Week Sept 16 2011 – Weekly Recap & The Week Ahead
“Do you know the only thing that gives me pleasure? It’s to see my dividends coming in”John D. Rockefeller
1. Talks of China to make investment in Italy — The Wall Street Journal and Financial Times said Italy’s finance minister met last week with a delegation of Chinese officials — including the head of China’s sovereign-wealth fund — in an attempt to persuade Beijing to buy a large amount of Italian sovereign debt.
2. Moody downgraded French banks — Moody’s downgraded Credit Agricole’s (CRARY.PK) credit rating to Aa2 from Aa1 and Societe Generale’s (SCGLY.PK) to Aa3 from Aa2, but maintained its Aa2 rating on BNP Paribas (BNPQY.PK), saying the bank’s “profitability and capital base currently provide an adequate cushion to support its Greek, Portuguese, and Irish
3. Treasury to Accommodate Fed on ‘Twist’ — according to sources, “Operation Twist”, the central bank would buy more longer-term Treasury securities to drive down long-term interest rates by reducing the amount of such debt available to other investors. Operation Twist is one of a number of options the Fed will consider when it next meets on Sept. 20.
4. Central Banks Pour Dollars Into Europe — The European Central Bank said it would coordinate with the U.S. Federal Reserve, Bank of England, Bank of Japan and Swiss National Bank to ensure banks unlimited dollar funding through the end of the year to quell fears that the region’s lenders could fall victim to the euro-zone’s government debt crisis.
5. Economists say recession more likely — A WSJ poll of 53 economists sees a 1-in-3 chance – the highest ratio since the start of the recovery – of the economy slipping into recession over the next year.
The week ahead — Economic data from Econoday.com:
