Switzerland Sets Ceiling for Franc Switzerland took drastic action to protect its exporters by setting a cap on the franc’s exchange rate against the euro, roiling currency markets and setting itself up as a big buyer of euro-zone assets. The central bank said that with immediate effect it will no longer tolerate the euro trading below 1.20 francs.
Gold Hits New High Spot gold returned to record-breaking territory, as risk aversion and a steadying dollar provided the right ingredients for a renewed move toward $2,000 a troy ounce.
Europe Signals Global Gloom International financial markets tumbled as a darkening global economic outlook and deepening fissures in Europe over its debt crisis fueled fears the world economy could slip into a period of prolonged malaise.
European Stocks Rebound From Two-Day Tumble The Euro Stoxx 50 of the biggest euro-area companies rose 0.9 percent to 2,125.15 at 11:38 a.m. in London after tumbling 8.6 percent over the previous two days. The gauge declined 14 percent in August amid concern global economic growth is slowing as Europe’s debt crisis spreads.
Europe Bank Shares Drop Battered European banks suffered further steep share-price declines on Monday as investors grew more concerned about the banks’ access to funds.
Obama Mulls Tax Cuts Beyond Republican Plans In a speech to a union crowd in Detroit yesterday, Obama said he would challenge Republicans on taxes. “You say you’re the party of tax cuts?” Obama said before the annual Metro Detroit Central Labor Council rally. “Well then, prove you’ll fight just as hard for tax cuts for middle- class families as you do for oil companies and the most affluent Americans.”
Obama Speech: On Friday, Ed Henry quoted an unnamed presidential aide telling Fox News that while he didn’t want to “downplay the speech,” he needed to shoot down “the idea that this is the be-all and end-all.”
Fed ‘hawk’ Lacker says stimulus will only hit inflation Policymaker reveals extent of central bank divisions.
German Manufacturing Orders Fall German manufacturing orders fell sharply in July, initial data from the Economics Ministry showed. Seasonally-adjusted data for July showed new orders falling 2.8% compared with June. Foreign orders fell 7.4% on a monthly basis, while domestic orders increased 3.6%. The biggest monthly drop was in capital goods orders, which fell 7%, with foreign orders dropping 12.8% and domestic orders growing 3.6%.
Italy hit by anti-austerity strike The country’s largest labour union shuts down air, land and sea transport and curtailed other public services.
Italy: eurozone crisis decider If Italy becomes infected, the eurozone does not have the resources to rescue Rome.
Food Prices in China Continue Climb China’s food prices continued to rise last week with pork prices hitting a record high, signaling that inflationary pressures have yet to ease significantly.
World Bank Chief: Inflation China’s Top Concern World Bank President Robert Zoellick, on a visit to China, said inflation remains Beijing’s most pressing immediate concern.
Banks start mopping up more liquidity China’s commercial banks will put a total of 900 billion yuan ($140.79 billion) in reserve over the next six months starting Sept 5 as the government takes a new approach to mopping up market liquidity.