Latest economy news from Europe: wages up the U.K G.N.P grow stronger in France and Italy (which might be pulling out of it's recession) then Germany.
China wants banks to cut interest rates, however, also want higher capital tier one rates like so many governments the policy wants two different things: banks to lend out more, however also tie banks hand by demand a higher amount of capital be kept by the bank-the U.S has same policy as do many other counties.
Until last few days much talk that Germany bond would have negative yield. I believe no matter the
rush to safety negative rates ain't going cut it with investor. With low interest rate stocks are best game in town, a good stock can pay more then interest or bond in yield and if company has good balance sheet, grows earnings, pays out less then 50 percent in earning, then that stock will increase dividends over years and you yield will be greater then today.
Bank of England head, who is Canadian, says interest rates will be raise very slowly and with due care.
No comments:
Post a Comment