Banking

Bloomberg Germany’s economic growth picked up only moderately in the first quarter and the underlying pace of expansion remains subdued on the back of an industrial downturn, according to the Bundesbank. Orders in manufacturing have “literally collapsed” and the mood has “significantly deteriorated” in the industry that used to be the motor of export-heavy economy, the German central bank said ...

Bloomberg The European Central Bank’s (ECB) negative interest-rate policy has been effective at stimulating the economy and there isn’t a need at this stage to mitigate the profit squeeze it’s caused commercial banks, according to Governing Council member Vitas Vasiliauskas. “I think it’s still a positive tool and at this stage, today, I don’t think that there is a need ...

Bloomberg A combination of low liquidity and high complacency mean cross-asset volatility won’t stay at historic lows for much longer, according to Morgan Stanley. “There are still two things that argue against the current levels of volatility being correct or sustainable,” cross-asset strategist Andrew Sheets said in an interview. “The first is that market liquidity is still not great. The ...

Bloomberg Egypt plans to sell a stake in Banque du Caire, one of the country’s biggest state-owned lenders, towards the end of this year, central bank Governor Tarek Amer said. “The size is around 20 percent; might go up to 30 percent,” Amer said in an interview in Washington, where he attended the International Monetary Fund and World Bank annual ...

Bloomberg Jeremy Corbyn being elected UK prime minister would be just as damaging to British banks’ profits as the country crashing out of the European Union without a withdr- awal agreement, according to Citigroup Inc. While London-listed bank stocks have recovered from last year’s lows as the risk of a “no-deal Brexit” gradually subsides, a snap election is becoming more ...

Bloomberg Global finance ministers and central bankers are prepared to “act promptly” to shore up growth in a world economy that faces downside risks including trade tensions, according to a statement. While growth is projected to firm up in 2020, “risks remain tilted to the downside,” according to a communique by the International Monetary and Financial Committee, the main advisory ...

Bloomberg Bank of Canada (BOC) Governor Stephen Poloz said whether he’s done with hiking altogether is a “data-dependent question,” adding the economy continues to work through headwinds that warrant stimulative rates. Asked at a press briefing in Washington about investor expectations that the Canadian central bank’s rate normalisation has come to an end, Poloz said market pricing seems to be ...

Bloomberg European Central Bank President Mario Draghi took the rare step of weighing in on the hot debate over whether President Donald Trump is undermining the independence of the Federal Reserve. Speaking to reporters at the International Monetary Fund meetings in Washington, Draghi said he was “certainly worried about central bank independence” and especially “in the most important jurisdiction in ...

Bloomberg Reserve Bank of India Governor Shaktikanta Das has an “out of the box” suggestion: central banks need to be more flexible on the size of their interest-rate moves. Instead of a conventional 25 basis point cut and announcement of a dovish, hawkish or neutral stance to give guidance on future actions, policy makers could just change the rate to ...

Bloomberg The Swiss National Bank (SNB) could reduce its already ultra-low interest rates again if the situation warrants, President Thomas Jordan said. With a deposit rate of minus 0.75 percent, the SNB has already enacted the lowest interest rate of any major central bank. That tool is designed to keep pressure off the franc, which is regarded as a safe ...