September, 2018

• 25 September

  Washington has chosen slow economic growth

  

  It worked in the 1990s: The US economy continued to grow strongly for several years even after it showed signs of capacity constraints and low unemployment. The question is whether that can happen again, or whether this cycle is destined to end in a bout of inflation that prompts the Federal Reserve to raise rates and end the party. The ...

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• 25 September

  Asia’s aversion to bank accounts is a big deal

  

  There’s a flaw in the forecast for an ever-rising Asia: a vast gap in the financial system. Big slices of the population don’t have a bank account. It’s hard to see the region reaching its full potential, let alone surpassing the US as an economic superpower, until this bridge is crossed. An economy without broad use of banks cannot grow ...

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• 25 September

  Mario Draghi is actually preaching in the desert

  

  Spare a thought for Mario Draghi, if you can. The European Central Bank (ECB) president never tires of telling politicians about the urgent need to complete the euro zone’s half-finished monetary union. His logic is sound about this being the best way to fight future crises. Yet after a year in which the region’s leaders failed to do even the ...

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• 25 September

  Praet snaps Draghi’s inflation comments; euro whipsaws

  

  Bloomberg European Central Bank policy maker Peter Praet said he doesn’t believe President Mario Draghi intended to send a new signal when he said the pickup in underlying euro-area inflation is “relatively vigorous.” The euro slid after Praet, the ECB’s chief economist, made the remarks in London on Tuesday. The single currency jumped the previous day when Draghi spoke at ...

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• 25 September

  Danske Bank faces more penalties from regulator

  

  Bloomberg Danske Bank A/S faces more penalties from the financial regulator as multiple probes into one of Europe’s biggest money laundering scandals get under way, according to Denmark’s government. The Danish Financial Supervisory Authority already forced Danske to add almost $800 million to its capital burden back in May, in response to earlier signs of laundering breaches. Business Minister Rasmus ...

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• 25 September

  Deutsche Bank CEO opens door to deals

  

  Bloomberg Deutsche Bank AG is open to a merger once the lender has boosted its profitability over the next 18 months, Chief Executive Officer Christian Sewing said. “We have a very clear plan to remain a global bank, but we have to work on profitability now,” Sewing said at an event in Berlin. “If that happens, we can talk about ...

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• 25 September

  Indian shadow lender seeks insolvency cover

  Bloomberg India’s Infrastructure Leasing & Financial Services Ltd. has sought to shield itself from being dragged to bankruptcy court as it tries to restructure its borrowings in the wake of a string of defaults that have sent shock waves through local markets. The company, which has missed more than five debt payments since August, filed an application with the National ...

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• 25 September

  Nigeria’s MTN attack fizzles as Standard Bank gets reprieve

  

  Bloomberg After coming out all guns blazing, Nigeria’s central bank surrendered more ground in its tussle with MTN Group by giving a reprieve to one of the banks accused of illegally moving $8.1 billion out of the country. Standard Bank Group Ltd. said that the Central Bank of Nigeria won’t take more than $2.63 billion from the accounts of its ...

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• 25 September

  UK: Flights may be grounded in ‘no-deal Brexit’

  

  Bloomberg The UK warned that flights may be grounded if the European Union doesn’t grant reciprocal approvals to its planes and airlines in the case of a no-deal Brexit — a scenario it maintains remains unlikely, despite a recent setback in negotiations. Britain will continue to recognise European Aviation Safety Agency certifications for up to two years after March 29, ...

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• 25 September

  Sears CEO urges immediate action to stave off bankruptcy

  

  Bloomberg Sears Holdings Corp. is reviewing a proposal by Chief Executive Officer Eddie Lampert to keep the retailer alive by restructuring its debts and selling real estate. Plans outlined in regulatory filings include cutting debt by about 78 percent to $1.2 billion and extending near-term maturities, with annual interest savings of 80 percent. The proposal came from ESL Investments Inc., ...

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