| Titian's 'Diana and Actaeon' Comes to Atlanta "Diana and Actaeon" comes to Atlanta's High Museum of Art. online.wsj.com |
Dollar sinks further against yen, euro and Australian dollar Markets believe Federal Reserve will announce further quantitative easing for US economySpeculation that the US Federal Reserve could be about to launch a second phase of quantitative easing (QE), creating billions of dollars to reignite the world's largest economy, pushed the US currency down to a 15-year low against the yen today.Investors fear that a possible massive programme of bond purchases by the Fed will flood the financial system with dollars, eroding the dollar's value.The dollar fell 0.8% against the euro, trading at $1.40, and 0.4% against the yen, changing hands at less than Â¥81, the lowest level since 1995.The Australian dollar, backed by the growing strength of the country's abundant commodities, such as iron ore and coal, edged ever closer to parity with the dollar, touching an all-time high of $0.994."The dollar remains under pressure amid continued concerns as to the state of the US economy and the prospect of further quantitative easing," said Jason Gaywood, senior consultant at Forex.com. "Meanwhile, the euro continues to surge forward as investors shed earlier concerns about public sector debt."Money also rushed into alternative assets, pushing gold, silver and palladium to record levels. Gold, which has gained 25% this year, traded at an all-time high of $1,388.10 an ounce, while silver reached a 30-year high after gaining 4%, to $24.90 an ounce.Today's decline in the dollar came as investors speculated that Federal Reserve chairman Ben Bernanke could use a speech in Boston tomorrow to give more details about the Fed's future plans. He has already said further market intervention could help the US economy.The dollar also fell 0.7%, to $1.60, against sterling, although analysts said the pound's rise would not have a great effect as it is on a downwards trend against the euro."The pound is playing piggy in the middle between a falling US dollar and surging euro, leaving British importers and exporters in limbo," Gaywood said. "Sterling is being simply a passenger in these moves as traders focus on the respective merits of the US and eurozone economies."Foreign exchange, credit and equity markets have been on a rollercoaster so far this year on concerns that the US may fall into a double-dip recession.Speculation of a new round of QE rose after the US labour department said that first-time applications for unemployment benefit increased last week, and as new figures revealed that the US trade deficit had widened.In addition to the Australian dollar, other currencies benefited from the dollar's weakness, especially those of emerging-market countries with positive economic growth. "Given current conditions, we think the highest probability is that emerging market currencies will appreciate versus the US dollar," said Pimco, the world's largest bond investor.CurrenciesQuantitative easingDollarBen BernankeUS economyEconomicsUnited StatesElena Moyaguardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds guardian.co.uk |
Bank of America posts $7.7B loss on special charge By PALLAVI GOGOI and STEPHEN BERNARD 2010-10-19T14:39:17ZNEW YORK (AP) -- Bank of America Corp. said Tuesday it lost $7.65 billion during the third quarter due to a charge related to credit and debit card reform legislation passed over the summer.... hosted.ap.org |
Outsourcing Ads Alienate Some Voters Democratic attacks on outsourcing are alienating Indian-Americans, who believe India is unfairly blamed for the decline of U.S. manufacturing jobs. online.wsj.com |
US embassy cables: hanging North Korea out to dry | Editorial If the leaked cables are read and absorbed by Pyongyang, they may instil realism in a dictatorship so clearly lacking itThe US secretary of state, Hillary Clinton, last night attempted to limit the damage caused to US diplomacy by the leaking of US embassy cables, which she claimed both endangered the lives of real people – who were used as sources by US diplomats – and tore at the fabric of proper international discourse. Within a few moments of the condemnation, Ms Clinton found herself referring to the contents of the cables as backing for US sanctions on Iran. She said that anyone reading the cables would see that Iran did pose a threat and that its Arab neighbours were concerned about it. Ms Clinton thus elegantly had her cake and ate it – in the same breath attacking the dangerously irresponsible exposure of information while also welcoming evidence that US policy on Iran had wider regional support than was earlier realised. Between the two moments, Ms Clinton also issued a muted apology for the leaks. If anything endangered confidential informers, it was the decision to disseminate their information on an intranet with a potential audience of 3 million.Nor should we axiomatically accept that the release of this information is harmful. Today's revelation from the embassy cables that North Korea had lost its strategic value to China as a buffer state between their forces and US ones, and that Beijing would accept the reunification of the peninsula under Seoul's leadership, should send shivers down the spine of the right person – the ailing dictator Kim Jong-il. Pyongyang could be about to lose its only insurer. Long before last week's lethal shelling of a South Korean island, it is clear from the private views of senior Chinese officials that their strategic asset had turned into a major liability.South Korea's vice foreign minister was told by two named Chinese officials that they believed Korea should be reunified under Seoul's control; a Chinese ambassador called North Korea's nuclear activity a threat to the whole world, and China has already calculated how many refugees it could take in from North Korea before closing its borders. This nugget alone should give Pyongyang greater pause for thought than any military exercise near its shores. The implication is clear: as long as US troops stay south of the demilitarised zone that bisects the Korean peninsula, China would not stop the regime collapsing after the death of Kim Jong-il. It had already, in their view, collapsed economically and, despite efforts to secure a succession to the inexperienced youngest son Kim Jong-un, it was likely to collapse politically. If the leaking of these cables was read and absorbed by North Korea's ageing generals, this would be an example of disclosure instilling realism into a military dictatorship which so clearly lacks it. China is currently attempting to mediate a return to the six-party talks, after the latest military clashes. There is clearly a length to the leash China has already allowed North Korea, and Kim Jong-il may already have reached it. The Iranian president, Mahmoud Ahmadinejad, also reacted cautiously to the news that Gulf states were privately cheering on a military strike on Iran's nuclear facilities. And for good reason. A rupture with his neighbours in the Gulf Arab states is the last thing he needs. Neither the leaks nor his reaction make a military strike more likely. Rather, there is a convergence of views that would make a military strike less likely over time.Diplomats do not do anything more or less than journalists. They, like us, are as good as their sources. They, like us, have a habit of believing their own stories. They, too, exchange gossip and pride themselves on being in the swim of things, but too often find themselves overtaken by events. By the same token, it would be foolish to dismiss their judgments out of hand. Their tradecraft will not come crashing to a halt as a result of these disclosures. It will continue, more cautiously than before, and perhaps that is no bad thing.North KoreaThe US embassy cablesChinaUnited StatesWikiLeaksSouth KoreaHillary Clintonguardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds guardian.co.uk |