Week Oct 8 2010 – Weekly Recap & The Week Ahead
1. Bank of Japan cuts interest rate to near zero — the Bank of Japan surprisingly announced a $418 billion monetary easing program while cutting interest rates to virtually zero.
2. Q3 Profits Expected To Rise 24% — Alcoa provided a strong unofficial kickoff to earnings season late Thursday, reporting Q3 profit that more than doubled vs. a year earlier, beating views.
3. Retailers reported stronger-than-expected September sales Thursday, buoyed by a late surge in back-to-school buying.
4. Japan open to further forex intervention — Japanese Finance Minister Yoshihiko Noda said last month’s intervention in currency markets wasn’t a sign that Japan is prepared to conduct large-scale interventions to guide the yen to a specific level. However, he kept the door open to “firm measures, including intervention, when needed.”
5. Moody’s considers China upgrade — Moody’s said this morning it may upgrade its A1 rating on Chinese government debt, citing the nation’s growth outlook, the “determined and effective” stimulus program enacted during the financial crisis, and the “likely containment” of risks associated with 2009’s credit expansion.
The week ahead — Economic data from Econoday.com:
