Bank for International Settlements meets secretly in Australia with central bankers to discuss European default problems
http://www.news.com.au/business/secret-summit-of-top-bankers/story-e6frfm1i-1225827289543
THE world’s top central bankers began arriving in Australia yesterday as renewed fears about the strength of the global economic recovery gripped world share markets.
Representatives from 24 central banks and monetary authorities including the US Federal Reserve and European Central Bank landed in Sydney to meet tomorrow at a secret location, the Herald Sun reports.
Organised by the Bank for International Settlements last year, the two-day talks are shrouded in secrecy with high-level security believed to have been invoked by law enforcement agencies.
Speculation that the chairman of the US Federal Reserve, Dr Ben Bernanke, would make an appearance could not be confirmed last night.
The event will be dominated by Asian delegations and is expected to include governors of the Peoples Bank of China, the Bank of Japan and the Reserve Bank of India.
The arrival of the high-powered gathering coincided with a fresh meltdown on world sharemarkets, sparked by renewed concerns about global growth and sovereign debt.
Fears countries including Greece, Portugal, Spain and Dubai could default on debt repayments combined with disappointing US jobs data to spook investors.
Australia’s ASX 200 slumped 2.4 per cent, to a its lowest close since November 5, echoing a sharp fall on Wall Street.
Asian share markets were also pummelled, with Japan’s Nikkei 225 down almost 3 per cent and Hong Kong’s Hang Seng slumping 3.3 per cent.
The damage was also being felt by European markets last night with London’s FTSE 100 down sagging 1 per cent in early trade.
Sovereign debt fears rippled through to the Australian dollar which was hammered to a four-month low of US86.43 and was trading at US86.77 cents last night.
“This does feel like ‘08 and ‘07 all over again whereby we had these sort of little fires pop up and they are supposedly contained but in reality they are not quite contained,” said H3 Global Advisors chief executive Andrew Kaleel.
“Dubai should have been an isolated incident and now we are seeing issues with Greece, Portugal and Spain.”
It wasn’t all bad news with the RBA yesterday upping its Australian growth forecasts and flagging more interest rate rises this year.
The central bank estimates the economy grew 2 per cent in 2009, and will expand by 3.25 per cent in 2010, and by 3.5 per cent in 2011.
The outlook for global growth is likely to be a key theme of the high level central bank talks.
The gathering also comes at an important time for the BIS as it initiates an overhaul of the global banking system which will include new capital rules applying to banks and more stringent standards regulating executive pay.
A key part of the two-day talkfest will be a special meeting of Asian central bankers chaired by the governor of the Central Bank of Malaysia, Dr Zeti Akhtar Aziz.
Influential BIS general manager Jaime Caruana is also expected to take a prominent role in the talks.
Federal Treasurer Wayne Swan will address the central bank officials at a dinner on Monday night.
***
http://www.shortnews.com/start.cfm?id=82785
Representatives for 24 central banks and money authorities, including the US Federal Reserve and European Central Bank, have landed in Sydney, Australia. They plan to hold a meeting at a secret location tomorrow. Many important bankers will attend.
Many Asian delegates, including governors of the Peoples Bank of China, the Bank of Japan, and the Reserve Bank of India, will hold a meeting with Dr. Zeti Akhtar Aziz, governor of the Central Bank of Malaysia, who will chair.
General manager of BIS, Jaime Caruana, will take a prominent role in the talks, at a time when his company is overhauling the global banking system with more rules and standards. Ben Bernanke, chairman of the Fed, may attend but this is unconfirmed.
***
http://www.earthtimes.org/articles/show/307795,central-bankers-to-meet-in-australia-to-discuss-looming-new-crisis.html
Sydney – Central bankers are to meet in Australia’s biggest city for two days of talks as plunging stock markets renew fears of a slow and patchy recovery from the global financial crisis, Sydney’s Herald Sun reported Saturday. The paper said representatives from 24 central banks, including the US Federal Reserve and the European Central Bank, are to assemble Sunday and Monday in an undisclosed location.
The organizer of the meeting is the Bank for International Settlements rather than the Australian government, which would help explain why secrecy prevails. The governors of the People’s Bank of China, the Bank of Japan and the Reserve Bank of India are said to be on the guest list. The gathering, arranged last year, takes place against a background of world share markets reeling from fears that governments, not just companies, may have difficulty with their balance sheets.
“It’s been a long time since we have seen really serious sovereign risk in developed economies,” Gerard Minack, the head of brokerage Morgan Stanley’s Australian operations, told the public broadcaster ABC. “We don’t have a lot of history to go by, at least in the modern era.”Minack said the concern was not just about Greece, Spain and other southern European countries – the so called Club Med – but about other economies.
“We are now seeing it spread around the ring of fire that surrounds core Europe,” he said. “I mean, Eastern Europe looks terrible. We know already there are concerns about the Spanish, the Italians, possibly the Japanese.”Australian shares lost 2.3 per cent of their value Friday in line with stock markets around the world. The Australian dollar fell to a six-week low against the US dollar as investors sought a safe haven in the world’s top currency.
http://www.news.com.au/business/secret-summit-of-top-bankers/story-e6frfm1i-1225827289543
THE world’s top central bankers began arriving in Australia yesterday as renewed fears about the strength of the global economic recovery gripped world share markets.
