Good morning New York,
Which central bank’s forward guidance is most confusing? Could it be… the Bank of England, according to investors, Dan notes.
The “Larry rally”. European stock indices have hit five-year highs following Larry Summers’ withdrawal from the Fed chair race. The FTSE All-World equity index was on course for its best closing level since June 2008 as markets priced in greater dovishness than had been expected if Summers had secured the position (Financial Times).
Janet Yellen is now considered the frontrunner to lead the Fed — although Don Kohn, former vice-chair, would be an “extremely popular choice within the central bank” and President Obama may even seek to convince Ben Bernanke to remain in post for another two years, given Summers’ swift exit from the race (Financial Times).
Danske Bank ditched its chief executive in favour of someone with “stronger qualifications in banking”. Eivind Kolding, who had taken the top spot at Denmark’s biggest lender in 2012, will be replaced by Thomas Borgen, the bank’s head of corporate and institutional banking. Under Kolding’s leadership Danske became embroiled in a dispute over capital with its regulators, and a rebranding of the bank misfired (Financial Times).
Tom Albanese has joined Vedanta Resources months after stepping down as Rio Tinto’s chief executive. He will join the Indian mining conglomerate in an advisory role, as chairman of a UK subsidiary. Albanese left Rio Tinto in January after the company announced a large write-down on one of his key acquisitions, the purchase of Riversdale coal assets in Mozambique (Financial Times).