Weekly Global Financial News Dec1-Dec7

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Assessing the fallout from the fall in oil prices, Published: Dec 5

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With crude oil prices hitting five-year lows, investors are scrambling to speculate on how the decline in oil prices has impacted or will impact. However, whether the drop will have an effect on other sectors is yet unclear. 

China to deepen economic reforms in 2015: Xinhua, By Reuters, Published: Dec 5

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China will deepen reforms in the world’s second-largest economy in 2015 as it tries to remake its growth model into one that is greener and more sustainable. 

Bullish U.S. jobs report keeps Fed on track for mid-2015 rate hike, By Reuters, Published: Dec 5

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The employment report provided that latest sign that a strengthening job market is starting to spur faster wage growth, a key factor that could draw the Federal Reserve closer to raising interest rates. 

ECB Chief Goes Stumping for Stimulus Votes, a Trillion Euros on the Table, By Bloomberg, Published: Dec 5

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With inflation already at a five-year low, Draghi strengthened his language on possible stimulus by saying that policy makers “intend” rather than “expect” the ECB’s balance sheet to grow toward its levels of early 2012. 

Gold Futures Drop as Payrolls in U.S. Surge by Most Since 2012, By Bloomberg, Published: Dec 6

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Gold slumped after the U.S. added the largest number of jobs in almost three years, fueling concern that the Federal Reserve will move closer to raising interest rates.

International lending to China soars in 2014: BIS, By Reuters, Published: Dec 7

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China has become the largest emerging market destination for international bank lending, accounting for more than a quarter of cross-border claims on all emerging market economies. Concerns are mounting of a credit bubble developing in China.

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Weekly Global Financial News (Oct 13-Oct 19)

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Getting used to the ‘new mediocre’, Published: Oct 19

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With the Fed set to turn off its money taps at the end of this month, Evaporating inflation and slowing growth have put financial markets into such a spin, something International Monetary Fund chief Christine Lagarde has termed a “new mediocre”.

 

ECB eyes extra funding for Greek banks as Athens markets plunge, By Reuters, Published: Oct 16

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The European Central Bank will loosen its terms for accepting security from Greek banks to allow them to tap more of its funding. This will provide a powerful incentive for Athens to stay under the supervision of international lenders rather than attempt to go it alone.

 

Fed likely to end bond buying, may signal caution on rate hikes, By Reuters, Published: Oct 16

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As mounting signs of weakness overseas have led investors to question the Federal Reserve’s resolve, the central bank is likely to reassure investors that it won’t stand idle if global turbulence threatens the U.S. economy.

 

BOJ bill-buy offer fails to attract sellers, shows limits of easing strategy, By Reuters, Published: Oct 17

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The Bank of Japan’s offer to buy over $28 billion of government bills on Friday fall short of enticing enough sellers, underscoring growing difficulties of force-feeding banks with liquidity.

 

China to inject $33 billion of three-month loans into banks: sources, By Reuters, Published: Oct 17

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China’s central bank is set to inject about 200 billion yuan ($32.66 billion) worth of three-month loans to keep liquidity ample and support the slowing Chinese economy.

 

Volatile markets deepen anxiety over European bank tests, By Reuters, Published: Oct 17

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Violent swings on financial markets have deepened investors; anxiety about What Europe’s review of the health of its banks will reveal from European bank tests.

 

Argentina says to launch new two-year bond issue up to $1 billion, By Reuters, Published: Oct 17

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Argentina will launch a new two-year sovereign bond for up to $1 billion, denominated in U.S. dollars and paid in the local peso currency.

 

Weekly Global Financial News (Sep 29-Oct 5)

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Japan PM still ‘neutral’ on tax hike but recovery weak: economy minister, By Reuters, Published: Oct 4
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Japanese Prime Minister Shinzo Abe remains “completely neutral” on whether to raise the national sales tax, Economy Minister Akira Amari said on Sunday even as he expressed concern about the strength of the country’s economic recovery.

IMF sees diminished risk from global economic imbalances, By Reuters, Published: Sep 30
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Global imbalances in trade and investment flows have shrunk and are likely to stay lower in the future, diminishing systemic risks to global economy.