Representatives from 24 central banks and monetary authorities including the US Federal Reserve and European Central Bank landed in Sydney to meet tomorrow at a secret location, the Herald Sun reports.
Organised by the Bank for International Settlements last year, the two-day talks are shrouded in secrecy with high-level security believed to have been invoked by law enforcement agencies.
Speculation that the chairman of the US Federal Reserve, Dr Ben Bernanke, would make an appearance could not be confirmed last night.
The event will be dominated by Asian delegations and is expected to include governors of the Peoples Bank of China, the Bank of Japan and the Reserve Bank of India.
The arrival of the high-powered gathering coincided with a fresh meltdown on world sharemarkets, sparked by renewed concerns about global growth and sovereign debt.
Fears countries including Greece, Portugal, Spain and Dubai could default on debt repayments combined with disappointing US jobs data to spook investors.
Australia’s ASX 200 slumped 2.4 per cent, to a its lowest close since November 5, echoing a sharp fall on Wall Street.
Asian share markets were also pummelled, with Japan’s Nikkei 225 down almost 3 per cent and Hong Kong’s Hang Seng slumping 3.3 per cent.
The damage was also being felt by European markets last night with London’s FTSE 100 down sagging 1 per cent in early trade.
Sovereign debt fears rippled through to the Australian dollar which was hammered to a four-month low of US86.43 and was trading at US86.77 cents last night.
“This does feel like ‘08 and ‘07 all over again whereby we had these sort of little fires pop up and they are supposedly contained but in reality they are not quite contained,” said H3 Global Advisors chief executive Andrew Kaleel.
“Dubai should have been an isolated incident and now we are seeing issues with Greece, Portugal and Spain.”
It wasn’t all bad news with the RBA yesterday upping its Australian growth forecasts and flagging more interest rate rises this year.
The central bank estimates the economy grew 2 per cent in 2009, and will expand by 3.25 per cent in 2010, and by 3.5 per cent in 2011.
The outlook for global growth is likely to be a key theme of the high level central bank talks.
The gathering also comes at an important time for the BIS as it initiates an overhaul of the global banking system which will include new capital rules applying to banks and more stringent standards regulating executive pay.
A key part of the two-day talkfest will be a special meeting of Asian central bankers chaired by the governor of the Central Bank of Malaysia, Dr Zeti Akhtar Aziz.
Influential BIS general manager Jaime Caruana is also expected to take a prominent role in the talks.
Federal Treasurer Wayne Swan will address the central bank officials at a dinner on Monday night.
***
http://www.shortnews.com/start.cfm?id=82785
Representatives for 24 central banks and money authorities, including the US Federal Reserve and European Central Bank, have landed in Sydney, Australia. They plan to hold a meeting at a secret location tomorrow. Many important bankers will attend.
Many Asian delegates, including governors of the Peoples Bank of China, the Bank of Japan, and the Reserve Bank of India, will hold a meeting with Dr. Zeti Akhtar Aziz, governor of the Central Bank of Malaysia, who will chair.
General manager of BIS, Jaime Caruana, will take a prominent role in the talks, at a time when his company is overhauling the global banking system with more rules and standards. Ben Bernanke, chairman of the Fed, may attend but this is unconfirmed.
***
http://www.earthtimes.org/articles/show/307795,central-bankers-to-meet-in-australia-to-discuss-looming-new-crisis.html
Sydney – Central bankers are to meet in Australia’s biggest city for two days of talks as plunging stock markets renew fears of a slow and patchy recovery from the global financial crisis, Sydney’s Herald Sun reported Saturday. The paper said representatives from 24 central banks, including the US Federal Reserve and the European Central Bank, are to assemble Sunday and Monday in an undisclosed location.
The organizer of the meeting is the Bank for International Settlements rather than the Australian government, which would help explain why secrecy prevails. The governors of the People’s Bank of China, the Bank of Japan and the Reserve Bank of India are said to be on the guest list. The gathering, arranged last year, takes place against a background of world share markets reeling from fears that governments, not just companies, may have difficulty with their balance sheets.
“It’s been a long time since we have seen really serious sovereign risk in developed economies,” Gerard Minack, the head of brokerage Morgan Stanley’s Australian operations, told the public broadcaster ABC. “We don’t have a lot of history to go by, at least in the modern era.”Minack said the concern was not just about Greece, Spain and other southern European countries – the so called Club Med – but about other economies.
“We are now seeing it spread around the ring of fire that surrounds core Europe,” he said. “I mean, Eastern Europe looks terrible. We know already there are concerns about the Spanish, the Italians, possibly the Japanese.”Australian shares lost 2.3 per cent of their value Friday in line with stock markets around the world. The Australian dollar fell to a six-week low against the US dollar as investors sought a safe haven in the world’s top currency.