Banking

BLOOMBERG  China took steps to slow a decline in the yuan for a fourth time, as its weakness intensified on souring sentiment towards the world’s second-largest economy. The central bank set its so-called fixing for the managed currency at a stronger-than-expected level, after the offshore yuan extended a seven-month low. The move came after reports that regulators have stepped up ...

BLOOMBERG  Bank stocks’ recovery from their swoon earlier this year took a step back, with one prominent analyst cautioning that US lenders face a series of regulatory headwinds over the next few months. After rallying for the better part of a month since hitting their lowest level in more than two years, banking shares once again find themselves under pressure, ...

BLOOMBERG  The bond market is finally getting in sync with Jerome Powell’s outlook for the economy. Traders have scrapped once-aggressive wagers that the Federal Reserve chief would pivot to easing policy before the end of this year, reflecting deeply diminished expectations that the central bank’s rate hikes are poised to set off a sharp recession. Bond yields have risen back ...

BLOOMBERG British lenders will likely have to pass on all of the Bank of England’s record rate hikes to some savers, a JPMorgan Chase & Co analyst predicted as he warned of intensifying risks to profits in the sector. “With increased political pressure, we believe that deposit pass-through is likely to be closer to 100% on interest-bearing time deposits, with ...

BLOOMBERG  Goldman Sachs Group Inc has started cutting managing directors (MD) across the globe as the firm reduces its headcount amid a deals slump, according to people familiar with the matter. About 125 MDs, including some in investment banking, will lose their jobs, said one of the people, who asked not be identified because the cuts aren’t public. Not all ...

BLOOMBERG Australia’s central bank weighed the risk of upside surprises to inflation from a tight labour market and rising home prices when it decided to deliver a surprise interest-rate increase this month. The Reserve Bank’s board discussed the case to pause but concluded the “finely balanced” arguments were in favour of raising the cash rate to 4.1% — a level ...

BLOOMBERG UBS Group AG faces hundreds of millions of dollars in regulatory fines over Credit Suisse Group AG’s dealings with Archegos Capital, as the Swiss bank inherits its former rival’s entire litigation portfolio, according to a person familiar with the matter. The US Federal Reserve’s fine over Archegos may be as high as $300 million, while the UK’s Prudential Regulation ...

BLOOMBERG New Zealand’s government announced an inquiry into its banking sector amid concerns that lenders are making excessive profits. Cabinet has agreed to a market study into competition in the sector for personal banking services to ensure the market is working well for New Zealanders, Finance Minister Grant Robertson said in Wellington. It will be conducted by the antitrust watchdog ...

BLOOMBERG Chinese banks followed the central bank by lowering their benchmark lending rates, although a relatively modest reduction to the mortgage reference rate disappointed investors. The one-year and five-year loan prime rates were reduced by 10 basis points each, according to a statement by the People’s Bank of China (PBOC). While that was in line with the reduction in the ...

BLOOMBERG Jerome Powell will be in the Capitol Hill spotlight a week after the Federal Reserve paused its most aggressive tightening campaign in decades, with investors watching for clues on whether central bankers are indeed leaning toward further interest-rate hikes. The Fed chair will deliver the central bank’s semi-annual monetary policy report to the House on Wednesday and the Senate ...