December, 2018

• 31 December

  Fed understands it needs to communicate better: El-Erian

  

  Bloomberg The Federal Reserve realises that it can’t put its key policy tool, the federal funds rate, on autopilot, and that it needs to better communicate its policy decisions, said Mohamed El-Erian, Allianz SE’s chief economic adviser. “Even the Fed is understanding that it needs to communicate better,” El-Erian said in an interview on “Fox News Sunday.” It needs to …

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• 31 December

  Emerging markets at mercy of trade, Fed after a painful 2018

  

  Bloomberg Until a trade dispute between the US and China is resolved, a single tweet on the matter will have the power to ignite rallies and sell-offs. The tweet in question this week is President Donald Trump’s declaration that “big progress” is being made towards a deal between the US and China, and it may spur gains across emerging markets. …

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• 31 December

  Trade protectionism will crimp global growth in 2019, says ECB

  

  Bloomberg The European Central Bank expects the global economy to slow in 2019 as rising protectionism curbs trade growth. While economic activity has remained resilient around the world, it has also become more uneven and signs of moderating momentum are increasingly evident, according to the ECB’s latest economic bulletin. Global trade growth has weakened and uncertainties about future trade relations …

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• 31 December

  United Bank of India first to announce cash injection

  Bloomberg United Bank of India became the first of the country’s ailing state-run banks to announce a new cash injection from the government, disclosing in a filing that it will receive 21.6 billion rupees ($308 million) to improve its capital ratios. The announcement sent the bank’s shares up as much as 14 percent, set for the biggest gain since October …

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• 31 December

  SNB disregards critics as franc keeps negative rates in play

  

  Bloomberg Swiss National Bank (SNB) interest rates are stuck to the floor and 2019 could see criticism of the policy growing louder: The financial sector hates it and there’s trouble brewing in the real estate market. After nine years of economic growth and the eradication of deflation risks, the arguments are building for the SNB to call time on the …

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• 30 December

  Japan imports 26.5mn barrels of oil from UAE

  TOKYO / WAM Japan has imported 26.528 million barrels of crude oil from the UAE in November 2018, data released on Sunday by the Agency for Natural Resources and Energy in Tokyo showed. This accounts for 28.3 percent of Japan’s total crude imports, the agency that belongs to the Ministry of Economy, Trade and Industry, reported. Japan’s total crude oil …

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• 30 December

  Treasuries may have to wait until new year for resolutions

  

  Bloomberg Perhaps the best that can be said of a painful year across financial markets is that there’s room for improvement in 2019. It’s less clear exactly what might pull investor sentiment, and Treasury yields, off the current lows. Risk-averse trading in December — which is on track to be the worst month for US stocks since the 2008 crisis …

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• 30 December

  Emerging markets ‘tough’ for investors

  

  Bloomberg If you lost money on emerging Asian bonds and currencies this year, be warned: the first half 2019 may see more of the same. In what could be an unwelcome replay, risk assets are likely to remain at the mercy of the US-China trade war, a messy Brexit and rising US interest rates. Almost all emerging Asian currencies are …

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• 30 December

  Oil watchers see $70 a barrel in 2019 as recession fears fade

  

  Bloomberg The world’s biggest banks are reckoning on a rebound in oil prices next year as fears of a recession prove misplaced. The Brent benchmark will average $70 a barrel in 2019, according to a Bloomberg survey of oil analysts. Futures in London and New York plunged this quarter, with volatility soaring in its final week as crude tracked gyrations …

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• 30 December

  China okays first big power storage pilot project

  

  Bloomberg China approved its first large battery storage pilot project as it seeks to maximise clean energy output and improve grid stability. The initial phase of the venture in the northwestern prov-ince of Gansu will require 1.2 billion yuan ($174 million) of investment and have a capacity of 720 megawatt hours and storage duration of four hours, the Gansu Provincial …

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