Tag

#Interest Rates / Policy

Home » Interest Rates / Policy

668 posts
Bookmark?Remove?

Brexit extension, election still most likely, says UBS

LONDON (Reuters) – UBS Wealth Management said on Friday it still expects the UK government to ask for an extension to the deadline for exiting the European Union and to hold a general election, though it acknowledged that chances of a Brexit deal have increase... More »

Bookmark?Remove?

Yields rise on heavy supply at auction and trade hopes

NEW YORK (Reuters) – U.S. Treasury yields rose on Wednesday, a day that saw a flood of supply and on optimism for progress in U.S.-China trade negotiations that begin in Washington on Thursday. On Wednesday, the market absorbed a $24 billion reopening of 10-ye... More »

Bookmark?Remove?

Take Five: Vanity Fair

LONDON (Reuters) – 1/TRADE TENSION HEADACHES Washington’s latest accusation that China is dumping wooden cabinets and vanities on U.S. shores sums up the mood between the two warring sides as they head into another round of high-level discussions. The talks in... More »

Bookmark?Remove?

Norway to spend less wealth fund cash amid strong growth: government

OSLO (Reuters) – Norway plans to spend less money next year from its $1.1 trillion sovereign wealth fund, the world’s largest, as economic growth remains strong and unemployment declines, the center-right majority government said on Monday. “The Norwegian econ... More »

Bookmark?Remove?

Low inflation? Nothing to worry about, Fed’s George says

DENVER (Reuters) – Kansas City Federal Reserve Bank President Esther George on Sunday rejected the notion that the U.S. central bank should cut interest rates to try to boost low inflation, which she said is largely a result of global forces that U.S. monetary... More »

Bookmark?Remove?

Brexit: Deutsche Bank still sees 50% chance of no-deal by year-end

LONDON (Reuters) – Deutsche Bank said on Wednesday it still sees a 50% chance that Britain will leave the European Union without a deal by the end of the year following a general election, but said there’s a 20% chance of a “surprise” agreement later this mont... More »

Bookmark?Remove?

U.S. investors prepare for drawn-out House impeachment proceedings

NEW YORK (Reuters) – Investors are starting to prepare for a long U.S. impeachment process that could drag into 2020. The decision by the House of Representatives to begin impeachment inquiries that could end in a vote to remove President Donald Trump from off... More »

Bookmark?Remove?

Governments must ensure ECB is not overburdened, Merkel says

FRANKFURT (Reuters) – Euro zone governments must reform their economies and use appropriate fiscal policies to ensure that the European Central Bank is not overburdened, German Chancellor Angela Merkel said on Thursday. Speaking at an event in Frankfurt, home ... More »

Bookmark?Remove?

Draghi ties Lagarde’s hands with promise of indefinite stimulus

FRANKFURT (Reuters) – European Central Bank chief Mario Draghi pledged indefinite stimulus on Thursday to revive an ailing euro zone economy, tying the hands of his successor for years to come and sparking an immediate conflict with U.S. President Donald Trump... More »

Bookmark?Remove?

ECB’s tiered rate is cold comfort for euro zone banks

FRANKFURT (Reuters) – The European Central Bank is giving euro zone banks a small reprieve from a penalty charge on their idle cash but this is likely to prove too little, too late for a sector hurt by years of low interest rates. In its latest bid to shield t... More »

Bookmark?Remove?

Highlights: Draghi comments at ECB press conference

FRANKFURT (Reuters) – The European Central Bank approved a fresh stimulus package as expected on Thursday, cutting interest rates and approving a new round of bond purchases to prop up euro zone growth and halt a worrisome drop in inflation expectations. Follo... More »

Bookmark?Remove?

ECB cuts key rate, to restart bond purchases

FRANKFURT (Reuters) – The European Central Bank approved a fresh stimulus package as expected on Thursday, cutting interest rates and approving a new round of bond purchases to prop up euro zone growth and halt a worrisome drop in inflation expectations. The E... More »

Bookmark?Remove?

Asian factories lashed by trade wars, slowing demand in August

TOKYO (Reuters) – The bitter trade war between China and the United States kept Asian factory activity mostly in decline in August, business surveys showed, strengthening the case for policymakers to unleash fresh stimulus to fend off recession risks. In a sur... More »

Bookmark?Remove?

