The reflation trade may not have long legs: Izzy noted Morgan Stanley's argument that for all the talk of heightened inflation expectations on the back of QE3, the truth is that central bank action is having less than its desired effect. The Kocherlakota Rule: Rather than spending much time supporting or criticising last week's decision by the FOMC, Minneapolis Fed president Narayana Kocherlakota has instead drawn inspiration from Charles Evans and introduced his own conditionality-based "liftoff plan." Cardiff has the details. QuEstionable effects on FX charted: David updates us on some curious QE-induced FX moves. An un-Belizeable debt restructuring: The small Central American country of Belize, is playing hardball with the holders of its $544m "superbond" on Thursday. David notes it's an interesting example of a sovereign debt restructuring which has turned pretty grumpy - interesting, and delicate, because holders of sovereign debt generally lack most normal forms of recourse in the event of default. Dallas Fed president Richard Fisher has strongly criticised QE3, warning that it would probably be ineffective in reducing unemployment while already raising inflationary expectations (Bloomberg). Brazil's finance chief attacks US over QE3: Guido Mantega, Brazil's finance minister, has warned that the US Federal Reserve's "protectionist" move to roll out more quantitative easing will reignite the currency wars with potentially drastic consequences for the rest of the world. Mervyn King says UK debt goal can be missed: The Bank of England Governor said if the economy failed to recover from the recession it would be acceptable for the government to miss its debt-reduction targets. "If it's because the economy's grown slowly, yes, indeed, and that was always part of the plan," King told Channel 4 television in London late yesterday. James Murdoch lined up to take direct responsibility for News Corp's US television businesses: The news comes just as UK regulator Ofcom heavily criticised Murdoch's record in that country, although it ultimately cleared him and deemed BSkyB fit to hold a licence. Oracle's hardware sales are expected to drop further: Sales have already tumbled 24 per cent from a year ago in the three months to August 31. It had forecast a decline of 7 to 17 per cent. Deutsche Bank could cut thousands of jobs in Germany: The bank would bring together back-office services from its retail banking brands from several subsidiaries to one new unit and transfer all IT systems to one platform, potentially eliminating thousands of jobs, the German newspaper reported. The boards of Glencore and Xstrata to holding last-minute meetings on Thursday: The board of Xstrata could reveal as soon as Friday whether it will recommend Glencore's offer of 3.05 shares of the commodities trading house for each of the miner's, people close to the talks said an announcement was not likely to be made until Monday, the final deadline given by regulators. Markets: Markets were back on a bullish tack after a brief wobble on Thursday on resurgent fretting about global economic growth, the FT reports. The FTSE All-World equity index was up 0.3 per cent as the FTSE Eurofirst 300 sported a gain of 0.4 per cent and with US futures suggesting Wall Street would add 0.3 per cent later in the day. Sentiment towards selected technology stocks in Asia was seen positively affected by the launch of Apple's iPhone 5, contributing to a gain of 0.7 per cent for the FTSE Asia Pacific index. China's Shanghai Composite has moved up 0.1 per cent from a 3-year trough, but has still shed 4.6 per cent this week. This entry was posted by Izabella Kaminska on Friday, September 21st, 2012 at 10:44 and is filed under Uncategorised.