Weekly Global Financial News (June 16 – June 22)


European flags in Brussels

Euro zone has correct fiscal stance to cut debt, help growth: IMF, By Reuters, Published: June 19
The euro zone’s fiscal stance strikes the right balance between demand support and debt reduction
, the International Monetary Fund said. The sovereign debt crisis plunged the euro zone into a deep recession and now the economy is recovering slowly after several years of consolidation.

Stock exchange pricing model comes under fire at Senate hearing, By Reuters, Published: June 17
The “maker-taker” pricing model used by U.S. stock exchanges came under fire for being too conflict-ridden. But pursuing changes to the model seemed difficult as not all experts were enthused about eliminating it.

EU can be flexible on fiscal consolidation, but reforms first: officials, By Reuters, Published: June 19
The European Union agreed that the Stability and Growth Pact can provide more flexibility about the time for members to cut their deficit to within EU limits as long as structural reforms linked with budget plan are undertaken. The new EU’s fiscal rule limits government deficits to 3 percent of gross domestic product and public debt to 60 percent of GDP.

Yellen gives the green light for more stock gains, By Reuters, Published: June 20
Federal Reserve chief Janet Yellen interest rates could stay “well below longer-run normal values at the end of 2016,” leading to further gains in stock prices that on Thursday pushed the S&P 500 to a new record.

Philippines May Halve Global Debt Sale in 2015 to $750 Million, By Bloomberg, Published: June 22
The Philippines may offer about $750 million in global bonds in 2015, half the overseas debt it sold this year as loads of domestic liquidity continues to absorb the borrowings of the government.

Oil price risks put inflation back in focus, By Reuters, Published: June 22
The rapid advance of militants in Iraq, the second-largest OPEC producer, is destabilizing oil markets. This has implications for inflation in the United States and Europe, as well as Asia’s export-oriented economies that are large net importers of oil.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s