINGTON — Commerce Department reports on international trade for July.

WEDNESDAY, Sept. 12

Nothing scheduled.

THURSDAY, Sept. 13

WASHINGTON — Labor Department releases weekly jobless claims; Treasury Department issues budget statement for August; Freddie Mac issues weekly mortgage rate report.

FRIDAY, Sept. 14

WASHINGTON — Commerce Department issues retail sales for August, current account for second quarter, business inventories for August; Federal Reserve issues industrial production for August;

DETROIT — United Auto Workers’ national contracts with the Detroit Three domestic automakers expire.

MONDAY, Sept. 17

WASHINGTON — Treasury auction.

TUESDAY, Sept. 18

WASHINGTON — Labor Department issues Producer Price Index for August.

WASHINGTON — Federal Reserve meets to set interest rate policy; announcement expected around 2:15 p.m.

CINCINNATI — Kroger Co. reports second-quarter earnings.

WEDNESDAY, Sept. 19

WASHINGTON — Labor Department issues Consumer Price Index for August; Commerce Department releases housing starts for August.

THURSDAY, Sept. 20

WASHINGTON — Labor Department releases weekly jobless claims; Freddie Mac issues weekly mortgage rate report.

NEW YORK — Conference Board reports its monthly Leading Economic Indicators Index, 10 a.m.

FRIDAY, Sept. 21

Nothing scheduled.

MONDAY, Sept. 24

WASHINGTON — Treasury auction.

TUESDAY, Sept. 25

WASHINGTON — National Association of Realtors releasese existing home sales for August.

NEW YORK — Conference Board reports its monthly Consumer Confidence Index, 10 a.m.

WEDNESDAY, Sept. 26

WASHINGTON — Commerce Department reports on durable goods for August.

THURSDAY, Sept. 27

WASHINGTON — Commerce Department reports on gross domestic product for second quarter, new home sales for August; Labor Department reports weekly jobless claims; Freddie Mac issues weekly report on mortgage rates.

FRIDAY, Sept. 28

WASHINGTON — Commerce Department reports on personal income and spending, construction spending for August.