FED TAPERING WON'T BE AS SEVERE AS ORIGINALLY BELIEVED - ANALYST - Central Bankers from around the world gathered at Jackson Hole in Wyoming for their annual symposium at the weekend. But the Chairman of the US Federal Reserve, Ben Bernanke, was not at the meeting which usually features an address on future policy from the Fed boss.
Mark Murnane, head of trading with Shelbourne Markets, said one of the reasons for the no-show by Ben Bernanke was that he is likely to finish up at the Fed in the coming months. "Also, the last time he gave a public address, at which he mooted the stimulus tapering, the markets sold off very aggressively. We saw numerous Fed officials come out to downplay his suggestions,'' the analyst says.
Mark Murnane said it is widely believed the Fed tapering will not be as severe as originally believed. "There's speculation that it will be lowered to $75 billion a month. That is a reduction of $10 billion which is still very significant. People initially believed it could be slowed dramatically or halved," he said.
Emerging markets have been hit disproportionately by the sell off prompted by suggestions of tapering. "If tapering happens, there'll be less money available to invest in high yielding emerging markets. We've seen investors exiting those markets in the last month. They've been performing poorly as a result. BRIC equity markets have come off strongly as investors sit on the sidelines and look for the next opportunity," Mark Murnane said.
Central Bankers from Japan and the US, as well as the IMF chief Christine Lagarde moved to reassure emerging markets that their policies would support them even if the US pursued its QE wind-down.
MORNING BRIEFS - A key figure that might help in determining when the wind-down of US bond purchases should take place is the durable goods orders out today. Economists expect orders of long-lasting manufactured goods to have declined 4% in July, from a 3.9% increase in June. A sharp drop in Boeing aircraft orders is largely to blame for that.
*** Microsoft Ireland is holding a 'career reboot' day on August 31. The company is looking to match candidates with prospective employers in the area of cloud sales. But it has also partnered with the Higher Education Authority and a number of colleges to train people in the skills required for a career in the area. Companies are increasingly looking to boost their cloud services so this will be a huge growth area over the coming years. Meanwhile, Nursing Homes Ireland is making people aware that there are currently over 250 vacancies in the nursing home sector across Ireland.
NHI has 350 members across Ireland who employ over 22,000 staff.
*** Coca Cola is the biggest selling brand in the Irish grocery market for the ninth year in a row. The Checkout top 100 brands report from Checkout magazine and Nielsen puts dairy company Avonmore in second place with Brennan's Bread coming in third. Cadburys' Dairy Milk re-enters the top five, knocking Tayto down to number six.