China ready to grab business after EU-Russia showdown, By Reuters, Published: Oct 2
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China is ready to seize any business opportunities in Russia resulting from Moscow’s diplomatic conflict with Europe over Ukraine, Beijing’s ambassador to Berlin said.

Putin says ‘foolish’ sanctions will not hold back Russia, By Reuters, Published: Oct 2
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President Vladimir Putin dismissed Western sanctions and said they would not stop Russia developing into a stronger economic power amid a speech to foreign and Russian investors.

ECB targets bundled-debt market to boost economy, By Reuters, Published: Oct 2
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The European Central Bank laid out plans to buy reparceled packets of debt known as asset-backed securities in order to shore up the flagging euro zone economy.

Thailand approves $2.74 billion investment in 18 projects, By Reuters, Published: Oct 3
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Thailand’s investment agency said on Friday it had approved applications for 18 projects worth 89.7 billion baht ($2.74 billion), many of them involving the automobile sector and renewable energy.

China aims to sooth transport bottlenecks by 2020, Published: Oct 3
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China aims to ease transport bottlenecks which are affecting economic development by 2020 with a plan announced on Saturday to tackle issues such as excessive road tolls and poor connectivity and to ensure the smoother flow of goods.

Weekly Global Financial News (Sep 15-Sep 21)

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Relief over Scotland gives way to ‘Great Stagnation’ worries, By Reuters, Published: Sep 21
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Scotland’s rejection of independence has calmed investors as one major source of political and economic uncertainty disappeared.

Fed renews zero rate pledge, but hints at steeper rate hike path, By Reuters, Published: Sep 17
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The Federal Reserve repeated its assurance that it will keep interest rates near zero for a “considerable time” but also indicated it could raise borrowing costs faster than expected when it starts moving.

South Korea to sharply boost budget spending to spur economy, By Reuters, Published: Sep 17
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South Korea’s government unveiled fiscal spending set to grow for the 2015-2017 period to help the local economy better cope with a tepid global recovery and a continued slump in domestic demand.

China’s house prices fall further, economic gloom deepens, By Reuters, Published: Sep 18
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Worries that China’s economy may be slowing intensified as data showed home prices fell for the fourth straight month, adding to expectations that Beijing will need to do more to spur economy.

Japan, China, South Korea agree to ensure geopolitical risks don’t threaten recovery, By Reuters, Published: Sep 19
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Financial policymakers of Japan, China and South Korea agreed to strengthen regional capabilities to manage financial and economic risks and respond to possible crisis.

Russian PM Medvedev vows to keep economy open, hails pivot to China, Published: Sep 19
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Prime Minister Dmitry Medvedev said that Russia would not isolate its sanctions-hit economy from the West but improving relations with Asian countries has become a key strategy as Moscow has embarked on a pivot to Asia, signing a series of trade and business agreements, mainly with China.

As G20 chases growth goal, members differ on how to get there, By Reuters, Published: Sep 20
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Financial leaders of the Group of 20 top economies remain committed to chasing higher global growth, but were divided on how to achieve it as Germany pushed back at calls from the United States and others for more immediate stimulus.

Weekly Global Financial News (Sep 8-Sep 14)

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Russia and China discussing 32 joint projects: Russian deputy PM, By Reuters, Published: Sep 13
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Russia and China are discussing more than 30 joint economic projects in a variety of areas from petrochemicals to banking. After Russia was hit sanctions by the United States and the European Union over its involvement in Ukraine, China was keen to cooperate with Russia.

IMF says Ebola hits economic growth in West Africa, By Reuters, Published: Sep 11
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Economic growth in Liberia and Sierra Leone could decline by almost 3.5 percentage points as the world’s worst outbreak of Eblola has crippled mining, agriculture and services sectors.

After default, Argentina economy falling into deeper hole, By Reuters, Published: Sep 11
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Argentina’s government is ramping up state intervention in the economy to try to prevent a new default from triggering a balance of payment crisis but its policies are also battering business confidence and may deepen recession.

