Banking

Bloomberg The boast by People’s Bank of China Governor Yi Gang this month that he has “tremendous room” to adjust policy could soon be tested as the economy slows, throwing attention on the impact on the nation’s fragile currency and financial markets. Compared to European and Japanese peers, China does have more obvious policy space. Its benchmark one-year lending rate ...

Bloomberg Trade-reliant Thailand better get used to worrying about the export outlook if President Donald Trump wins a second term, according to an official who helps to decide the country’s policy interest rate. “The US-China trade war has haunted us,” Somchai Jitsuchon, a member of the Bank of Thailand’s (BOK) monetary policy committee, said in an interview. “And that may ...

Bloomberg Japanese inflation data looks set to push bond yields even lower and increase scrutiny of central bank Governor Haruhiko Kuroda, who says he can deliver more big monetary stimulus if necessary. Yields on Japanese government bonds have fallen since mid-April, with returns on 10-year debt touching a near three-year low of minus 0.135 percent on June 7. While these ...

Bloomberg Switzerland’s government opposes a measure that would forbid the central bank, pension funds and foundations from investing in munitions-makers, saying it wouldn’t be effective. The pending popular initiative would make it impossible for the Swiss National Bank from investing in a market-neutral way and would also create a precedent for other restrictions the government said in a statement. The ...

Bloomberg Russia’s central bank shifted solidly to monetary easing, saying first interest rate cut in more than a year could be followed by two more in 2019, as inflation slows and growth sputters. The move makes Russia the latest emerging market to shift towards more dovish policy as escalating trade woes weigh on growth. The change in trajectory of interest ...

Bloomberg Goldman Sachs economists are skeptical that trade policy uncertainty is a major drag on business investment at the moment. Instead, they’re pointing to other economic indicators, which they say are still okay. “The link between economic policy uncertainty and capex weakens sharply when taking into account financial conditions and company investment spending expectations, which both still signal a decent ...

Bloomberg The Federal Reserve will likely cut interest rates this year but not nearly as aggressively as investors expect, according to a Bloomberg survey of economists. Respondents to a June 7-12 poll saw policy makers lowering rates by a quarter point this year. That’s a meaningful shift since March — when economists anticipated a hike in September — reflecting a ...

Bloomberg The biggest shareholder in Nordea Bank Abp is cutting its stake below 20% in a move the investor says is designed to ease its capital burden. Sampo Oyj, which is based in Helsinki, will distribute some of its holdings in Nordea as an extra dividend to shareholders. By going below 20%, Sampo will no longer be treated as a ...

Bloomberg The Swiss National Bank (SNB) stuck with ultra-loose monetary policy and a pledge to battle currency strength amid a deteriorating backdrop that’s tying its hands. The SNB’s dual tack of record-low interest rates and unwavering intervention threats have been at the heart of the President Thomas Jordan’s push in recent years to keep the franc in check. A downshift ...

Bloomberg Bank of England (BOE) policy makers will probably keep policy on hold despite warnings that interest rates will have to rise in the future. All but one of the 20 analysts surveyed by Bloomberg predict a unanimous vote to keep the benchmark at 0.75%. Political turmoil, a lack of clarity about Britain’s departure from the European Union, weaker-than-expected economic ...