August, 2017

• 13 August

  World’s financial system still has too much risk

  

  Intervening 10 years ago to contain the damage from the banking system’s excessive risk-taking in mortgage-backed securities, the European Central Bank initiated what has proven to be an exceptional and prolonged involvement in markets by central banks. Much has changed since then, yet too much remains the same. The risk of unsettling financial instability, while lower, has morphed and migrated ...

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• 13 August

  Middle East bourses most exposed to foreign funds lag

  

  DUBAI / Reuters Stock markets in the Middle East that are most exposed to foreign funds were the chief losers on Sunday, taking their cue from international bourses, where the mood was soured last week by growing tensions between the United States and North Korea. The worst performer in the region was Egypt’s blue-chip index, which dropped 1.4 percent as ...

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• 13 August

  Bond market looks expensive, until you factor in threat of war

  Bloomberg The bond bulls in the $14 trillion Treasuries market didn’t expect — or want — to be proven right in quite this manner. Ramped-up bellicose rhetoric between US President Donald Trump and North Korean leader Kim Jong Un has stoked fears of imminent war, driving 10-year Treasury yields to the lowest level since June. Unless the two adversaries tone ...

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• 13 August

  Draghi unfazed for now as ECB watches euro inflation impact

  

  Bloomberg If Mario Draghi is worried about the strength of the euro, he’s hiding it well for now. The European Central Bank president has shirked any invitation so far to bemoan the recent appreciation of the single currency in the style of his predecessor Jean-Claude Trichet, who used to complain about “brutal” moves that risk damping growth. Instead, Draghi has ...

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• 13 August

  Philippine central bank head seeks calm as peso hits 11-yr low

  

  Bloomberg Bangko Sentral ng Pilipinas Governor Nestor Espenilla called for calm on Sunday after the peso fell to an almost 11-year low against the dollar last week, saying the currency isn’t expected to free fall given the nation’s strong economic fundamentals. “The peso is market-determined. It’s natural for it to show volatility as it adjusts to market conditions and all ...

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• 13 August

  BOE’s Saunders sees long-term economic damage from Brexit

  

  Bloomberg Bank of England policy maker Michael Saunders said the decision to leave the European Union will have a long-term effect on the economy, though there’s still an argument to increase interest rates now. In an interview in the Evening Standard newspaper, the external Monetary Policy Committee member said Brexit probably means the economy will grow “several percentage points less ...

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• 13 August

  Irish banks may face pressure to write off loans

  

  Bloomberg Irish banks are set to face mounting pressure from regulators to write off bad loans, a person familiar with the matter said. European authorities that now oversee the biggest Irish lenders have consistently pushed bankers to deal with the legacy of non-performing assets left over from the nation’s financial crash through measures such as loan sales. Regulators are beginning ...

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• 13 August

  With no ‘JPMorgan of bitcoin’, exchanges struggle to win trades

  

  Bloomberg Bitcoin needs “Downtown” Josh Brown more than he needs bitcoin. Brown, the chief executive officer of Ritholtz Wealth Management and author of a popular finance blog, has long been skeptical of the digital currency. He finally bought some, he said, “because the goddamn thing won’t go away.” Still, Brown, who helps manage half a billion dollars, isn’t really a ...

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• 13 August

  Macy’s, Kohl’s renew fears of intractable retail slump

  

  Bloomberg A fresh round of sales declines at Macy’s Inc. and Kohl’s Corp., though less severe than Wall Street had feared, is renewing concerns that the department-store industry can’t pull out of a crippling slump. Shares of both retailers declined last week after the quarterly results failed to assure investors that a comeback was taking hold. Same-store sales— a key ...

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• 13 August

  Iran in talks to buy 48 Airbus helicopters

  

  Reuters Iran is holding talks with European planemaker Airbus to buy 48 helicopters for civilian use, an Iranian official was on Saturday quoted as saying, as Iran continues its shopping spree of Western aircraft after the lifting of sanctions. “The Health Ministry is planning to order 45 HEMS (Helicopter Emergency Medical Service) helicopters and the purchase is being negotiated by ...

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