Stocks rallied amid growth in U.S. home sales, better-than-forecast earnings and speculation the European Central Bank will cut interest rates. U.S. equities recovered after briefly erasing gains following a false report of explosions at the White House.
European government bonds rose, with Italy’s two-year yields falling to a record, as euro-area output contracted for a 15th month in April, boosting speculation the region’s central bank will lower interest rates.
Divergent interests between Germany, the European Central Bank and private investors are delaying a solution to the euro region’s debt crisis, according to Brown Brothers Harriman & Co.’s Lena Komileva.
A strong euro will boost the risk of default in countries such as Portugal and threaten Europe’s monetary union as the region’s central bank prepares to raise interest rates, according to Brown Brothers Harriman & Co.
The new financial regulation law gives the Federal Reserve chairman the authority to force banks to raise capital and tighten lending -- just as he’s trying to steer monetary policy in the opposite direction.
In November 2009, Senate Banking Committee Chairman Christopher Dodd advanced a radical proposal: to create a super-regulator that would take over most of the bank supervision that had been done by the Federal Reserve System, the Federal Deposit Insurance Corp. and other agencies.
Lena Komileva, Chief Economist at G+ Economics and Christian Schulz from Berenberg Bank, spoke to Bloomberg's Manus Cranny about the ECB's latest interest rate decision. This interview aired on June 6 on `Last Word'. (Source: Bloomberg)
European Central Bank President Jean- Claude Trichet may allow Federal Reserve Chairman Ben S. Bernanke to avoid loosening monetary policy tomorrow by helping engineer a rebound in global financial markets.