The pound fell for a second week versus the dollar as speculation the Federal Reserve is moving closer to ending its program of asset purchases boosted the U.S. currency against its major peers.
European stocks rose for a fourth week as earnings from Cie. Financiere Richemont SA to ICAP Plc beat analyst estimates and the Bank of England lifted its growth forecast for Europe’s third-biggest economy.
The pound fell against the dollar, extending a second weekly decline, as speculation the Federal Reserve is moving closer to ending stimulus boosted demand for the U.S. currency.
Bank of England policy maker Martin Weale said the risk that adding stimulus will fuel inflation expectations limits the bank’s room to aid growth.
Central banks should be careful what they say about the future if they want flexibility to set monetary policy.
Swiss stocks declined from their highest level since January 2008 as Zurich Insurance Group AG reported earnings that missed analysts’ estimates.
Job vacancies at London’s financial- services companies fell 22 percent last month as a weak economy curbed hiring, according to a recruitment firm’s survey.
U.S. stocks rose, pushing benchmark indexes to fresh records, as data showing weakness in manufacturing fueled bets the Federal Reserve will be in no hurry to scale back stimulus.
Bank of England Governor Mervyn King said Europe’s planned financial transactions tax is regarded with “enormous” skepticism by central banks in the region.
Chancellor of the Exchequer George Osborne vowed to stick with his budget-consolidation plans amid signs of an improvement in the British economy.
"I can understand why at least some politicians feel reluctant to express their true skepticism about the merits of this idea in public."
- Mervyn King on May 15, 2013
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