August, 2020

• 5 August

  Leader plots exit to save Bulgaria’s government

  

  Bloomberg Bulgarian Prime Minister Boyko Borissov is considering stepping down after a month of anti-corruption protests but wants to keep his governing coalition intact until its term expires next year. Borissov, who’s resigned twice before in on-and-off stints as prime minister over the past decade, said he’ll discuss his possible withdrawal with coalition partners to preserve the government. Still, Bulgaria ...

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• 5 August

  PBOC’s attempt to exit crisis mode faces a $500 billion test

  

  Bloomberg China’s banks need about $500 billion in fresh liquidity this month to roll over existing debt and buy government bonds, complicating the People’s Bank of China’s efforts to exit crisis measures. Monetary policy makers have been signalling for weeks that abundant funding made available to tide the world’s second-largest economy through the coronavirus slump will soon be reined in, ...

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• 5 August

  Japan banks on track for profit goals despite bad-loan setback

  

  Bloomberg It’s early days, but Japan’s biggest banks are broadly on course to meet their modest profit goals this fiscal year after bad-loan costs remained within their expectations in the first quarter. Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc. all saw quarterly profit decline after increasing provisions for soured debts during Japan’s ...

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• 5 August

  Thai central bank holds rates steady, sees gradual recovery

  

  Bloomberg The Bank of Thailand held its benchmark interest rate at an all-time low and said it was prepared to use “additional appropriate monetary policy tools” to support an economy suffering the biggest blow in Asia from the coronavirus pandemic. The central bank kept its policy rate at 0.5% in a unanimous decision Wednesday. All but two of the 26 ...

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• 5 August

  RBA offers to buy $359mn of bonds

  

  Bloomberg Australia’s central bank is returning to the government bond market after a three-month hiatus as it aims to re-anchor yields on the three-year security that it targets through its purchasing program. The Reserve Bank of Australia (RBA) offered to purchase $359 million of federal government securities maturing in April 2023 on Wednesday, under its program to lower yields. Governor ...

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• 5 August

  India rate cut is too close to call on CPI risks, says survey

  

  Bloomberg The Reserve Bank of India’s (RBI) policy decision this week is a tricky one to call, with economists split over whether Governor Shaktikanta Das will lower interest rates again to support a fragile economy and banking sector in the face of above-target inflation. Of the 44 economists surveyed by Bloomberg, 22 expect a 25 basis-point rate cut on Thursday, ...

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• 5 August

  Commerzbank cuts full-year profit outlook

  Bloomberg Commerzbank AG abandoned its goal for a full-year profit after losses tied to the failure of Wirecard AG added to surging costs for bad loans, underscoring the challenges as the lender seeks to emerge from a leadership crisis. The outlook revision was driven by a single case that cost the bank 175 million euros last quarter, it said in ...

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• 5 August

  Europe stocks, US futures advance; gold tops $2,000

  

  Bloomberg European stocks climbed to a one-week high and US futures rose as investors focused on US-China trade discussions and American lawmakers making progress on an economic aid package. The Stoxx Europe 600 Index posted broad-based gains, with travel companies, commodity producers and retailers leading the charge. Bank of Ireland Group Plc rallied as the lender’s chief executive officer suggested ...

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• 5 August

  India’s top performing telecom stock is also its biggest money loser

  

  Bloomberg For investors riding a rally in India’s wireless carriers, the best returns are coming from an operator that’s warned it may collapse without help from the government. Although Vodafone Idea Ltd. hasn’t made a profit since 2017 and ended last fiscal year with a record $10 billion loss, its shares have more than doubled in the past three months. ...

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• 5 August

  Bank of Ireland’s shares gain

  Bloomberg Bank of Ireland Group Plc shares rose the most in almost two months, as the lender’s CEO suggested the economy is proving more resilient than expected in face of coronavirus. The company’s shares rose as much as 11% in Dublin to 2.04 euros, the highest level since June 8, giving Ireland’s biggest lender a market value of 2.2 billion ...

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