July, 2017

• 31 July

  China stimulus measures went the wrong way

  

  When the Great Recession hit, China didn’t hesitate to open up the fiscal taps. But the fast-developing country also embraced another form of stimulus that was a bit different from what John Maynard Keynes had recommended — it encouraged its banks to start lending a lot more. They lent money to corporations, local governments and a variety of private actors. ...

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• 31 July

  Nomura needs offshore focus to keep post-earnings glow

  

  Nomura Holdings Inc. turned in laudable first-quarter results Friday, but Japan’s largest brokerage needs to keep its eye on the overseas ball. Cost cutting and a revival in domestic retail broking helped Nomura offset the fixed-income trading slump that’s beset Wall Street rivals and local peer Daiwa Securities Group Inc. Buoyant results at home don’t mean Nomura can forget about ...

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• 31 July

  Governments’ promises won’t kill internal combustion engine

  

  European governments are making big promises to ban the sale of cars with combustion engines: Germany by 2030, France and the UK by 2040. It’ll take a lot more than promises, though, to bring about the all-electric future. The initiatives could become the biggest government-driven revolution in a major market since anti-tobacco legislation—and a benevolent one, given that car makers ...

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• 31 July

  Stocks advance as growth optimism boosts metals

  

  Bloomberg European stocks headed for the first gain in three days, spurred by raw-material producers on optimism the global economy is gathering momentum. The dollar gained, paring its worst monthly decline since January. S&P 500 Index futures edged higher after Anglo American Plc, Glencore Plc and Rio Tinto Plc helped underpin an advance in the Stoxx Europe 600 gauge. Miners ...

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• 31 July

  Saudi dips on weak Q2 while blue chips support Dubai

  

  DUBAI / Reuters Saudi Arabia’s stock market index recorded its sixth straight session of declines on the back of weak second-quarter corporate earnings, but Dubai outperformed a weaker region as bluechips rose. The Riyadh index slipped 0.3 percent as shares of milk and yoghurt maker Saudi Dairy Foodstuff Co fell 1.3 percent after it reported a 5.2 percent drop in ...

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• 31 July

  Politics to weigh on South Africa’s central bank: Moody’s

  

  Bloomberg South Africa’s central bank is under increasing political pressure to maintain “expansionary” monetary policy, Moody’s Investors Service said as the regulator prepares to challenge an instruction to change its mandate. The High Court in Pretoria on Tuesday will hear the Reserve Bank’s application to review the Public Protector’s order that lawmakers must change the constitution to make the central ...

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• 31 July

  HSBC first big bank to spell out Brexit bill: $300 million

  

  Bloomberg HSBC Holdings Plc faces as much as $300 million in legal and relocation fees as it prepares to move 1,000 staff to Paris, in one of the first indications of the cost of Brexit to the UK’s financial industry. Europe’s biggest lender took a $4 million charge in the second-quarter for “costs associated with the UK’s exit from the ...

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• 31 July

  Inflation hits low bar ECB’s Draghi set

  

  Bloomberg Italian economist Mario Draghi kept expectations low for inflation this summer, and July’s number is proving him right. Consumer-price growth in the euro area stayed at 1.3 percent — enough to argue that deflation risks have disappeared, but too little to meet the European Central Bank president’s goal of just under 2 percent. While it confirms Draghi’s prediction that ...

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• 31 July

  Bond Connect lures China offshore money back home to credit

  

  Bloomberg Turns out that China’s new Bond Connect with Hong Kong isn’t just good for foreigners. Offshore Chinese money is using the channel to bring money back home, taking advantage of opportunities in domestic credit products. With the Chinese yuan’s exchange rate rising in recent months against the dollar — and likely to stay stable with a critical Communist Party ...

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• 31 July

  HSBC rises as 2nd quarter growth backs its turnaround

  

  Bloomberg After posting a second quarter of revenue growth and with plans to return another $2 billion of cash to investors, departing boss Stuart Gulliver’s six-year turnaround of HSBC Holdings Plc might finally be gathering momentum. Adjusted revenue and pretax profit rose 4 percent and 13 percent respectively, beating analysts’ estimates, as the bank continued to pump capital into better-returning ...

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