BAML: Buy risky assets as sentiment gets extremely bearish

LONDON (Reuters) – Bank of America Merrill Lynch said on Friday its market sentiment indicator has fallen to a level so bearish it has triggered a “contrarian” buy signal for assets considered more risky, such as equities, for the first time since January. The... More »

Bookmark?Remove?

Australia central bank open to unconventional policy if rates cut…

SYDNEY (Reuters) – Australia’s central bank would consider unconventional monetary options if the cash rate was cut to 0.5%, Deputy Governor Guy Debelle said on Tuesday, though he hoped such heavy policy adjustments would not be needed. Debelle said the Reserv... More »

Bookmark?Remove?

Iran has opportunity to come back into nuclear deal: UK’s Johnson

BIARRITZ, France (Reuters) – Iran has an opportunity to come back into compliance with the nuclear deal and resume dialogue about its nuclear activities, British Prime Minister Boris Johnson said on Monday. U.S. President Donald Trump said earlier he would mee... More »

Bookmark?Remove?

San Francisco crowdfunder Kiva sets up Sierra Leone credit database

(This August 21 story corrects to make clear Kiva a nonprofit organisation, not charity, paragraph 1.) By Cooper Inveen (Reuters) – Kiva, a San Francisco-based tech nonprofit organization, is using blockchain to create an online ID database in Sierra Leone all... More »

Bookmark?Remove?

Powell’s speech support U.S. rate-cut bets

NEW YORK (Reuters) – U.S. interest rates futures rose on Friday as Federal Reserve Chair Jerome Powell said the central bank will do what it can to preserve the longest U.S. economic expansion on record, supporting bets on a further decline in key borrowing co... More »

Bookmark?Remove?

Stimulus hopes support stocks, ease pressure on bonds

LONDON (Reuters) – Global equity markets rose on Monday on signs that major economies would look to prop up stalling growth with fresh stimulus measures, easing pressure on bonds and dampening demand for perceived safe-havens such as gold. Hopes of government ... More »

Bookmark?Remove?

UK households more cautious about major purchases: IHS Markit

LONDON (Reuters) – British working-age households are growing more cautious about making major purchases amid concerns about Brexit and a possible recession, a monthly consumer survey showed on Monday. The IHS Markit Household Finance Index dropped to a three-... More »

Bookmark?Remove?

China to base new lending benchmark on medium-term rates- shares…

BEIJING/SHANGHAI (Reuters) – China’s announcement of key interest rate reforms over the weekend has fueled expectations of an imminent reduction in corporate borrowing costs in the struggling economy, boosting share prices on Monday. The People’s Bank of China... More »

Bookmark?Remove?

U.S. yields tumble on trade worries, political tension

NEW YORK (Reuters) – U.S. Treasury yields fell on Monday, in line with the weak stock market, as trade worries and global political tensions in places such as Hong Kong and Argentina supported safe-haven assets. U.S. 30-year bond yields slid to their lowest si... More »

Bookmark?Remove?

New Zealand’s PM says government always looking at ways to…

WELLINGTON (Reuters) – New Zealand’s Prime Minister Jacinda Ardern said on Monday that spending promised in the annual budget would help stimulate the economy, but the government is always looking at other things it can do. “We are certainly mindful of the rol... More »

Bookmark?Remove?

Hawkish Norway to press on with rate hikes after August pause:…

OSLO (Reuters) – Norway’s central bank is expected to keep interest rates on hold on Aug. 15 while signaling that a hike will likely follow later this year amid solid growth, above-target inflation and currency weakness, a Reuters poll of economists showed. De... More »

Bookmark?Remove?

Take Five: The devil’s in the data

LONDON (Reuters) – 1/ READY FOR A SCARY EURO ZONE GDP SHOW? Fears of a major downturn in euro zone powerhouse Germany grew this week following “scary” industrial output figures for June and reports due over the coming week that will hold those concerns up to t... More »

Bookmark?Remove?

U.S. bond yields rise on confusion over U.S. trade move

NEW YORK (Reuters) – U.S. Treasury yields rose on Friday amid confusion over the United States policy on trade with China, while political turmoil in Italy compounded investor concerns, capping a volatile week in the bond market. Treasury yields fell for a sec... More »

Bookmark?Remove?

