Banking

Bloomberg Persistent inflation could trigger more spells when bonds and equities move in tandem, according to JPMorgan Chase & Co analysts, posing a headache for investors who use fixed-income securities to shelter some of their portfolios from stock-market drops. The bond-market selloff in September coincided with the S&P 500 shedding 4.8%, a lockstep move that battered multi-asset investors. A basket ...

Bloomberg Peru tightened monetary policy for a third straight month after inflation surged to its highest rate in 12 years and political volatility roiled the currency. The central bank lifted its benchmark rate half a percentage point, to 1.5%, matching the median forecast of economists surveyed by Bloomberg. It was the third consecutive rate hike by the bank led by ...

Bloomberg European banks are beginning to drop clients that pose a climate risk rather than face possibility of higher capital requirements, according to the watchdog overseeing the development. Banks are raising prices, denying loan requests, “de-selecting industries and in some cases clients,” said Jacob Gyntelberg, director of the economic and risk analysis department at European Banking Authority (EBA). There’s already ...

Bloomberg Colombia raised interest rates for the first time in five years, following in the footsteps of all the other major inflation-targeting economies in Latin America struggling to curb a surge in prices. The seven-member board voted to lift the benchmark rate by a quarter percentage point to 2% in a split decision, central bank Governor Leonardo Villar told reporters ...

Bloomberg New Zealand’s central bank (RBNZ) is expected to embark on a series of interest-rate increases to tame inflation and rein in soaring house prices, even as a coronavirus outbreak that has now spread beyond Auckland poses a greater risk to economic growth. Reserve Bank policy makers will raise the official cash rate by a quarter percentage point to 0.5% ...

Bloomberg China has urged financial institutions to help local governments stabilise the rapidly cooling housing market and ease mortgages for some homebuyers, another signal that authorities are worried about fallout from the debt crisis at China Evergrande Group. At a meeting chaired by central bank Governor Yi Gang, authorities told financial institutions to cooperate with governments “to jointly maintain the ...

Bloomberg Hamza Lemssouguer, a former top debt trader at Credit Suisse Group, is raising hundreds of millions of dollars from Squarepoint Capital as he starts his own hedge fund. Lemssouguer, 31, known for amassing large, risky bets on corporations, will manage the money as part of a venture with London-based Squarepoint. The Moroccan-born trader, who hopes to attract other investors, ...

Bloomberg Morgan Stanley is preparing to invest $1.36 million in five startups led by women or ethnic minorities in Europe, the Middle East and Africa, expanding a program that’s run for the past four years in the US. The Wall Street bank aims to help groups that often struggle to find seed capital. According to Morgan Stanley, less than 3% ...

Bloomberg The Czech central bank pledged to keep raising borrowing costs after lifting interest rates by the most in nearly a quarter century, pushing the koruna higher and angering the government with the European Union’s most aggressive anti-inflationary campaign. Policy makers increased the benchmark rate by 75 basis points to 1.5%, exceeding expectations for a half-point increase. The move followed ...

Bloomberg Citigroup Inc predicts India’s central bank will raise its reverse repo rate next week rather than the December increase expected earlier, becoming one of the first big banks to forecast the rollback of emergency measures as growth recovers and inflation expectations stay high. Governor Shaktikanta Das will probably announce on October 8 a 15 basis point increase in the ...