Risk Aversion News
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Central banks should be careful what they say about the future if they want flexibility to set monetary policy.
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Dan Loeb, the hedge-fund manager who successfully pushed for an executive shakeup at Yahoo! Inc., is taking his activism overseas for the first time with a $1.1 billion stake in Sony Corp., seeking change in a country where few U.S. investors have succeeded with that approach.
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Following is a transcript of European Central Bank President Mario Draghi’s comments from his monthly news conference in Bratislava today:
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The world’s biggest bond fund is missing out on some of the best returns in global debt markets as it shuns the longest-maturity gilts, having branded Britain a “must to avoid” in 2010.
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European Central Bank Executive Board member Joerg Asmussen said an interest-rate cut wouldn’t have much effect in some countries as the transmission of monetary policy is impaired.
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Australia’s bond yields slid to the lowest this year as bird influenza in China, tension surrounding North Korea and signs of a slowing U.S. economy boosted demand for the safety of government debt.
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The widening yield gap between 10- and 30-year German government securities suggests recent gains in Spanish and Italian bonds may prove unsustainable.
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Indian stock-index futures rose, signaling stocks may extend the biggest weekly increase in more than four months.
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Shareholders of Commerzbank AG, Germany’s second-biggest bank, may be the most furious in Europe after the stock tumbled more than any other bank outside crisis- hit Ireland and Greece.
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Slovenia needs to bolster the confidence of market investors in the Alpine country to raise enough cash to repay debts, plug budget holes and cover the cost of bank restructuring, a UBS economist said.
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