* Fed expected to halve rates, signal unorthodox steps
* Bank of Japan seen pumping money
* European activity shrinks, car sales dive
* Goldman quarterly loss expected (For full crisis coverage, double click on [nCRISIS])
By Alister Bull and Keith Weir
WASHINGTON/LONDON, Dec 16 (Reuters) - The U.S. Fed appeared set to halve interest rates on Tuesday and bring them within sight of zero and Japan was weighing steps to ease funding when borrowing costs have been cut to the bone.
In Europe, manufacturing and services activity in the euro single currency area sank to new lows in December, a survey showed, pointing to a deepening recession and prompting talk of an interest rate cut next month. [ID:nLG637396]
European new car sales dropped by a quarter in November and manufacturers scaled back production. [ID:nLG401815]
Responding to the worst financial crisis in 80 years, the Federal Reserve is expected to cut its benchmark rate by at least half a point to 0.5 percent, its lowest in more than half a century.
As it runs out of room for further rate cuts, the Fed is likely to promise to look at other instruments to pull the world's biggest economy out of recession. [ID:nN15524666]
JAPANESE EXAMPLE
The Fed may take a leaf out of the Japanese economic textbook.
In Japan, where rates are already at an ultra-low 0.3 percent, the finance minister urged the central bank to also take unorthodox steps to ease a funding crunch.
Bank of Japan Governor Masaaki Shirakawa said he was studying possible effects of so-called quantitative easing, a policy of flooding banks with zero interest money, which Japan adopted early this decade to spur lending and jump-start a stagnant economy. [ID:nT140538]
Economists expect the Fed to acknowledge it will have to resort to direct purchases of government and mortgage-related debt and possibly Japanese-style money injections. Continued...
* Bank of Japan seen pumping money
* European activity shrinks, car sales dive
* Goldman quarterly loss expected (For full crisis coverage, double click on [nCRISIS])
By Alister Bull and Keith Weir
WASHINGTON/LONDON, Dec 16 (Reuters) - The U.S. Fed appeared set to halve interest rates on Tuesday and bring them within sight of zero and Japan was weighing steps to ease funding when borrowing costs have been cut to the bone.
In Europe, manufacturing and services activity in the euro single currency area sank to new lows in December, a survey showed, pointing to a deepening recession and prompting talk of an interest rate cut next month. [ID:nLG637396]
European new car sales dropped by a quarter in November and manufacturers scaled back production. [ID:nLG401815]
Responding to the worst financial crisis in 80 years, the Federal Reserve is expected to cut its benchmark rate by at least half a point to 0.5 percent, its lowest in more than half a century.
As it runs out of room for further rate cuts, the Fed is likely to promise to look at other instruments to pull the world's biggest economy out of recession. [ID:nN15524666]
JAPANESE EXAMPLE
The Fed may take a leaf out of the Japanese economic textbook.
In Japan, where rates are already at an ultra-low 0.3 percent, the finance minister urged the central bank to also take unorthodox steps to ease a funding crunch.
Bank of Japan Governor Masaaki Shirakawa said he was studying possible effects of so-called quantitative easing, a policy of flooding banks with zero interest money, which Japan adopted early this decade to spur lending and jump-start a stagnant economy. [ID:nT140538]
Economists expect the Fed to acknowledge it will have to resort to direct purchases of government and mortgage-related debt and possibly Japanese-style money injections. Continued...
Vil det ikke andet lige får dollaren til at stige?
16/12 2008 17:29 le 0
640 jeg ved ikke rigtigt hvad der påvirker dollaren
udover at den var faldet for meget
og er steget igen
fordi usa og dollar stadig er safe heaven for folk og lande der har investeret i emerging markets
så jeg har ingen klar holdning til dollarens retning udover at jeg ikke tror den vil ændre sig meget
udover at den var faldet for meget
og er steget igen
fordi usa og dollar stadig er safe heaven for folk og lande der har investeret i emerging markets
så jeg har ingen klar holdning til dollarens retning udover at jeg ikke tror den vil ændre sig meget
