G-20 Members Agree to Avoid Currency War, Yen Continues to Fall
On Monday the US markets were closed to to the President's Day holiday. Investors continued to discuss the recent meeting of G20 policy makers that occurred on Friday. At the meeting the ministers pledged to not devalue their currencies to gain trading advantages. Mario Draghi of the European Central Bank on Monday spoke to quell fears that Japan and other countries may deliberately weaken their currencies. Despite this truce, Japan has admitted that they have not ruled out the purchase of foreign bonds, which would devalue the yen and violate the recent G20 proposal. This week several important economic indicators will be released including January's construction activity and a manufacturing gauge.Along with jobs data, the information will give a sense of the general economic outlook and confidence. Investors will also have their eyes on gold this week and wonder if countries such as China may bet on it, since the price dropped below $1,600 an ounce again on Friday.
Word on the Street
- Despite G20 comments from over the weekend, Japan discusses intervening in the markets with foreign bond purchases.
- US hedge fund investors profit off of the weakening yen--why this may be good and bad for the economy.
- Facebook (FB) will receive a $429 million tax refund due to an overpay around the time of their IPO.
- In order to cut down debt, Reader's Digest files for bankruptcy, again.
- CEO of Logitech International SA (LOGI) says profits will improve in the 2014 fiscal year.
- US futures rise slightly after the Japanese yen falls on G20 plans.
- Burger King (BKW) tops Q4 expectations after reporting adjusted earnings of 14 cents per share.
Published on Feb 18, 2013By InvestorGuide Staff