The Markets Just Got A Double-Dose Of Central Bank 'Oomph' | ||
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The world's central banks aren't done using their words and actions to stimulate the economy. Friday came with two big central bank gestures that rocked the global markets. The first big move came from European Central Bank President Mario Draghi, who spoke to a banking conference in Frankfurt at around 3:30 a,m. ET. "It is essential to bring back inflation to target and without delay," Draghi said. "We have to be very watchful that low inflation does not start percolating through the economy in ways that further worsen the economic situation." The euro immediately tanked on Draghi's dovish words (see chart above). The second big move came from the People's Bank of China, which announced interest rate cuts at around 5:30 a.m. ET. This was the first time the PBoC cut rates since July 2012
As you can see to right, the Aussie dollar — a proxy for the Chinese economy — made a huge move. Both of today's actions come in the wake of accumulating signs of deterioration in the European economy and the deceleration in the Chinese economy. "China's once-famous growth rates have dropped, and the government is now pursuing a 7.5% annual rise in GDP. Some economists think even that rate is unrealistic," Business Insider's Mike Bird noted. Societe Generale analysts note that this may not be the end of it either. "[T]he onus will be on central bankers to provide some oomph for markets going into the weekend," they wrote. "The BoE’s MPC member Miles, Federal Reserve board member Tarullo and San Francisco Fed President will all deliver speeches today while ECB Vice President Constancio will deliver a speech on monetary policy on Saturday." For now, markets are ripping higher. Dow futures are up 110 points and S&P futures are up 12 points. SEE ALSO: GOLDMAN: Here Are The 10 Big Market Stories That'll Dominate 2015 Join the conversation about this story »  | ||
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The one-year deposit rate just got cut 0.25 points to 2.75%, and the refinancing rate was slashed 0.40 points to 3.60%. Wigan chairman Whelan accused of anti-Semitism | ||
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London (AFP) - Wigan Athletic chairman David Whelan was on Friday accused of anti-Semitism as the fall-out of the club's controversial hiring of manager Malky Mackay continued. Mackay was hired by Wigan this week just three months after the Football Association revealed they were investigating text messages, sent during his spell in charge at Cardiff, which he admitted were "disrespectful" of other cultures. Mackay's arrival at English second-tier strugglers Wigan prompted one of the club's shirt sponsors to end their support of the side on Wednesday. Now the FA are being urged to investigate comments 77-year-old Whelan was quoted as telling The Guardian. Whelan claimed he saw little offence in one of the Mackay texts which, referring to the Jewish football agent Phil Smith, allegedly read: "Nothing like a Jew that sees money slipping through his fingers." Whelan, the paper wrote, said: "The Jews don't like losing money. Nobody likes losing money." Jewish Leadership Council chief executive Simon Johnson, a former FA and Premier League executive, wants the governing body to investigate. Johnson told Britain's Press Association: "I want the FA to look into this as a matter of urgency and to make sure it is not swept under the carpet to show that they are determined to kick racism out of football. "Unfortunately these type of comments by Mr Whelan and Mr Mackay are using some of the worst old-fashioned, lazy and offensive racial stereotypes which have been used in the past as the basis for some quite vile anti-semitism." Whelan has since apologised for any offence caused, saying he had been misquoted. But the main representative body of British Jews has called his comments "outrageous" and labelled his apology as "half-hearted". The Board of Deputies of British Jews vice-president Jonathan Arkush said in a statement: "Dave Whelan's comments about Jews are outrageous and offensive, and bring the club and the game into disrepute. "His half-hearted apology does not go far enough. You cannot insult a whole group of people, and then say, 'I would never insult them', and hope that's OK. "We will be taking up the matter with the Football Association and Kick It Out." Whelan received support from Hull manager Steve Bruce, who managed Wigan twice under Whelan's watch. "Maybe sitting on the fence might be the easiest thing to do but I've worked under Dave Whelan twice - I know him very, very well," said Bruce. "There's no racism in him at all. Sometimes words can be said which can be misplaced, they can be out there in the public domain, but certainly when I've worked with him there's been no sign of racism. "He is without question one of the best chairmen I've worked for. What you see is what you get." Join the conversation about this story »  | ||
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UN blasts Thai junta for 'Hunger Games' detentions | ||
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Bangkok (AFP) - The United Nations criticised Thailand's junta Friday for detaining people caught throwing a three-fingered protest salute inspired by "The Hunger Games" movies, as the prime minister warned that people using the defiant gesture could "jeopardise their future". The salute has become the unofficial symbol of resistance against the army's May coup with scores detained for using it, including six students this week. The same gesture is used in the fictional Hollywood blockbuster franchise by rebels fighting against a dictatorial regime. General Prayut Chan-O-Cha, the prime minister, said he felt unthreatened by such protests but warned those caught using the gesture risked creating problems for themselves. "I'm not concerned by the three-finger protest," the junta chief told reporters Friday. But he added ominously: "I don't know whether it is illegal or not but it could jeopardise their futures." His comments came as the UN Human Rights Office for South-East Asia (OHCHR) criticised the authorities for a recent spate of instances where people were led away for questioning after making the salute. "This case is the latest illustration of a worrying pattern of human rights violations, which has the effect of suppressing critical and independent voices," local OHCHR representative Matilda Bogner told AFP. On Thursday a female university student was detained by plainclothes officers outside an upmarket mall in Bangkok for flashing the salute in front of a large publicity poster for the film. A day earlier five students were briefly held by the military for flashing the three-finger sign during a speech by Prayut in the northeastern province of Khon Kaen. All have since been released. "I don't want to punish them (the students) so they were merely reprimanded, released and told not to do it again because it's of no benefit to anyone," Prayut said.
