Stocks edged forward; the S&P 500 rose 0.4 per cent to 1,585.16 as weekly jobless claims improved, and corporate earnings continued to come in ahead of expectations (Reuters).
US bankers have begun to support European peers against Fed plans to impose tighter capital requirements on their US operations. Executives from JPMorgan and Goldman have pressed policymakers on the proposal for foreign banks' US subsidiaries to hold a minimum level of 7 per cent core capital to risk-weighted assets by 2015. Other US banks fear the rise of "Balkanised" regulation around the world (Financial Times). Liquidity rules proposed by the Fed have also drawn the ire of European banks (New York Times).
George Soros took a 7.9 per cent stake in JCPenney. Shares in the retailer jumped 6.3 per cent after hours following the announcement (Financial Times). The stake would make Soros the fourth-largest shareholder in JCP (Bloomberg).
Amazon's margins widened despite a drop in profit. First-quarter net income fell 37 per cent to $82m year on year, although revenues increased 22 per cent to $16.1bn, keeping their rate of growth from the previous quarter (Reuters, Financial Times). The online retailer, known for its occasional capital-spending blitzes on warehouses, data and digital devices, forecast revenues of $14.5bn in the second quarter.
The CBOE was forced to delay its trading open for several hours. Its market for S&P 500 options contracts opened at 12:50pm eastern time following a "software glitch" affecting both floor and electronic trading (Wall Street Journal).
Angela Merkel made an unusual foray into eurozone interest-rate policy. "The ECB is obviously in a difficult position," the German chancellor said in a speech in Dresden. "For Germany, it would actually have to raise rates slightly at the moment, but for other countries it would have to do even more for more liquidity to be made available and especially for liquidity to reach corporate financing." The ECB meets next week to decide on whether to cut rates (Financial Times).
FURTHER FURTHER READING
- The FSOC annual report.
- Paul Krugman not too sure Paul Krugman's taken over the world just yet.
- Why the UK shouldn't go Keynesian.
- The empty-billboard economy.
- Macon Money (the anti-Bitcoin?)
- Janet Yellen, metaphorist.
- A QRM Q&A -- and are down payments the issue?