Market weighs risk of negative U.S. Treasury yields

(Reuters) – Traders and analysts are considering whether U.S. bond yields would fall below zero as a record amount around the world sank into negative territory this week. The question has become a talking point, and less hypothetical, this week as the U.S. 30... More »

Bookmark?Remove?

U.S. small-cap stocks under renewed threat from tariffs

NEW YORK (Reuters) – Last week’s announcement of more U.S. tariffs on Chinese goods may have undermined the prospects for small-cap stocks to rebound this year, even after a brief respite from the Federal Reserve’s recent interest-rate cut. Just a day after th... More »

Bookmark?Remove?

Global shares ease ahead of Fed test, dollar hits two-month high

LONDON (Reuters) – Global shares eased on Monday and the dollar hit a two-month high against a basket of currencies as markets counted down to a likely cut in U.S. interest rates this week, with much riding on whether the Federal Reserve signals yet more are t... More »

Bookmark?Remove?

African cattle investing – the new cash cow?

JOHANNESBURG/VRYHEID, South Africa (Reuters) – Cattle have long been considered a measure of wealth across Africa – but it is not just farmers cashing in. A pioneering app in South Africa lets investors, eager to benefit from rising global beef demand, buy sha... More »

Bookmark?Remove?

Investors pull $1.5 billion from India equities so far in July: IIF

NEW YORK (Reuters) – Non-residents have pulled about $1.5 billion from Indian equities so far in July, reversing a strong trend of inflows in previous months, data from the Institute of International Finance showed on Wednesday. “Unlike other episodes, which m... More »

Bookmark?Remove?

China second quarter GDP growth slows to 27-year low as trade war…

BEIJING (Reuters) – China’s economic growth slowed to 6.2% in the second quarter, its weakest pace in at least 27 years, as demand at home and abroad faltered in the face of mounting U.S. trade pressure. While more upbeat June factory output and retail sales o... More »

Bookmark?Remove?

Fed seen cutting U.S. rates by 25 bps late July: BAML

NEW YORK (Reuters) – The Federal Reserve will likely reduce key U.S. borrowing costs by a quarter point at its upcoming July 30-31 policy meeting with the chance of a 50 basis-point decrease, Bank of America Merrill Lynch analysts said on Wednesday. The U.S. c... More »

Bookmark?Remove?

U.S. Fed easing could prompt first China rate cut in four years -…

SHANGHAI (Reuters) – China’s central bank could cut its benchmark policy rate for the first time in four years if the U.S. Federal Reserve delivers a widely expected cut in late July, analysts say, as Chinese policymakers step up support for the slowing econom... More »

Bookmark?Remove?

Asian shares stumble as bets off on sharp U.S. rate cuts

SYDNEY (Reuters) – Asian shares were a sea of red on Monday after strong U.S. job gains tempered expectations the Federal Reserve will deliver a large rate cut, while the Turkish lira hovered near two-week lows on worries about central bank independence. Share... More »

Bookmark?Remove?

Lagarde to rely on political skill to overcome shortcomings at ECB

FRANKFURT (Reuters) – A shrewd negotiator who has run the IMF but has little monetary policy experience, Christine Lagarde will face the challenge as the European Central Bank’s new chief of having to revive the euro zone economy with a largely depleted policy... More »

Bookmark?Remove?

As U.S. expansion notches record, recovery may have only just begun

WASHINGTON (Reuters) – A now record-setting run of U.S. economic growth enters its 121st month on Monday, sustained by a decade of low interest rates and massive Federal Reserve intervention that helped put 22 million people back to work. But the real economic... More »

Bookmark?Remove?

Turkish assets rally after opposition wins Istanbul election

ISTANBUL (Reuters) – The Turkish lira, bonds and shares gained on Monday after the opposition dealt a stinging blow to President Tayyip Erdogan by winning control of Istanbul in a re-run mayoral election on Sunday. Turkish assets have lost value since March am... More »

Bookmark?Remove?

Dollar struggles after biggest weekly drop in four months- G20 eyed

LONDON (Reuters) – The dollar was on the back foot on Monday after sustaining its biggest weekly drop in four months last week as traders remained cautious about the prospects of trade talks between the United States and China at this week’s G20 summit. The gr... More »

Bookmark?Remove?

