Economy & Markets
The important economic and stock market news that advisors need to know.
Is a December Rally Likely?—Searching for Alpha for December 2011
By Ben WarwickThe central bank-inspired rally may very well continue up through the end of 2011.
November 30, 2011
Eurozone Ministers May Seek IMF HelpAlthough eurozone ministers agreed Tuesday to boost the value of the rescue fund, they acknowledged that they might call on the International Monetary Fund for help to do so after Italy's borrowing costs soared nearly to 8%, a euro lifetime high.
November 30, 2011
China Cuts Reserve RatioIn a sign that China's red-hot economy is cooling down, for the first time in three years Beijing took the brakes off. China's central bank cut the required reserve ratio for the country's banks, in an action taken Wednesday that was designed to ease credit and boost economic activity.
November 30, 2011
Emerging Markets’ Growing Middle Class a Boon for U.S. Investors: Outlook 2012During the 2012 outlook season, investment strategists and other market watchers have repeatedly taken note of the growing middle classes in China, Southeast Asia, India and Brazil.
November 30, 2011
S&P Ratings Overhaul Hits Banks HardStandard & Poor's revamped its ratings criteria and lowered the ratings of 15 U.S. and European banks by one notch on Tuesday, leaving 20 more bank ratings unchanged and raising two by a notch apiece.
November 30, 2011
Fed’s Action Unblocks Eurozone’s Ventilator, but Patient Still Dying: News AnalysisA patient on life support uses a ventilator to get oxygen into his lungs, but the ventilator is partially obstructed. Removing the obstruction facilitates the patients breathingjust like the Fed has provided lending facilities for zombie banks on life support-but it does not treat the disease.
November 30, 2011
American Airlines Parent Files for BankruptcyAMR, the parent company of American Airlines and American Eagle, filed for Chapter 11 bankruptcy on Tuesday, citing its very substantial cost disadvantage compared with competitors and its labor costs. It had been the last of the legacy airlines to do so, and its action could affect the municipal bond...
November 30, 2011
World's Central Banks Act to Ease Market StrainsThe central banks of the wealthiest countries, trying to prevent a debt crisis in Europe from exploding into a global panic, swept in Wednesday to shore up the world financial system by making it easier for banks to borrow American dollars.