Banking

Bloomberg A panel named by India’s central bank to study its capital structure is likely to identify excess reserves of up to 3 trillion rupees ($43 billion), or 1.5 percent of gross domestic product, according to Bank of America Merrill Lynch. The view from BofAML lends itself to a debate over Reserve Bank of India’s reserves, with one school of ...

Bloomberg Risky assets are reacting more strongly to hawkish monetary shocks from the Federal Reserve in recent years, according to Goldman Sachs Group Inc. The reason, ironically, is that the Fed is losing its forecasting edge. The Fed’s relative predictive advantage versus private economists has declined in recent years as the higher quality and quantity of forecasters makes it harder ...

Bloomberg About half of economists now expect the Bank of Japan’s (BOJ) next policy move to be monetary easing, including three who see it coming this week, according to a Bloomberg survey. The other 45 of 48 economists surveyed said they expected the BOJ to leave its policy settings unchanged at a two-day meeting ending April 25. The number of ...

Bloomberg An inverted Treasury yield curve is no longer a reliable signal of recession, and what matters more is the level of the curve, Bank of America (BofA) economists Ethan Harris and Aditya Bhave said in a note. The Federal Reserve is flirting with inversion probably because policy makers recognise its waning predictive power in a low-yield global environment, the ...

Bloomberg China has named a new chief for Industrial & Commercial Bank of China Ltd. (ICBC), world’s largest lender by assets, people with knowledge of matter said. Chen Siqing, chairman of Bank of China Ltd., was appointed as party secretary of Beijing-based ICBC at an internal meeting on Monday, the people said, asking not to be identified as the matter ...

Bloomberg South Africa’s central bank says it’s premature to claim victory in the war against inflation and sees price growth stabilising at 4.5 percent only by the end of 2021. While inflation has been inside the central bank’s target band of 3 percent to 6 percent for two years and was at the midpoint of this range in March, it’s ...

Bloomberg As merger talks between Deutsche Bank AG and Commerzbank AG appear to run into more obstacles, potential suitors are jockeying for a piece of the German banking market should government efforts to create a national champion fail. Commerzbank, the smaller of the two, is attracting the most interest, perhaps because it would be easier to digest. Dutch lender ING ...

Bloomberg Wells Fargo & Co. is once again flirting with something that no major US bank has done in a decade: have a dividend yield north of 4 percent. The spike in the yield comes as the result of sliding shares rather than profit growth. Wells Fargo dropped as much as 1 percent in early trading after gaining 2.5 percent ...

Bloomberg India’s new government should review the central bank’s inflation goals, including whether consumer pri-ces or the underlying core measure is the appropriate target to use to determine interest rates, an economic adviser to the current prime minister said. Speaking in his personal capacity, and not as a member of Prime Minister Narendra Modi’s Economic Advisory Council, Rathin Roy said ...

Bloomberg The Argentine peso gained as the government and the central bank announced measures to control inflation after prices rose more than expected in March for the third consecutive month. The peso climbed as much as 2.3 percent before paring gains to finish trading up 1.1 percent at 41.9 per dollar. Some investors saw the announcements as boosting President Mauricio ...