Thai central bank seen holding key rate despite flagging growth:…

BANGKOK (Reuters) – Thailand’s central bank is expected to keep its benchmark policy rate steady on Wednesday for a fourth straight meeting, a Reuters poll showed, despite slowing growth and the way many Asian central banks have shifted toward easing policy. I... More »

Bookmark?Remove?

Trump says did not threaten to demote Fed’s Powell: NBC interview

WASHINGTON (Reuters) – U.S. President Donald Trump said on Sunday on NBC’s ‘Meet the Press’ news program that he has the power to demote Federal Reserve Chairman Jerome Powell but has not threatened to do so. “I didn’t ever threaten to demote him,” Trump said.... More »

Bookmark?Remove?

Your money: Buying or refinancing? The mortgage rate frenzy is back

NEW YORK (Reuters) – Mortgage rates are nearing historic lows again in the United States, making it an ideal time to buy a home – or refinance. “It’s amazing how many times a once-in-a-lifetime opportunity comes around,” said Keith Gumbinger, vice president of... More »

Bookmark?Remove?

Betting the house: investors demand higher premiums for risky…

SYDNEY (Reuters) – Investors in Australian mortgage bonds are demanding higher premiums to buy the riskiest tranches of new debt, as a slowing economy stokes concerns a property downturn could get worse and increase home loan defaults. High-yield investors are... More »

Bookmark?Remove?

Safe havens emerge in China, South Asia as recession risks grow

HONG KONG/SYDNEY (Reuters) – Fears of a global recession are on the rise as the U.S.-China trade war re-escalated in May, sending investors to the safety of U.S Treasuries, the Japanese yen and gold. But in Asia, investors are exploring new sanctuaries, from C... More »

Bookmark?Remove?

U.S. recession odds rise to 40-45% in six months: DoubleLine’s…

(Reuters) – Jeffrey Gundlach, chief executive officer of DoubleLine Capital, said on Thursday the odds of the United States sliding into a recession in the next six months have risen to 40-45% and the odds were 65% within the next year. Gundlach, who oversees ... More »

Bookmark?Remove?

World bonds wave recession flags as future inflation evaporates

LONDON (Reuters) – After almost three years of successfully predicting a global economic revival, world bond markets are furiously flagging the risk of yet another recession, as well as low inflation for a generation. Spooked by the escalating U.S.-China trade... More »

Bookmark?Remove?

Moderate leaders try to protect Italy – from their own government

ROME (Reuters) – Italy’s prime minister and economy minister have formed an unofficial alliance with the president to prevent the euro zone’s third-largest economy being dragged into financial crisis by its ruling parties, sources say. Prime Minister Giuseppe ... More »

Bookmark?Remove?

Investment grade bond funds suck in record $12.3 billion as…

LONDON (Reuters) – Investors plowed a record $12.3 billion into investment grade bond funds and ditched equities over the past week, Bank of America Merrill Lynch said on Friday, as worries over trade tensions and the world economy reinforced a run for safe-ha... More »

Bookmark?Remove?

Global recession fears grow as manufacturing shrinks across Asia

HONG KONG (Reuters) – Factory activity contracted in most Asian countries last month as an escalating trade war between Washington and Beijing raised fears of a global economic downturn and heaped pressure on policymakers in the region and beyond to roll out m... More »

Bookmark?Remove?

India factory activity grows at fastest pace in three months in…

BENGALURU, (Reuters) – India’s manufacturing sector expanded at its quickest pace in three months in May on improved output and new orders, according to a private business survey which also showed a pick up in hiring. The survey found increased optimism about ... More »

Bookmark?Remove?

First net inflows into global equities in 10 weeks: BAML

LONDON (Reuters) – Investors have added to their global equity holdings for the first time in 2-1/2 months and continued to pile into bonds, Bank of America Merrill Lynch said on Friday, as worries about the U.S.-China trade spat sent shudders through financia... More »

Bookmark?Remove?

Dollar stalls near one-month high after Fed minutes

NEW YORK (Reuters) – The U.S. dollar held near a one-month high on Wednesday after minutes from the May Federal Open Market Committee meeting showed officials agreed that their current patient approach to setting monetary policy could remain in place “for some... More »

Bookmark?Remove?

Investors shun equities, pile into bonds in past week: BAML

LONDON (Reuters) – Investors are neither extremely bullish nor bearish, according to Bank of America Merrill Lynch’s gauge of market sentiment, as they weigh the impact of trade tensions between the United States and China. Investors pulled $19.5 billion out o... More »

Bookmark?Remove?

