Weekly Global Financial News March 31-April 6

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China Lenders Bail as Bad Debts Pour In, By Wall Street Journal, Published: April 1
http://goo.gl/xTzMpF
China’s five biggest state-owned banks including Industrial & Commercial Bank stepped up their efforts to write off bad loans last year, highlighting amounting risks from debt as the economy cools.

Debt troubles within the Great Wall, By Financial Times, Published: April 1
http://goo.gl/hfL8kK
Mounting debt issue is one of China’s biggest problems however, the question is not whether it will stop, but how and when.

IMF warns on ‘too big to fail’, By Financial Times, Published: April 2
http://goo.gl/UJtznq
The IMF warned that the world’s largest banks still receive implicit public subsidies worth as much as $590bn because of their status as “too big to fail” and the assumption of a government bailout if they get into trouble.

Eurozone banks load up on state debt, By Financial Times, Published: April 1
http://goo.gl/dvYUX9
Europe’s banks hold more sovereign debt than at any time since the euro crisis, fuelling worries about the potentially destabilizing interdependency between financial institutions and national governments.

China bulls urged on by stimulus hopes, By Financial Times, Published: April 2
http://on.ft.com/PD0GKB
In response to Chinese economy facing downward pressure, investors are turning increasingly bullish on its markets with high expectations for launching stimulus plans including infrastructure projects

ECB ready to print money if ‘lowflation’ lingers too long, By Reuters, Published: April 3
http://reut.rs/QI6cge

The European Central bank turns to slightly dovish in response to Euro zone inflation falling to 0.5 percent in March as it noted that quantitative easing can be possibly made if risks of deflation become more acute

Capital flows, improving trade to prop yuan up in second-half, By Reuters, Published: April 4
http://reut.rs/1fVamGS
Yuan’s recent dramatic fall was made after the central bank widened trading band to rein in speculators betting on non-stop yuan appreciation. However, in the long term, the second largest economy’s currency would resume its long rising trend with quickly expanding offshore yuan market.

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