July TIC data showed that the flow of foreign funds into the US was already starting to dry up even before the proverbial hit the fan in August.
Just as important as the rate cut itself is the accompanying Fed rhetoric.
We may have seen the best in terms of economic growth in Australia, the latest Leading Index by Westpac-MI suggests.
The Fed cut the target rate and the discount rate by 50 basis points last night. The Dow rallied 336 points. The US dollar fell to a record low. Gold surged to a 27-year high. Oil surged to a record high. The Aussie jumped US2c.
Swift and decisive actions taken by the Bank of England and the British government are likely to have killed the global liquidity crunch, say GaveKal analysts.
In response to an ASX query, Sims group has cut first quarter profit guidance.
Increasingly bellicose rhetoric from Dick Cheney with respect to Iran helped to push oil and gold higher last night as Wall Street awaited the Fed.
While UK mortgage lender Northern Rock may have faced insolvency due to the global credit crunch, its own lending practices suggest it is hardly an innocent victim.
Guilt by association saw Macquarie’s share price fall by as much as 40% as the credit crunch hit, but a bemused investment conglomerate has countered with guidance of a 40% increase in first half profits.
DBS suggests throwing away the old maxim a 1% change in US growth meant a 2% change for Asia as the region is now driving more of its own growth and can better withstand a slowing in the US economy.