Further Brexit delay would hit UK economy: BoE’s Broadbent

LONDON (Reuters) – Britain’s economy risks damage if Brexit is delayed beyond its latest Oct. 31 deadline because companies would continue to hold back on investment, Bank of England deputy governor Ben Broadbent was quoted as saying on Monday. “It’s pretty cl... More »

Bookmark?Remove?

Investors pull more than $20 billion from stocks on ‘trade deal…

LONDON (Reuters) – Global equities have seen outflows of $20.5 billion in the past week as “trade deal trauma” pushed more money into bonds, Bank of America Merrill Lynch said on Friday, the latest sign of how growing global trade tensions are roiling financia... More »

Bookmark?Remove?

Strong stock and bond markets at odds over global growth

NEW YORK (Reuters) – It looks like something has to give in global markets. Stocks and bonds around the world have rallied atypically together since the start of the year, rewarding investors both bullish and bearish on the direction of global growth. The main... More »

Bookmark?Remove?

Bridgewater warns of peak U.S. profit margins, lower stock prices

(Reuters) – The major drivers of high U.S. corporate profit margins are unsustainable and “now under threat”, which will eventually result in much lower equity prices, Bridgewater Associates, the world’s largest hedge fund, said on Wednesday in a report. “Over... More »

Bookmark?Remove?

ECB model suggests euro zone growth could slow further: sources

WASHINGTON (Reuters) – An internal European Central Bank model indicates the euro zone’s economic growth could slow further in the second quarter, suggesting the projected recovery may be delayed even further, two sources familiar with the discussion said on F... More »

Bookmark?Remove?

ECB’s Coeure says financial risks from no-deal Brexit are limited

BUCHAREST (Reuters) – The European Central Bank considers that risks to the euro zone financial stability from a no-deal Brexit are “limited” and have been broadly addressed, ECB board member Benoit Coeure said on Friday. But he repeated the ECB’s call on fina... More »

Bookmark?Remove?

Egypt’s central bank seen maintaining key rates: Reuters poll

CAIRO (Reuters) – Egypt’s central bank is likely to maintain interest rates at its meeting on Thursday, a Reuters poll showed on Monday, although some analysts predicted a cut ahead of expected fuel price increases this summer. Eight out of 12 economists polle... More »

Bookmark?Remove?

Fed’s Evans says wait-and-see approach is prudent

HONG KONG (Reuters) – With downside risks looming and uncertainties rife, the U.S. Federal Reserve is prudent to wait for more economic data before deciding whether its next move will be to raise rates, or cut them, Chicago Fed Bank President Charles Evans sai... More »

Bookmark?Remove?

Skittish investors pull more than $20 billion from stocks, rush…

LONDON (Reuters) – Global equity funds saw massive outflows this week, a sharp reversal from last week’s inflows as pessimism over economic growth gripped investors once again, driving them instead to search for yield in credit and buy safer assets like bonds.... More »

Bookmark?Remove?

Overdone? Short EU equities ‘most crowded’ trade for first time

LONDON (Reuters) – Fund managers have named bearish bets in European equities as the “most crowded” trade in Bank of America Merrill Lynch’s survey for the first time in its history, suggesting sentiment for one of the world’s most shunned markets may rise fro... More »

Bookmark?Remove?

Equity funds see biggest weekly inflows in a year: BAML

LONDON (Reuters) – Investors plowed $14.2 billion into global equity funds this week, the largest amount in a year as investors jumped on to 2019’s stock market rally, Bank of America Merrill Lynch said on Friday, citing flow data provider EPFR. An index of gl... More »

Bookmark?Remove?

Worst start to year for equity flows since 2008: BAML

LONDON (Reuters) – A $10 billion wipeout over the last week has compounded the worst start to a year for equity flows since 2008, Bank of America Merrill Lynch strategists said on Friday. Citing data from flow-tracker EPFR, BAML’s analysts calculated that just... More »

Bookmark?Remove?

ECB papers over euro zone cracks with more bank loans

FRANKFURT (Reuters) – The European Central Bank’s fourth round of cheap long-term loans targeted at banks may steer euro zone lenders away from a cliff edge in funding. But it is a symptom of, rather than a cure for, the bloc’s economic malaise that appears to... More »