March, 2019

• 27 March

  Searching for meaning in Tesla’s stock price

  

  Tesla Inc.’s stock price has sunk below $260 for the first time since late October. What does that mean? Trying to discern meaning in the particular set of numbers next to the TSLA ticker on any given day is often futile. With a little context, however, that $260 level takes on some interesting dimensions. Most notably, it takes the stock ...

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• 27 March

  Stocks fall as Treasuries rally on global outlook

  

  Bloomberg The rally in bonds gained momentum as traders turned their focus to a worrying economic outlook. Stocks fell, while the dollar rose. Treasury 10-year yields slid below 2.4 percent and rates on benchmark German bunds sank deeper under zero after European Central Bank President Mario Draghi said that an accommodative policy stance is still needed. Energy shares led losses ...

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• 27 March

  China’s stock traders pay most in decade for same banks

  

  Bloomberg China’s financial sector is dividing opinion across its borders in a way not seen since the global credit crisis. Traders on the mainland are paying the most in more than a decade for shares of Chinese banks, brokerages and insurers relative to their offshore-based counterparts, according to data compiled by Bloomberg. The same firm is now on average 54 ...

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• 27 March

  Central banks’ financial risk tool gets IMF endorsement

  

  Bloomberg In a world of persistently low inflation and slowing economic growth, central banks are finding a useful instrument in their toolboxes to curb financial risk. Macroprudential measures — such as limiting who gets a mortgage and adjusting banks’ reserve requirements — have gained traction with central banks since the global financial crisis, and are proving effective. The targeted tools ...

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• 27 March

  Moore calls for 50-point Fed interest rates cut

  Bloomberg Stephen Moore, who Donald Trump may nominate for a seat on the Federal Reserve Board, told the New York Times in an interview that the central bank should immediately reverse course and lower interest rates by half a percentage point. That’s a contrast from language used by sitting board members in recent days. San Francisco President Mary Daly told ...

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• 27 March

  ‘ECB may need to soften impact of negative rates’

  

  Bloomberg Mario Draghi said the European Central Bank (ECB) is ready to soften the impact of negative interest rates if they are found to harm the transmission of its monetary policy. “If necessary, we need to reflect on possible measures that can preserve the favorable implications of negative rates for the economy, while mitigating the side effects, if any,” the ...

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• 27 March

  PBOC may turn less dovish in 2019

  

  Bloomberg The People’s Bank of China (PBOC) is expected to ease policy less aggressively in 2019 compared with the previous year, while maintaining steady injections of liquidity, according to analysts. The PBOC will continue to reduce the amount of money lenders have to put aside as reserves, with the earliest cut taking place next quarter and two others in the ...

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• 27 March

  New Zealand joins global shift away from high rates

  

  Bloomberg New Zealand’s central bank joined the global shift away from higher interest rates, saying its next move is more likely to be a cut and sending the kiwi dollar tumbling by the most in seven weeks. “Given the weaker global economic outlook and reduced momentum in domestic spe-nding, the more likely direction of our next OCR move is down,” ...

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• 27 March

  Hong Kong grants licenses to virtual banks

  

  Bloomberg Hong Kong’s traditional banks are set to face one of their biggest challenges yet: a new breed of financial technology firms estimated to snare as much as 30 percent of their revenue. The Hong Kong Monetary Authority has granted three virtual bank licenses and is processing five more, Deputy Chief Executive Arthur Yuen said in a briefing on Wednesday. ...

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• 27 March

  Malaysia central bank vows support as GDP forecast cut

  Bloomberg Malaysia lowered its economic growth forecast for 2019, and pledged to keep policy accommodative as global risks weigh on the trade-reliant economy. Gross domestic product is expected to increase 4.3 percent to 4.8 percent in 2019, with trade tensions and lower commodity prices among the biggest wildcards, Bank Negara Malaysia said in its annual report on Wednesday. The projection ...

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