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Fed unlikely to cut interest rate, according to Blue Planet

Blue Planet Investment Management is warning that the Federal Reserve is unlikely to cut interest rates in September, leading to a sharp fall in the markets this month.

Blue Planet says US Federal Reserve board chairman Ben Bernanke’s address to the Jackson Hole meeting made it clear that there will be no cut in the Fed Funds rate in September.

Bernanke says: “It is not the responsibility of the Federal Reserve, nor would it be appropriate, to protect lenders and investors from the consequences of their financial decisions.”

Blue Planet says Bernanke’s views were predictable and reflect the long held view of virtually every central banker in the world. For them the avoidance of “moral hazard” is central to ensuring the stability of banking systems and it is imperative that those who engage in imprudent lending bear the losses that arise from it.

Blue Planet Investment Management CEO Ken Murray says: “Markets have been rising recently in the belief that the Fed is going to cut interest rates. Consequently, there is likely to be a sharp fall in September when they are not cut and the losses that are building in the sub-prime market re-assert themselves.

“Blue Planet has hedged all of their Funds covering between 40 and 55 per cent of all assets. This is in anticipation of the re-emergence of the serious and large losses that are building in the banking and fund industries which are not going to go away quickly, contrary to what some in the market believe.”


Axa UK acquires employee support specialist ICAS

Axa UK has acquired ICAS International Holdings, a global provider of employee support and well-being services.Axa says the move will help its healthcare division, Axa PPP, to strengthen its presence in the growing market for employee support and well-being services.ICAS has over 900 corporate clients, 50 of which are multinational, and 1.5 million employees covered […]

Quest for quality

Unity is needed to produce qualifications that are recognised industrywide

Strait to the point

Instead of taking it easy on the bank holiday weekend, two employees of Investec Asset Management decided to swim from Europe to Africa across the Straits of Gibraltar.Nick Marshall and Werner Gey van Pittius tackled the 14km Straits but strong currents meant the duo had to swim 20km while dangers included sharks, hypothermia and tankers […]

Quality street

Last week, I returned to the airwaves for the first time in some months. The subject matter seemed particularly apposite, given the state of markets. How should investors go about buying shares was the question posed to me. Inevitably, it led into whether private individuals ought to buy shares direct and what was my opinion of the wild gyrations in the market at present.


Natixis Global Asset Management’s quarterly Portfolio Barometer offers insights into UK financial advisers’ model portfolios and the allocation decisions they are making. Natixis’s Portfolio Research & Consulting Group works with financial advisers and other intermediaries to analyse and enhance their model portfolios and help them develop investor portfolios suited to today’s complex markets. The Portfolio […]


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