Exclusive: Brazil assessing whether to cut key fiscal goal in 2014, By Reuters, Published: Sep 12
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The Brazilian government is assessing whether to cut its primary budget surplus target in 2014.

Abe says ‘neutral’ on whether to raise Japan sales tax to 10 percent, Published: Sep 13
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Japanese Prime Minister Shinzo Abe said he remained neutral on whether to proceed with a hike in Japan’s sales tax to 10 percent, adding that decision would hinge on the strength of economic indicators for the current quarter.

Show us the money: EU seeks billions of euros to revive economy, By Reuters, Published: Sep 13
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The European Union sought ways to marshal billions of euros into its sluggish economy without getting deeper into debt.

Weekly Global Financial News (Aug 26-Sep 01)

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India’s growth speeds up in after-glow of Modi’s triumph, By Reuters, Published: Aug 29
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Narendra Modi’s election victory helped India’s lumbering economy register its fastest growth in two-and-a-half years for the quarter ending in June.

China foreign investment pattern changes as challenges grow, By Reuters, Published: Aug 26
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China’s foreign investment mix is changing, with portfolio investors buying more stocks but foreign direct investment falling to a two-year low on a slowing economy, rising business costs and anti-monopoly probes and crackdowns on foreign firms.

Modi to launch plan for every Indian household to have bank account, By Reuters, Published: Aug 27
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Prime Minister Narendra Modi will promise to provide a bank account for every Indian household when he launches a major initiative that could save billions of dollars in welfare spending and help mend strained state finances. In India, nearly two-fifths of its 1.27 billion people do not have a bank account, leaving them dependent on informal financing routes.

Japan’s Abe faces another bruising debate over raising sales tax, By Reuters, Published: Aug 28
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Prime Minister Shinzo Abe faces hard choices in coming months: whether to hike Japan’s sales tax again, raising the risks of damaging a fragile recovery, or to back off and shakes markets’ confidence in his commitment to curbing runaway government debt.

Brazil enters recession in election blow to Rousseff, By Reuters, Published: Aug 29
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Brazil fell into a recession in the first half of the year as investment dropped sharply and the country’s hosting of the World Cup suffocated economic activity, a major blow to President Dilma Rousseff’s already fading hopes for re-election in October.

China banks seek new lending horizons as bad debts rise, By Reuters, Published: Aug 31
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Grappling with a slowing economy, China’s biggest banks are turning their back on mainstay borrowers like manufacturers and courting high growth industries such as healthcare, food and IT in a bid to boost revenue.

Weekly Global Financial News (Aug 18-Aug 25)

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Jackson Hole Theme: Labor Markets Can’t Take Higher Rates, By Bloomberg, Published: Aug 25
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Global central bankers led by Federal Reserve Chair Janet Yellen said stronger hiring and wages are still needed before economies can weather higher interest rates.

Promise of more keeps investors hooked on Asia’s frothy markets, By Reuters, Published: Aug 18
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While other regions have cooled off, Asia has remained the exception as global investors are still betting on a mix of healthy returns powered by brisk corporate earnings growth.

China to launch market-making system on Beijing OTC market on August 25, By Reuters, Published: Aug 18
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China will implement a market-making system for trading shares on the exchange, securing an easy profit from the spread between bids and asks.

Draghi Signals ECB Action as Inflation Expectations Slide, By Bloomberg, Published: Aug 23
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Mario Draghi said inflation expectations have deteriorated across the euro area and signaled policy makers are ready to add fresh monetary stimulus.

Kuroda Says Using Foreigners to Fill Job Gaps Worth Considering, By Bloomberg, Published: Aug 24
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Bank of Japan Governor Haruhiko Kuroda said that using foreign workers to help mitigate potential labor force shortages in the future deserves consideration in addition to ensuring increased particiapation of women and the elderly n the work force.

Korea’s Biggest Fund Manager Sees One More BOK Rate Cut: Economy, By Bloomberg, Published: Aug 25
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South Korea’s central bank is likely to cut its benchmark interest rate to 2 percent, after lowering it to 2.25 percent from 2.50 percent on Aug 14, in order to help revive the economy