Japan Central Bank Unexpectedly Targets Bigger Expansion of Monetary Base; Yen Drops

Japan Central Bank Unexpectedly Targets Bigger Expansion of Monetary Base; Yen Drops

Bank Of Japan aims for annual increase of 80 Trillion Yen in JGB holdings !

What a billion Yen used to look like ! Exchange rate drop and gold lower prices ,

The Bank of Japan buys around 2.5 of the below every month !!

Dollar increases on Fed rate rise bets

Warren Buffett: U.S. Federal Reserve is the ‘biggest hedge fund in history’

Equities are calm, taking in their stride the US central bank’s confirmation it is finishing the third multibillion-dollar asset purchase programme, or QE3, that many investors considered a crucial support for stock markets.

Gold is falling and short-term US bond borrowing costs are holding at three-week highs as traders bet the Federal Reserve may start raising interest rates sooner than the market had expected. The FTSE Eurofirst 300 is opening up 0.5 per cent and US index futures indicate the S&P 500 will add 2 points to 1,984, in line to leave Wall Street’s benchmark less than 1.5 per cent shy of its record close hit in September.

As the two-day meeting came to a conclusion last Wednesday, the Federal Open Market Committee not only announced the end of QE3 but also highlighted an improvement in the US labour market and gave itself room to raise rates if the country’s economy grows faster than it expects.

“The gradual Fed normalisation is a result of a strengthening economy,” said Gary Yau of Crédit Agricole.

But the Fed’s comments also have been deemed slightly more aggressive than investors had forecast, causing analysts to reconsider the timing for when US interest rates will start rising from record lows.

“With the rates market fully priced for October 2015 as the first Fed Funds hike, we expect this in part to be brought forward should US data remain on trend,” said Richard Cochinos, CitiFX G10 strategist.

“What has tripped the markets is the fact that there was no mention by the FOMC of recent financial volatility and no concern about the weakness of market inflation expectations,” said Lena Komileva, chief economist at G+ Economics.

“The Fed is clearly more confident about economic risks than investors are, which will add a risk premium to the market price of liquidity and volatility, via a stronger dollar and higher US rates,” she added.

Indeed, US bond prices took a dive in the wake of the Fed statement and those levels are mostly being held on Thursday. The US 10-year yield, which moves inversely to the price, is 1 basis point softer at 2.31 per cent and the more policy-sensitive 2-year yield is barely changed at 0.49 per cent, the highest in three weeks.

The dollar is stronger in response, its trade-weighted index up another 0.4 per cent to 86.24, placing it about 0.5 per cent below its highest level since June 2010.

Ferrari going to the stock market

Ferrari going to the stock market

According to breaking reports from The Financial Times, Fiat Chrysler Automobiles (FCA) plans to spin off Ferrari. 2015 will see the quintessential Italian sports car maker listed on US and European bourses. Most of the stock, 90%, will be going to the company’s shareholders, said the firm while giving their statement earlier today, with another 10% being sold to the public.

FCA chairman John Elkann said that the move to have Ferrari stand on its own two feet would “preserve the cherished Italian heritage and unique position of the Ferrari business and allow FCA shareholders to continue to benefit from the substantial value inherent in this business”.

Luca Cordero di Montezemolo, the longstanding former Ferrari chairman blamed for the poor performance in Formula One, bowed out of his position last month. FCA chief executive Sergio Marchionne has since stepped into the role.

The IPO announcement came as part of a package of measures aimed at reducing the €11.4 billion of net industrial debt being carried by the carmaker. It also needs to finance a planned $60 billion product offensive.

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‘No one remembers who took second place and that will never be me ‘ Enzo Ferrari

Great minds discuss ideas; average minds discuss events; small minds discuss people. Eleanor Roosevelt

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You only live once ? FALSE you live every day you only DIE once

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Life is about kicking ass not kissing it

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Get it through your head first impressions last , you start behind the eightball you never get in front

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