London headquarters. I am francine lacqua. Decision not to hike Interest Rates last thursday. Morning that the euro may fall. Lets get some Quick Reaction from andrew parry, he is head of equities. He manages 29 billion pounds in assets. Thank you for joining us. Andrew, your first quick thoughts. We disappointed that the fed did not take that window to hike rates . Andrew you can see in the markets reaction that everybody disappointed, even though it was expecting them to raise rates. How the markets reacted was a clear statement. That was the frustration. Is the message that they are sending in the dumbest comment. Is it the conditions that are worrying . Francine are you worried about china . A focus on m a for example. Andrew we try to focus on the bottom up. Statement,ays a economic start to admit as statistic. Statistic. A broad direction of travel is important. Thats what the market is reacting to with the fed. Did they leave us hanging . Thats been a long period we have been an
Lets speak to our editor in frankfurt. Paul if there is a surprise and here, it would be the number of hedge funds the ecb executive members have been using. The list goes on. Some people may be raising an eyebrow and thinking, who gets the most set of these meetings . The ecb or the hedge funds . The concern is out there in the market. To ecb has been struggling correct the perception. Those hedge funds have been getting unfair access dating back to the inadvertent release of information back in may. They may 18, when disclosed sensitive market information. There were new guidelines issued october 6. What are the tricky guidelines balance . You want them to understand exactly what is going on out there. There needs to be some balance. They need to say the right things at the right time to the right group of people. Paul it is a matter of perception, balanced against getting the right people. Look at december 31 bc be ecb announced policy stimulus. The markets misunderstood what they w
The ruble plus fall. Almost 11 butd turned again, plunging to an alltime low of 79 to the dollar. Oil resumed its plunge as well. West texas intermediate brent trading above 60, both of those five years. In sydney, australia, the hostage siege ended in a deadly shootout. The gunman was a selfproclaimed islamic eric cleric from iran. Here is the us join prime australian the Prime Minister, tony abbott. Not only us in australia but tens of hundreds of millions of ple around the world sydney has been touched by terrorism for the first time in years. The mans former lawyer said it was unlikely he was involved in terrorism as part of a group. He was acting alone. In pakistan, and attack by the taliban on a school. 126 people killed, many of them students. A taliban spokesman said that the attack was in retaliation for the killing of taliban tribal members. And they take over in the oil business. Of a takeover in the oil business. All has agreed to buy repsol has agreed to buy talisman energ
Guest that he could not raise the adequate amount of wheat that he wanted to. Because the government had decided they were going to control wheat plantings. And so what he said was, okay, then i can raise wheat for my chickens. And he took it all the way to the Supreme Court and lost that battle. Host why do you recount that story in the debt bomb . Guest because its a great example on the enumerated powers and the unwinding why do we find ourself in the place were in now . Howd we get here, what do by we do about it, and what are the ramifications . The greatest way for the government to make something expensive is for the government to make it affordable. And all you have to do is look at the programs. What were the average inflationary costs of health care before we created medicare and medicaid . They ran the same as every other aspect of our inflation. In other words, there was no differential between Health Care Costs. Now that we have a government program, what has happened is H
A further 2 hikes in may and june 2 point 75 percent. Then to 1. 5 percent. Well, easy b rates just stay the same. That was until now with this height of 50 basis points or half a percentage point. Now for more on this, lets hear from our financial correspondent in frankfurt. Asher talked pam de, i asked him, how much pressure the ac b was under to hike . Rates were tremendous. A tremendous pressure and i again bet you know that he wouldnt want to be increasing luggage shoes at this point in time. I got to understand and you mentioned that most of the Central Banks are the peers of e. C. B have already raised their rates and theyve said theyve reached at 3 or 4 times on an average, including the federal reserve, which went ahead with a 75. 00 basis point a mammoth height i just last month. And it might just do again, a 75 basis points. So clearly the inflation is that record high. This is, it is a territory that e, c, b has never experience. And its certainly going to actually, it will