- Cinemas refuse to show film -
Some cinemas in Thailand have cancelled screenings of the film. Set in a dystopian future, it stars Jennifer Lawrence as the survivor of a bloody reality TV contest who goes on to become a rebel leader that topples a totalitarian state. But Thailand's prime minister denied ordering cinemas to stop showing the film. "I am not involved in that," Prayut said, adding he had seen some of the latest Hunger Games instalment. The military took power in May following months of political turmoil and street protests in the capital. A modicum of calm has since returned to the streets, but human rights groups say freedom of expression has been severely curtailed. The Bangkok Post newspaper on Friday published a rare critical comment piece lambasting the country's military rulers for stifling public discussion. "Through martial law, the military not only put the lid on political opposition... but on all forms of expression," author Wasant Techawongtham wrote. "Public expression in violation of martial law has so far been peaceful. But if the steam cannot be let off in constructive ways, the state of peace will inevitably be broken," Wasant added. Meanwhile a human rights group Friday accused the junta of using Thailand's draconian lese majeste laws to launch a "witch hunt". The International Federation of Human Rights (FIDH) said 15 of the 20 individuals currently behind bars on charges of insulting Thailand's monarchy have been either detained or imprisoned since the May coup. "Under the pretext of protecting the monarchy, the junta has embarked on a witch hunt that has significantly eroded fundamental human rights," FIDH President Karim Lahidji said. The royal family is a highly sensitive topic in the politically turbulent kingdom where 86-year-old King Bhumibol Adulyadej, the world's longest reigning monarch, is revered as a demi-god by many Thais. Join the conversation about this story »  | ||
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The UK Has More Offshore Wind Turbines Than The Rest Of The World Combined — And Another £21 Billion Are Planned | ||
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The UK's coastlines, incredibly, now have more offshore wind turbines than the rest of the world put together, according to a government report. Now another £21 billion investment is planned in the sector. The report, "UK Offshore Wind: Opportunities for trade and investment," says the UK is the best location on earth for the green energy source. There's 5.5GW worth already set up or soon to arrive, and the new project "represents the largest expansion in any class of renewable energy technology," the UK Trade and Investment agency says. By 2020, the country is on track to deliver more than 10GW of sustainable power, according to UKTI research. That's the equivalent to the South And North America's entire wind capacity. In July, Siemens proudly announced it would instal 10GW across Canada, the US, and throughout South America. That's enough to supply around three million households. The plans are being put in place by a collaboration of organisations involved in sustainable power, including UKTI, The Green Investment Bank, The Crown Estate, RenewableUK, and the Offshore Wind Programme Board.
Speaking at Manchester's RenewableUK conference this month, Energy and Climate Secretary Ed Davey said the initiative sets out why the UK is the world leader for doing business in offshore wind. Ernst & Young has ranked it No.1 in its last six studies of the market. Davey explains: "With a stable and predictable policy regime, with more installed capacity than any other country in the world, with operating capacity set to double by 2020, the UK represents a fantastic investment opportunity." For a further perspective, in March, Indian wind turbine manufacturer Suzlon celebrated — through its subsidiary Senvion — reaching the 10GW mark for onshore and offshore capabilities globally. Astonishingly, 7.5GW of that is in Europe. The UK investment strategy will see turbines spring up around the country's shores. Beatrice in Scotland, Liverpool Bay, and Dudgeon in Norfolk are all set for growth.
"This investment demonstrates our ongoing commitment to UK manufacturing and confidence in the industry," writes Matthew Chinn, Siemens' UK and Ireland managing director. "The development of local manufacturing will provide a huge boost to the UK renewables industry and will help unlock other major projects and investments." The output of the Hull site will be approximately 600 blades a year — and the factory will mean 1,000 new jobs are created, says the Hull Daily Mail. Here's the factory:
Not everyone supports wind turbines however, with some claiming they spoil views and could damage eco-systems. Donald Trump recently battled a development in Scotland — the Daily Record reports Trump argued a new farm would ruin his Aberdeenshire golf course.
There's also a handy interactive map that shows you where all the offshore wind farms are across the globe. Join the conversation about this story »  | ||
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In the new 
European Stocks Are Surging After Draghi's Dovish Speech | ||
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Mario Draghi just pushed European markets out of bed with a dovish speech, and every index is climbing significantly: France's CAC 40 is up 0.98% Germany's DAX is up 1.46% The UK's FTSE 100 is up 0.43% Italy's FTSE MIB is up 1.33% Spain's IBEX is up 1.80% Asian markets closed up: Japan's Nikkei finished 0.33% higher and Hong Kong's Hang Seng closed up 0.37%. US futures climbed with European stocks: the Dow is 49 points up, and the S&P 500 is 6 points higher. We're waiting on a speech at the same conference from the Bundesbank's Jens Weidmann, who is one of the most notable hawks making policy at the ECB. Other than that, it's a quiet day for data, with only the Kansas Fed's manufacturing index coming from the US, out at 4 p.m. GMT. Join the conversation about this story »  | ||
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