Banking

Bloomberg Switzerland’s negative central bank policy rate that allows the government to get paid to borrow money “inevitably raises the question” whether fiscal policy isn’t too restrictive, according to UBS Group AG. Switzerland has a low debt-to-output ratio, with a constitutionally guaranteed debt break meant to prevent out-of-control spending. The burden of keeping the economy on track falls on the ...

Bloomberg It is “still too soon” to say whether the coronavirus outbreak will cause a material change in the US outlook, said Federal Reserve Vice Chairman Richard Clarida, signalling officials won’t be rushed to judgment on the need to cut interest rates. “Monetary policy is in a good place and should continue to support sustained growth, a strong labour market, ...

Bloomberg If the coronavirus outbreak morphs into a regional economic crisis, the European Central Bank (ECB) isn’t yet poised to rush to the rescue. With interest rates deep below zero and the latest batch of asset purchases still ongoing, room for additional monetary support is severely limited. For policy makers in Frankfurt, that makes their case for governments such as ...

Bloomberg Global banks including UBS Group AG and Bank of America Corp are broadening their contingency plans across Asia to ensure they can keep trading and other operations running as the spread of the coronavirus accelerates outside China. Credit Suisse Group AG is among lenders starting to implement alternative work arrangements in South Korea, adding Asia’s fourth-largest economy to the ...

Bloomberg China’s currency is showing strength against peers, despite the country being most affected by the novel coronavirus epidemic. The yuan is approaching its strongest level since August versus a basket of 24 exchange rates, according to data compiled by Bloomberg. Most Asian peers have slumped against the currency in the past five trading days, with the Korean won and ...

Bloomberg Metro Bank Plc plans to cut costs and sell assets to help the struggling lender recover from an accounting scandal that led to heavy losses and the resignation of the firm’s previous boss. The bank reported a pretax loss of 130.8 million pounds ($170 million) for the year after it scrapped technology projects and unveiled plans to move back-office ...

Bloomberg Citigroup Inc is shuffling the bankers overseeing two of its largest investment banking units as the firm seeks to boost revenue from advising and providing financing to corporations. The lender promoted Stefan Wintels, the head of its German unit, and Christian Anderson, who helps oversee the global asset manager group, to run its global financial institutions business. The firm ...

Bloomberg Federal Reserve Bank of Cleveland President Loretta Mester said the worsening coronavirus outbreak represents a threat to the US economy, but not one that yet justifies any change in monetary policy. “At this point, it is difficult to assess the magnitude of the economic effects,” Mester said in the text of remarks she was scheduled to deliver in Washington. ...

Bloomberg European Central Bank (ECB) President Christine Lagarde kicked off a public consultation on her strategy review with the first direct video address by the institution’s chief to euro-area citizens. Adopting a communication technique untested by her predecessors, the Frenchwoman spoke to camera to invite views on monetary policy in a broadcast on Twitter released in tandem with a press ...

Bloomberg Most of the Brexit uncertainty that has been overshadowing the UK economy has lifted, although it’s too early to say business investment is fully returning, according to Bank of England (BOE) Chief Economist Andy Haldane. A “big chunk, if not all” of the uncertainty has dissipated, Haldane said in answer to questions following a speech at Bloomberg’s European headquarters ...