World's largest bond house, PIMCO, braces up for euro zone debt and writes down as revival disappoints. Managers here believed that the ECB was reviewing itsrole in money markets after months of recession.
Ratings agency Standard and Poor's downgrade of Spain's credit rating Thursday for the second time this year highlights the fact that austerity alone is not enough to tackle the eurozone debt problem.
Gerard Minack of Morgan Stanley tells CNBC-TV18 that only ECB has the firepower to salvage EU. “The market is very skeptical about the IMF being able to play a key role,” he says.
Reserve Bank of India (RBI) Governor D. Subbarao said on Friday it was important to bring down inflation to sustain growth and that it was too early to signal a change in monetary stance, suggesting the central bank may not be done with monetary tightening.
A Greek tragedy may have been averted, but now the euro-zone is grappling with the Italian job. On the other side of the pacific, the US is said to be mulling QE3.
Gold closed slightly lower on Monday, easing after an early rally to within USD 10 of its record, as signs of US manufacturing growth prompted selling.